Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually,.) (a) Crane Company accepted a Visa card in payment of a $200 lunch bill. The bank charges a 3% fee. What entry should Crane make? (b) Larkspur, Inc. sold its accounts receivable of $61,600. What entry should Larkspur make, given a service charge of 3% on the amount of receivables sold?
Q: Read the following information to answer questions 2.1 - 2.2. LA Fashion has credit sales of…
A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…
Q: A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount…
A: REASON : AS COMPANY IS SELLING ITS RECEIVABLE THEN SERVICE CHARGE IS DEDUCTED , IT WILL…
Q: Gideon Company uses the direct write-off method of accounting for uncollectible accounts. On May 3,…
A: Under the direct write-off method, the bad debt is charged to expense when accounts receivable are…
Q: As the accountant for Pure-Air Distributing, you attend a sales managers’ meeting devoted to a…
A: The amount reported in the income statement account Bad Debts Expense pertains to the estimated…
Q: On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500…
A: Notes payable is recognized as a negotiable instrument signed by the promisor who agreed to pay a…
Q: An inexperienced accountant for Morgan Company made the following incorrect entries. 1.Notes…
A: In order to record the exchange of the not from Joe Wood Company for open accounts receivable is…
Q: Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, Gideon…
A: Note: Under the direct write-off method, bad debts expense are recorded when the company is sure…
Q: On July 31, the accountant for Team Shirts was reviewing items related to accounts receivable. The…
A: Bad debts expense for July = Credit Sales x estimated uncollectible % Ending balance in the…
Q: Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the…
A: Lets understand the basics. In allowance method, allowance for bad debt is created as and when…
Q: he activity in the credit card account of Mara for one billing period shows the following…
A: The activity in the credit card account of Mara for one billing period shows the following…
Q: Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the…
A: Note: Under the Direct write-off method, bad debts expense are recorded when the company is sure…
Q: The SWIPE Company's Account Receivable Control Accounts had balance of P2,865,000, which the…
A: Trade Receivable: Trade receivables are defined as the amount owed to a business by its customers…
Q: On March 29, Jangles Corporation received a $21,800 invoice dated March 26. Cash discount terms were…
A: 4/10 Term says that if the due amount is paid within 10 days then. they can avail 4 % discount.
Q: Alpha Gym allows services to be on account to loyal customers. The unadjusted Accounts Receivable at…
A: Formula: Bad debts amount = Sales amount x percentage of bad debts amount Sales amount to be…
Q: ubin Enterprises had the following sales-related transactions on a recent day: a. Billed customer…
A: What is Journal Entries? A journal entries are generally used to record a business transaction in…
Q: . A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to…
A: INTRODUCTION In the question two terms have been used which are "sales" and "net sales". Sales is…
Q: Exon Company sold accounts receivable of $28,000 (with an allowance for doubtful accounts of $840)…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Presented below are two independent transactions. a. Fiesta Restaurant accepted a Visa card in…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: 2. Colde Inc. has the following transactions: Jan 07, 2020 Made sales on credit for $555,000 May 13,…
A: Sales and purchases are major expenses for any trading company. Most of the time, a company will…
Q: A customer hands you $3,850 in cash and would like to purchase 14 prepaid cards of $275 each. The…
A: As per policy, POS register do not allows more than $ 2000 for a single transaction. Doing…
Q: At the beginning of Year 1, a company has a balance of $24,800 in accounts receivable. Because the…
A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: a. From the following list of balances, prepare the Accounts Receivable Control Account for the…
A: Accounts Receivable: Accounts receivable indicates the amounts which company has not received from…
Q: Malachi Department Store starts its business on May 1, 2022 and completes the following transactions…
A: Credit Card Sales are the sales when the customer pays through credit cards and the money transfer…
Q: Advanced Packaging accepted a credit card account receivable in exchange for $25,000 of services…
A: The revenues generated increase owner's equity and any expenditure incurred decreases owner's…
Q: A business issued a 90-day, 8% note for $34,000 to a creditor on account. Illustrate the effects on…
A: Given that, term of the Note = 90 days rate of the note = 8% Amount of the Note = $34000 interest…
Q: The activity in the credit card account of Mara for one billing period shows the following…
A: Activity of credit card account of Mara for one billing period are as : 1. Nov 18 purchase = P4500…
Q: Which of the following would occur if a company factored $2,500,000 of receivables with a 2% fee?…
A: Formulas: Factoring expenses = Receivables * Fee rate
Q: A company factored $45,000 of its accounts receivable and was charged a 4% factoring fee. The…
A: Cash received from factors = Accounts receivable transferred - factoring fees where, Factoring fees…
Q: The following information is from the records of Mountainview Camera Shop: Accounts receivable,…
A: Bad debt expense is the expense which is recorded when a receivable becomes uncollectible.
