Widgets, Inc. makes a $300 on account sale to Custom Motors. How is the sale recorded in the Accounts Receivable subsidiary ledger? O A. as a $300 debit O B. It is recorded upon payment. O C. as a $300 payment O D. as a $300 credit
Q: The series of five transactions recorded in the following T accounts were related to a sale to a…
A: Journal: Journal is the book of original entry. Journal consists of the day today financial…
Q: Use the journals and ledgers that follow. Total the journals. Post the transactions to the…
A: Accounts receivable represents the amount that has been earned by the company but the customer has…
Q: Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an…
A: Part 1: Journal entry for the bad debt as follows:
Q: On June 12, Music, Incorporated sells $4,000 of goods on account to a credit customer with credit…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Provide your answers in the space given below. IF TWO OR MORE ACCOUNTS ARE DEBITED OR CREDITED,…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: SALES TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Receivable, Sales Tax Payable,…
A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: ccurred between Garfield Company and MiKi, Inc.: (a) On August 1, Garfield Company sold merchandise…
A: Journal Entries The act of recording or keeping track of any financial or non-financial action is…
Q: Which one of the following journal entry is Correct on 15th February 2020? a. Debit Purchase OMR…
A: Sales means amount of goods that are sent or sold to some other parties. It can be on cash basis or…
Q: Sunland Company has a balance in its Accounts Receivable control account of $11,100 on January 1,…
A: Account receivable control account balance as on 01.01.2022 = $ 11,100 and it consist of three…
Q: Record the following transaction in the appropriate account: Transaction Started business with cash…
A: A journal is a primary book where the transactions are originally recorded. Further, a journal entry…
Q: Wyatt Oil has the following attached accounts on its books: Wyatt Oil extends credit on terms of…
A: current receivable means, as of any date, Gross Receivables less the portion of such Gross…
Q: On July 9, Bonita Company sells goods on credit to Sandhill Company for $4500, terms 2/10, n/60.…
A: Sales Discounts = Sales value x discount rate = $4500 x 2% = $90
Q: 7. BSU Food Processing Center was authorized to sell various Food products. They sold this products…
A: 5/5/1 discount term means that first 5% discount will be given , after deducting that discount , 5%…
Q: 2. SALE OF ACCOUNTS RECEIVABLE Present the journal entries specified below. Tamarisk Company sells…
A: Accounting Rules (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses,…
Q: Pharoah Company has a balance in its Accounts Receivable control account of $ 11,300 on January 1,…
A: Credit sales represents the sale that has been made but the payment for the same has not been…
Q: Crane Company has a balance in its Accounts Payable control account of $ 8,020 on January 1, 2022.…
A: Working Notes: (1.) January 1 balance in the Valdez Company subsidiary account = Beginning balance…
Q: Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 1/10, net 30, for…
A: Here, sales value = $300 Discount rate = 1%
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: The entry to record the receipt of payment within the discount period on a sale of $2400 with terms…
A: A firm makes sales to its customer and allows a discount for making payment early. The discount on…
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: Here is a bill from a credit card company that a credit card user received: May 1: Unpaid Balance =…
A: Total Amount Due = Beginning Balance + Purchases made - Payments received + Finance charges (If any)
Q: Which one of the following journal entry is Correct on 1st January 2020? a. Debit Purchase OMR…
A: Ans. In case of credit purchases, the purchase is debited and the accounts payable or the due amount…
Q: The entry to record a sale of P7,500 with terms of 2/10, n/30 would include a. Debit to sales for…
A: Note: 2/10, n/30: Here, 2 represents the discount rate if payment is made within ten days. And if…
Q: On July 1, 2020, Suzan Corp. sells electronic merchandise on account to Sam Inc. for $45,000, terms…
A: The account receivables are referred to as the amount that a business has to collect from its…
Q: BSU Food Processing Center was authorized to sell various Food products. They sold this products on…
A: 5/5/1 discount term means that first 5% discount will be given , after deducting that discount , 5%…
Q: For each transaction, indicate whether the receivables should be reported as accounts receivable,…
