ACCOUNTING PROCESS ASSIGNMENT: PART #1 Page 3 of 9 December 20 Ninatori Fashion
ID: 2493509 • Letter: A
Question
ACCOUNTING PROCESS ASSIGNMENT: PART #1 Page 3 of 9 December 20 Ninatori Fashion Supply Corp. received goods purchased on credit from Frank Mfg Co. with an invoice for their cost of $15,800 due under terms of 2/10, n30. The companies used Allied Parcel Service for the "same-day" pick-up and delivery of the goods with FOB Shipping Point terms. #1 DATE ACCOUNT NAMES DEBIT CREDIT December 20 Ninatori Fashion Supply Corp. renewed its general liability insurance policy expiring on December 31. The company paid $42,000 cash to its insurance company in full payment of the premiums for one-year of coverage from January 1, 2017 through December 31, 2017. #2 DATE ACCOUNT NAMES DEBIT CREDIT December 21 Ninatori Fashion Supply Corp. received an invoice from Allied Parcel Service in the amount of $500, payable in 15 days, for the freight charges relative to the "same- day" pick-up and delivery of goods purchased from Frank Mfg. Co. #3 DATE ACCOUNT NAMES DEBIT CREDIT December 21Ninatori Fashion Supply Corp. returned damaged goods to Frank Mfg. Co. and received a credit of $800 for their invoice price #4 DATE ACCOUNT NAMES DEBIT CREDITExplanation / Answer
Journal entries
Date
Accounts
De bit
credit
Dec 20
purchase
15,800
To accounts payable - Frank
15,800
Dec 20
Prepaid insurance
42,000
To Cash
42,000
Dec 21
Freight in
500
To accounts payable – allied parcel
500
Dec 21
Account receivable
65,400
To Sales
65,400
Dec 21
Freight out
1,800
To Cash
1,800
Dec 22
Office supplies
8,400
To Accounts payable – Wb
8,400
Dec 23
Salary sales deptt - personnel
72,400
Administrative staff
18,800
To Cash
191,200
Dec 23
No entry
Dec 23
Sales return and allowances
3,200
To Account receivable
3,200
Dec 28
Accounts payable
15,000
To discount expense
300
To Cash
14,700
Dec 27
Bad debts
56,400
To Account receivable
56,400
Date
Accounts
De bit
credit
Dec 20
purchase
15,800
To accounts payable - Frank
15,800
Dec 20
Prepaid insurance
42,000
To Cash
42,000
Dec 21
Freight in
500
To accounts payable – allied parcel
500
Dec 21
Account receivable
65,400
To Sales
65,400
Dec 21
Freight out
1,800
To Cash
1,800
Dec 22
Office supplies
8,400
To Accounts payable – Wb
8,400
Dec 23
Salary sales deptt - personnel
72,400
Administrative staff
18,800
To Cash
191,200
Dec 23
No entry
Dec 23
Sales return and allowances
3,200
To Account receivable
3,200
Dec 28
Accounts payable
15,000
To discount expense
300
To Cash
14,700
Dec 27
Bad debts
56,400
To Account receivable
56,400
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