Q: For each of the following situation, solve for a missing amount. In each case, there is only one…
A:
Q: Al Ahlya Company wrote a RO2,500, three-months, 8% promissory note dated August 1, to remove credit…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Nizwa Shopping Center received RO 2000 for equipment sold on account last month. The company should…
A: Date Account Titles and Explanation Debit Credit Cash RO 2,000…
Q: Lee Co. Ltd. purchases NT$6,000 of music downloads for its restaurant from Yang Music, using a Visa…
A: Formula: Service charge expense = Purchase value x Service fee %
Q: On November 10, JumpStart Co. provides $2,260 in services to clients. At the time of service, the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: At the end of the month of January, you reconciled your credit card account. All of the…
A: Credit Card: It is the card that is used for a purchase . Charges are made against a line of…
Q: Alpha Gym allows services to be on account to loyal customers. The unadjusted Accounts Receivable at…
A: The following computations are done in the records of Alpha Gym NRV of accounts Receivables.
Q: Rubin Enterprises had the following sales-related transactions on a recent day: a. Billed customer…
A: Journal entry is the activity of making summary of transactions both economic and non-economic.…
Q: If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and…
A: Average Collection Period helps to know the trend of collection of dues. The formula of Average…
Q: Below are the accounts and transaction details for the month of July from a Sweets & Snacks…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Crane Company has the following accounts in its general ledger at July 31: Accounts Receivable…
A: General journal: It is the initial step to record all the transactions in a general journal before…
Q: Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance…
A: (a) Prepare journal entry to write-off the account of incorporation A, under direct-write off…
Q: Nizwa Shopping Center received RO 2,000 for equipment sold on account last month. The company should…
A: When the equipment was sold Accounts receivable account would have been debited for RO 2,000 for the…
Q: Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the…
A: WE USE THE ALLOWANCE ACCOUNT BALANCE TO WRITE OFF THE ACCOUNT RECEIVABLES .