A: Note Reeivable: Note receivable is an instrument gives the holder right to receive the amount…
Q: Bramble Corp. made a $26200 sale on account with the following terms: 3/10, n/30. If the company…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On 1 May, the accounts receivable subsidiary ledger of Gerome Ltd had the following balances:…
A: Balancing of account refers to after posting into the ledger, the next step to ascertain the net…
Q: The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit (RM)…
A: The trial balance is given with adjustments. We have to prepare financial statements Profit and Loss…
Q: Pharoah Company has a balance in its Accounts Payable control account of $8,460 on January 1, 2022.…
A: Accounts payable: Amount due to the supplier on purchases made on account are called accounts…
Q: Soriano Corp.’s accounts receivable subsidiary ledger shows the following information: Customer…
A: In the given question, the company’s accounts receivable from different customers is presented. The…
Q: AG Inc, made a €10,000 sale on account with the following terms: 1/15, n/30If the company uses the…
A: 1/15 net 30 means 1% discount will be there if payment is made with in 15 days and no discount after…
Q: When examining the accounts of Palma Company, you ascertain that balance relating to both…
A: Accounts receivable represents the amount that is collectible from the customer for the goods sold…
Q: 3. The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit…
A: Answer:
Q: On January 12th, Gates Gems returned merchandise they received on account from Gem Warehouse in the…
A: Here in this question, we are required to pass journal entry to reverse purchase made previously.…
Q: On March 31, 2021, Jana Company sold $50,000 merchandise to one of her customers using a credit…
A: Here we assume this is not immediate payment from credit card bankers. Journal entry for credit…
Q: When examining the accounts of Palma Company, you ascertain that balance relating to both…
A: 1. Accounts Receivable = Debit balance 39,550 Accounts Receivable - customers…
Q: Sales-related transactions, including the use of credit cards Journalize the entries for the…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: Accounts Receivable-Red, debit P10,000; Sales, credit P10,000 following entries does Black make to…
A: FOB shipping point means seller is responsible for the goods till the goods is ready to be shipped.…
Q: 52. On July 9, 2021, Entity A collects its sales on account from a customer in the amount of P48,750…
A: Total sales = amount received / (1 - discount rate) = 48750 / (1 - 0.025) = P50,000
Q: BSU Food Processing Center was authorized to sell various Food products. They sold this products on…
A: Trade discount rate = 1 - (1-0.05)*(1-0.05)*(1-0.01) = 10.6525%
Q: On September 1, 2021, Lily Company had an initial accounts receivable control account balance of…
A: A subsidiary company can be defined as owned, managed or controlled by another company. The stake…
Q: On March 3, Vaughn Manufacturing sells $723,600 of its receivables to Western Factors Inc. Western…
A: Journal entry: This is the first step to record accounts. It is written in the same order in which…
Q: The business made a sale of OMR 21000 ( cost was OR 18000), on credit basis. The effect on Account…
A: Sale of goods and services in the business can be made for cash or on credit. In cash sales, amount…
Q: On June 30, Parrott Company sold goods for $800 on account. The journal entry to record the…
A: SOLUTION- JOURNAL ENTRIES IS THE WRITTEN RECORD OF A BUSINESS TRANSACTION IN A DOUBLE ENTRY…
Q: If Abby INC sells items to a customer who uses a credit card for $1100 and there is a credit card…
A: Credit card expense=Amount used×Fee percentage=$1,100×1.5%=$16.5 or $17 The credit card expense is…
Q: 1. On September 1, 2021, Lily Company had an initial accounts receivable control account balance of…
A: Accounts receivable (AR) includes the amount which the debtors of the entity have to give for the…
Q: A company sells merchandise on account, to be paid by the customer within 30 days. This transaction…
A: Under double entry accounting system, journal entries contain debit and credit columns. These…
Q: - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 610 RETURNS ON SALES 1.000 191 DEDUCTIBLE VAT 180 100…
