Journalize the following entries on the books of both Campbell Co, and Costello
ID: 2482867 • Letter: J
Question
Journalize the following entries on the books of both Campbell Co, and Costello Co, for November 1. December 1, December 31, and March 1. Label the entries accordingly. Nov, 1 Campbell Co purchased merchandise for $60,000 on account from Costello Co., terms n/30. Dec/1 Campbell Co. issued a 90-day, 9 % note for $60,000 on account. Interest on the note. Mar 1 Campbell CO paid and amount due. On september1, Miners Inc. signed a $15,000, 90-day discounted note at the bank. The discount rate was 10 %, and the note was paid on November 30. Journalize the entries for September 1 and November 30. Assume that Miners Inc, signed a 10 % note. Journalize the entries for September 1 and November 30. Which of the two options is more favorable to the bank and why? Is the answer the same for Miners? Electronics Company sold $150,000 of kitchen appliances during September under a 6 month warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price. On October 15 a customer required a $200 part replacement, plus $85 labor under the warranty. Provide the journal entry for the estimated expense on September 30 and the October 15 warranty work. Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases. Indicate the ending balance in each ease. Credit balance of $400 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $8,500. Credit balance of $400 in the allowance account just prior to adjustment. Uncollectible accounts are estimated at 2% of sales, which totaled $1,000,000 for the year.Explanation / Answer
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Ans 32 Campbell Co date Account Title Dr Cr 1-Nov Mercandise $60,000 Accounts Payable $60,000 (Being puchases on account) 1-Dec Accounts Payable $60,000 Notes payable $60,000 31-Dec Interest Expenses (60000*9%*1/12) 450 Interest Payable 450 (Being interest expenses accured for the month) 1-Mar Notes Payable $60,000 Interest Payable 450 Interest Expense (60000*9%*3/12) 1350 Cash $61,800 (Being amount paid) Costello Co 1-Nov Accounts Receivable $60,000 Sales $60,000 (Being sales on account) 1-Dec Notes Receivable $60,000 Accounts Receivable $60,000 31-Dec Interest Receivable (60000*9%*1/12) 450 Interest Income 450 (Being interest income accured for the month) 1-Mar Cash $61,800 Notes Receivable 60000 Interest Income (60000*9%*3/12) 1350 Interest Receivable $450 (Being amount paid)Related Questions
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