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Consider these transactions: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sunland Restaurant accepted a Visa card in payment of a $300 lunch bill. The bank charges a 2% fee. What entry should Sunland make? (b) Splish Brothers Company sold its accounts receivable of $60,400. What entry should Splish Brothers make, given a service charge of 2% on the amount of receivables sold? No. Account Titles and Explanation (a) (b) Textbook and Media Debit CreditConsider these transactions: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) Carla Vista Restaurant accepted a Visa card in payment of a $250 lunch bill. The bank charges a 2% fee. What entry should Carla Vista make? Tamarisk Company sold its accounts receivable of $67,100. What entry should Tamarisk make, given a service charge of 2% on the amount of receivables sold? No. Account Titles and Explanation (a) (b) Debit CreditConsider these transactions: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) (b) Cullumber Restaurant accepted a Visa card in payment of a $400 lunch bill. The bank charges a 2% fee. What entry should Cullumber make? Marin Company sold its accounts receivable of $64,300. What entry should Marin make, given a service charge of 2% on the amount of receivables sold? No. Account Titles and Explanation (a) (b) Debit Credit
- Current Attempt in Progress Consider these transactions: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Crane Restaurant accepted a Visa card in payment of a $400 lunch bill. The bank charges a 3% fee. What entry should Crane make? (b) Larkspur Company sold its accounts receivable of $64,500. What entry should Larkspur make, given a service charge of 3% on the amount of receivables sold?Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) Blossom Company accepted a Visa card in payment of a $300 lunch bill. The bank charges a 3% fee. What entry should Blossom make? (b) Kingbird, Inc. sold its accounts receivable of $67,100. What entry should Kingbird make, given a service charge of 3% on the amount of receivables sold? No. Account Titles and Explanation Debit Credit (a) enter an account title to record transaction A enter a debit amount enter a credit amount enter an account title to record transaction A enter a debit amount enter a credit amount enter an account title to record transaction A enter a debit amount enter a credit amount (b) enter an account title to record transaction B enter a debit amount enter a credit amount enter an account title to record transaction B enter a debit amount enter a credit amount enter an account title to record transaction B enter a…Consider these transactions: (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) (a) (b) Sandhill Restaurant accepted a Visa card in payment of a $150 lunch bill. The bank charges a 4% fee. What entry should Sandhill make? (b) Teal Mountain Company sold its accounts receivable of $68,000. What entry should Teal Mountain make, given a service charge of 4% on the amount of receivables sold? No. Account Titles and Explanation (a) Debit 0000 Credit SURRO
- Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Blue Spruce Restaurant accepted a Visa card in payment of a $125 lunch bill. The bank charges a 4% fee. What entry should Blue Spruce make? (b) Swifty Company sold its accounts receivable of $90,000. What entry should Swifty make, given a service charge of 2% on the amount of receivables sold?Consider these transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Culver Restaurant accepted a Visa card in payment of a $200 lunch bill. The bank charges a 2% fee. What entry should Culver make? (b) (a) (b) Pronghorn Company sold its accounts receivable of $63,000. What entry should Pronghorn make, given a service charge of 2% on the amount of receivables sold? Account Titles and Explanation Debit CreditUse the following sales journal to record the transactions. All credit sales are terms of n/30. (If a box is not used in the journal leave the box empty; do not select information or enter a zero.) i (Click the icon to view the transactions.) Jun Date 2024 Invoice No. Account Debited More info Jun. 1 Jun. 8 Customer Jun. 13 Jun. 28 Sales Journal Post. Ref. Accounts Receivable DR Sales Revenue CR Sold merchandise inventory on account to Ford Junk, $1,250. Cost of goods, $960. Invoice no. 101. Page Cost of Goods Sold DR Merchandise Inventory CR Sold merchandise inventory on account to Iris Fray, $2,250. Cost of goods, $1,650. Invoice no. 102. Sold merchandise inventory on account to Jack Tremane, $400. Cost of goods, $240. Invoice no. 103. Sold merchandise inventory on account to Gail White, $810. Cost of goods, $650. Invoice no. 104. Print Done X
- If a client is on a cash basis, how should you enter beginning Accounts Receivable? Assume that you are using the "Forms" method to enter the opening balances. ACash basis clients cannot use QuickBooks BRecord all open invoices on the original date using the original items CRecord all invoices as Sales Receipts using an item linked to Opening Balance Equity DRecord one lump sum invoice on the Start Date using an item linked to Opening Balance EquityAI Kamil Hypermarket accepted a Bank Muscat credit card for a RO 7,500 purchase. Bank Muscat charges a 4% fee. Al Kamil Hypermarket should record Service Charge Expense as a Select one: O a Debit of RO 7,500 O b. None of the answers are correct O c Credit of RO7,200 O d. Credit of RO 300 O e. Debit of RO 300TeleComm customer ADR circuits paid off an $9500 balance on its accounts receivable. TeleComm should record the transaction as a debit to accounts receivable-A DR circuits and a credit to cash. True or false?