A: Discounting of goods: It refers to the amount of reduction from selling price of goods.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- question General ledger Debit Credit Balance 01.11.20 50,000 31.12.20 Rental Revenue 6000 56,000 31.12.20 Rental Revenue 1800 57,800 01.01.21 Rental Revenue 6,000 51,800 Kindly show me the T Accounts for the above general ledger.4. B Corp.’s accounts receivable subsidiary ledger shows the following information: Customer Account BalanceDecember 31, 2022 Sales Invoices Date Amount Pray Inc. P 35,180 12/6/2022 P 14,000 11/29/2022 21,180 Patience Co. 20,920 9/27/2022 12,000 8/20/2022 8,920 Love Corp. 30,600 12/8/2022 20,000 10/25/2022 10,600 Happy Co. 45,140 11/17/2022 23,140 10/9/2022 22,000 Kindness Corp. 31,600 12/12/2022 19,200 12/2/2022 12,400 Gentleness Inc. 17,400 9/12/2022 17,400 The estimated bad debts rates below are based on BB’s receivable collection experience. Age of Accounts Rate 0 -30 days 1.00% 31- 60 days 1.50% 61-90 days 3.00% 91 - 120 days 10.00% over 120 days 50.00% The allowance for bad debts had beginning balance of P6,500. Statement 1: The net realizable value of the accounts receivable at December 31, 2022 is P165,170. Statement 2:…When a company makes a sale and accepts a credit card payment from a customer, the company: Multiple Choice debits Cash. credits Accounts Receivable. credits Cash. debits Accounts Receivable. < Prev 29 of 50 Next T:T
- Problem 1 The following summarizes the transactions recorded in the Accounts receivable – trade account of Pratt Corporation: Accounts Receivable – Trade Balance forwarded, net of P9,000 credit balance Charge sales .... Charge for consignment sales Shareholders' subscriptions Receipts from customers, including overpayment of P10,000 106,000 1,250,000 | Write offs ... 25,000 Merchandise returns 1,240,000 7,000 5,500 60,000 Allowance to customers for Recovery of previous write-offs Refunds to customers with credit balances ... 5,000 5,000 | Collection on subscription 50,000 shipping damages Collections on carrier claims 3,000 2,000 45,000 Deposit on contract Claim against common carrier for shipping damages IOUS from employees Cash advances to affiliate Advances to supplier 5,000 1,000 50,000 10,000 Audit notes: a) It was ascertained that half of the adjusted outstanding accounts receivable – trade balance are still currently collectible. The term of sale is 5/30, n/60. Based on past…9 - CODE AND NAME OF THE ACCOUNT WILL BE DEBT 610 RETURNS ON SALES 1.000 191 DEDUCTIBLE VAT 180 100 CASE 1180 Which process does the registration belong to?A) The customer returns the goods he receivedB) The seller returns the goodsC) Discounting to the customerD) The business returns the goods it has receivedE) Discounting on goods soldChapter 8 Questions to practice BE8-1 Presented below are three recei\ailes transactions. Indicate whether these recei\. ables are reported as accounts recei\able, notes recei\-able, or other receivables on a state- ment of6nancial position. (a) Sold merchandise on account forW64,000,000 to a customer. (b) Received a promissory note ofW57,000,000 for senicn perfonned. (c) Ad\-anced W8,000,000 to an employee.
- Activity 2 Directions: Compute the uncollectible account expense using the percent of accounts receivable method. The following information needed in the computation of uncollectible accounts expense for March 2021 is available for Parkland Enterprises: Sales Cash Sales Accounts Receivable-ending 200,000.00 50,000.00 5,000.00 Assume that the company decided that five percent (5%) of accounts receivable are deemed uncollectible.Ameen LLC sold goods of OMR 7150 on account. The entry to record the sales the entry will be Select one: a. Debit to Accounts Payable A/C and Credit to Purchases A/C. O b. Debit to Purchases A/C and Credit to Accounts Payable. O c. Debit to Sales A/C and Credit to Accounts Receivable. O d. Debit to Accounts Receivable A/C and Credit to Sales A/C.Purchases Transactions Barans Company purchased merchandise on account from a supplier for $7,100, terms 2/10, n/30. Barans Company returned $1,100 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. What account is credited by Barans Company to record the return?
- The contra revenue account that represents the reduction in the amount paid by a credit customer if payment is made within a specified period of time is known as which of the following: O Contra revenue account O Sales allowance account O Sales discount account O Allowance for uncollectible accounts ASUS f3 f4 f5 f6 f7 f8 f9 f10 f11 区 ロ/京 %24 & 3 4. 7. 8 9. 01 Y U G H. J K 16 5 图The entry to record a sale of P7,500 with terms of 2/10, n/30 would include a. Debit to sales for P7,350 b. Debit to sales Discount for P150 c. Credit to Accounts Receivable for P7,500 d. Credit to sales for P7,500Tanger Company has three customers: E, F, and G. The beginning accounts receivable subsidiary ledger of customers F and G have $2,600 and $1,500, respectively. The beginning Accounts Receivable balance in the general ledger is $12,000. Calculate the ending amount in the accounts receivable subsidiary ledger account of customer E, if customer E also made a $3,900 payment. OA. $4,000 OB. $3,900 OC. $1,500 OD. $2,600