Bright Spark Trading has the following transactions in the last month of its year ending31 December 2022.9 Dec29 Dec31 DecCollected in December 2022, $5,100 for service revenue earned and$500 from customers owing.Received a utility bill of $420 for the month of December 2022. Thebill will be paid next month.$500 of the prepaid insurance paid in September 2022 has expired.31 DecReceived $2,350 cash for future services to be provided to a customer.31 DecOvertime salaries of $1,200 for the last 3 days of the month will be paidin January 2023.Analyse the above and record all necessary entries. Narrations and dates are notrequired.

DateAccountDebitCredit Accounts Receivable 500 Service Revenue 5,100 Cash 5,60029th DecUtilities…

Answered: Bright Spark Trading has the following…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 9P

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Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
Carla Vista Salon Supply Company has accounts receivable of $105,000 at March 31, 2025. An analysis of the accounts shows these amounts: Month of Sale March February December and January October and November Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Balance, March 31 (a) 2025 $72,000 14,800 11,000 7,200 $105,000 Credit terms are 2/10, n/30. At March 31, 2025, there is a $2,900 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimates of uncollectibles are as shown below: 2024 $78,600 7 2% 25 9,000 50 2,500 Estimated Percentage 1,000 $91,100 Uncollectible Determine the total estimated uncollectible accounts receivable at March 31, 2025. Total estimated uncollectibles accounts receivable $
Novak Corp. has accounts receivable of $111,000 at March 31, 2022. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2022 2021 March $61,000 $81,000 February 13,300 8,300 December and January 11,300 2,700 November and October 7,200 1,400 $92,800 $93,400 Credit terms are 2/10, n/30. At March 31, 2022, there is a $3,700 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage of receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below Age of Accounts Estimated PercentageUncollectible Current 2 % 1–30 days past due 7 31–90 days past due 25 Over 90 days past due 50 Determine the total estimated uncollectible accounts receivable. Total estimated uncollectibles accounts receivable $Enter the total estimated uncollectibles…
Tom’s Surf Company, whose fiscal year ends December 31, completed the following transactions involving notes payable:2018Nov 30 Purchased inventory display equipment by issuing a 60 day 10 percent note for $35,000.Dec 31 Made the end-of-year adjusting entry to accrue interest expense2019Jan 29 Paid off the balance of the notePrepare the journal entries for the above transactions. Round your answers for interest calculations to the nearest cent. Assume there are 365 days in the year.
On August 1, 2021, Avonette, Inc., sold equipment and accepted a six-month, 9%, $50,000 note receivable. Avonette's year-end is December 31. Which of the following accounts will Avonette credit in the journal entry at maturity on February 1, 2022, assuming collection in full? O A. Interest Receivable B. Cash OC. Interest Payable O D. Note Payable

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