Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Made sales of $22,000. McFarlane estimates that warranty expense is 3% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1 More info Nov. 1 Nov. 20 Dec. 31 Dec. 31 Made sales of $22,000. McFarlane estimates that warranty expense is 3% of sales. (Record only the warranty expense.) Paid $200 to satisfy warranty claims. Estimated vacation benefits expense to be $3,500. McFarlane expected to pay its employees a 5% bonus on net income after deducting the bonus. Net income for the year is $48,000. Print Done X

Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Made sales of $22,000. McFarlane estimates that warranty expense is 3% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1 More info Nov. 1 Nov. 20 Dec. 31 Dec. 31 Made sales of $22,000. McFarlane estimates that warranty expense is 3% of sales. (Record only the warranty expense.) Paid $200 to satisfy warranty claims. Estimated vacation benefits expense to be $3,500. McFarlane expected to pay its employees a 5% bonus on net income after deducting the bonus. Net income for the year is $48,000. Print Done X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

See similar textbooks

Similar questions

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.
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?
McNamara Industries completed the following transactions during 2024: (Click the icon to view the transactions.) Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Made sales of $16,000. McNamara estimates that warranty expense is 5% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1 More info Nov. 1 Nov. 20 Dec. 31 Dec. 31 ← Made sales of $16,000. McNamara estimates that warranty expense is 5% of sales. (Record only the warranty expense.) Paid $500 to satisfy warranty claims. Estimated vacation benefits expense to be $3,500. McNamara expected to pay its employees a 4% bonus on net income after deducting the bonus. Net income for the year is $25,000. Prin Done X
Outstanding Publishing completed the following transactions during 2024: i (Click the icon to view the transactions.) Journalize the transactions (explanations are not required). Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Oct. 1: Sold a six-month subscription (starting on November 1), collecting cash of $300, plus sales tax of 4%. (Prepare a single compound entry for this transaction.) Credit Date Accounts and Explanation Debit Oct. 1 More info Oct. 1 Nov. 15 Dec. 31 Sold a six-month subscription (starting on November 1), collecting cash of $300, plus sales tax of 4%. Remitted (paid) the sales tax to the state of Tennessee. Made the necessary adjustment at year-end to record the amount of subscription revenue earned during the year. Print Done X
Consider the following note payable transactions of Cabico Video Productions. Data table: 2017 Sep.1 Purchased equipment costing $26,000 by issuing a one-year, 6% note payable. Dec. 31 Accrued interest on the note payable. 2018 Sep.1 Paid the note payable plus interest at maturity. Requirements: Journalize the transactions for the company. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Triton Publishing completed the following transactions during 2018. Journalize the transactions ( explanations are not required). Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Oct 1: Sold a six-month subscription (starting on November 1), collecting the cash of $390, plus a sales tax of 4%. What is the single compound entry for this transaction.)
Additional information: 1. The company uses a perpetual system 2. The company uses control accounts for selling and administrative expenses. 3. The company records and posts its adjusting entries to its account only at year-end. 4. Uncollectible accounts average 0.5% of net sales. 5. The P400K note receivable was received on March 1, 2019. The 6-month note carries an annual interest rate of 12%, the interest to be collected at the maturity date. 6. The balance in the prepaid insurance account represents payment made on January 1, 2019, for a 1-year comprehensive insurance policy. 7. The property and equipment account consists of land, P500K; buildings, P5.5M; and equipment, P2M. The buildings are depreciated over a 25-year life; the equipment over an 8-year life. Straight-line depreciation is used; residual value is disregarded. No acquisitions have made in 2019. The depreciation on the buildings is treated as an administrative expense; depreciation on the equipment as a selling…
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2024, accounts receivable totaled $675,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2024 and $26,000 in receivables were written off during the year as uncollectible. Also, $2,200 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year. Required: 1. Prepare journal entries to record the write-off of receivables, the collection of $2,200 for previously written off receivables, and the year-end adjusting entry for bad debt expense. 2. How would accounts receivable be shown in the 2024 year-end balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the…
On January 1, 2019, Jasmin Company had a credit balance of P260,000 in the allowance or uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the current year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year totaled P9,000,000. What is the uncollectible accounts expense? a. P325,000 b. P180,000 c. P440,000 d. P65,000
Sadaf Oman Company's ledger showed an ending accounts receivable balance of RO 25,000 on April 30, 2020. During the next month, May, the company provided services for RO 24,000 in total. Customers made down payment of RO 3,000; and the remaining balance was on account. The Company received payments on this account of RO 15.000. The balance in the T-account for the accounts receivable at the end of May, 2020 is: O a. RO 31,000 debit. O b. RO 19,000 debit. O. RO 26,000 debit. O d. RO 28,000 debit. O e. None of the options are correct
Record the following transactions in the journal of Renschler Communication, Inc. Explanations are not required. Use a 360-day year for interest computations and round to the nearest dollar. A (Click the icon to view the transactions.) (Record debits first, then credits. Exclude explanations from any journal entries.) Dec 16: Received a $6,000, 60-day. 12% note on account from Jazz Music. Journal Entry Date Accounts Debit Credit Dec 16, 2017 Dec 31: Made an adjusting entry to accrue interest on Jazz Music note. (Use a 360-day year for your calculation. Enter amounts to the nearest dollar.) Journal Entry Date Accounts Debit Credit Dec 31, 2017 More Info 2017 Dec 16 Received a $6,000, 60-day, 12% note on account from Jazz Music. Feb 14: Collected the maturity value of Jazz Music note. (Enter amounts to the nearest dollar.) 31 Made an adjusting entry to accrue interest on Jazz Music note. Journal Entry 2018 Feb 14 Collected the maturity value of Jazz Music note. Date Accounts Debit Credit…
Reed Co. had the following transactions (see below) during November and December of 2025. Requirements: 1. What amount of interest will Reed pay in 2025 (use 360 days in calculations as needed)? Record the journal entries for each of the transactions listed below. Record any necessary year-end adjusting journal entries for related to these transactions. Record the payment of the note in 2026. Transactions 1-Nov-25 Issued a note to the bank with the following terms. Interest and principal paid at maturity. Days 75 Interest Rate 5.00% Face Amount $ 75,000.00 1-Dec-25 Received $18,000 cash from a customer as an advanced payment for services to be provided and earned evenly for 1 year. 10-Dec-25 Made cash sales, not including sales tax) of $ 100,000.00 Cost of goods sold for these sales of 81,000.00 Associated sales tax rate is 6% 30-Dec-25 Paid the sales…