ehe year that Manpe had thett in the percent fron 200 to 200 of e r Con the 300n
ID: 2523245 • Letter: E
Question
ehe year that Manpe had thett in the percent fron 200 to 200 of e r Con the 300nunts reces l i the allowance for doubtfial accoutapecess of v00 each year. Commest on the trend in the percent fro the Io vable for f Manpower used the direct weite-o 1 n 2oos, in statement for bad debts expense end of 200%, if Manpower wsed the diroct wite-o met ehodwht a anunt would appear o on the balance sheet for net accounts receivable tused the dict wite-omethol, what aunt PRACTICE CASI eeivable and bad debts expense (L.G1 the following sales terms are available of a home system is $12,000. To assist ca Ultimae sells high-end audio assist customers in financing their roediate payment in full by cash cash payment at the point of sale t using a credit ingcrdit card reecivables Adiscount a. Immmediate p or 2% of the sales invoice is allowed to card. Issuing institutions charge the retailer a fee of 4% for accepting and collo of December 31, 2010, the halances in selected current asset accounts were as fallonas t of the sales invoice price within 30 days from the invoice date on an interest-free basis current asset accounts were as follows: Debit $ 800,000 Credit Cash Alowance for Doubthul Accounts $16,800 Accounts Receivable- Credit 300,000 the year 2011, the following summary transactions occurred a cash basis totaled $450,000 (before discounts). Credit card sales using bank credit cards totaled $600,000 and using nonbank credit cards totaled $200,000. e Sales on open 30-day account totaled $980,000. d Cash collections on open account were $900,000 and from nonbank credit cards were $320,000. e The $9,000 account of Ron Murphy was written off as u ncollectible. C Receved a check from Phil Reser for $6,000 in full payment of his account, which had been written off as uncollectible in September 2010. Don Johnson returned an amplifier he did not like for a credit to his account in the amount of s3.200. Johnson did not have any previous balance in his account and has agreed to apply the credit to a new amplifier, which is on special orderExplanation / Answer
Part 1:
Date
Account titles and explanations
Debit ($)
Credit ($)
a
Cash
480000
Sale
480000
(Being cash sales made)
b
Accounts receivable -nonbank credit card
200000
Accounts receivable -credit card
600000
Sale
200000
(Being Credit sales made)
c
Accounts receivable
980000
Sale
980000
(Being on account sales made)
d
Cash
900000
Accounts receivable
900000
(Beuing cash collected from open accounts)
e
Bad debt
9000
Accounts receivable
9000
(Being accounts receivable written off)
f
Cash
6000
Bad debt recovery
6000
(Being cash received from uncollectible debt)
Bad debt recovery
6000
Profit and loss account
6000
(Being bad debt recovered)
g
No entry
Part 2:
Opening
Increase
Decrease
Closing cash balance
Cash
800000
1386000
2186000
Accounts receivable
420000
980000
909000
491000
Accounts receivable
300000
800000
1100000
3777000
Less: Allowance for doubtful accounts
16800
Total current assets
3760200
Part 3:
Opening
Increase
Decrease
Closing cash balance
Cash
800000
1386000
2186000
Accounts receivable
420000
980000
909000
491000
Accounts receivable
300000
800000
1100000
Total current assets
3777000
Date
Account titles and explanations
Debit ($)
Credit ($)
a
Cash
480000
Sale
480000
(Being cash sales made)
b
Accounts receivable -nonbank credit card
200000
Accounts receivable -credit card
600000
Sale
200000
(Being Credit sales made)
c
Accounts receivable
980000
Sale
980000
(Being on account sales made)
d
Cash
900000
Accounts receivable
900000
(Beuing cash collected from open accounts)
e
Bad debt
9000
Accounts receivable
9000
(Being accounts receivable written off)
f
Cash
6000
Bad debt recovery
6000
(Being cash received from uncollectible debt)
Bad debt recovery
6000
Profit and loss account
6000
(Being bad debt recovered)
g
No entry
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.