Comprehensive Problem 7 (Part Level Submission) On December 1, 2017, Fullerton C

Question

Comprehensive Problem 7 (Part Level Submission) On December 1, 2017, Fullerton Company had the following account balances. Debit Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Credit $18,200 Accumulated Depreciation. Equipment $3,000 6,100 50,000 14400 $73,500 2,200 Accounts Payable 7,500 Common Stock 16,000 Retained Earnings 1,600 28,000 $73,500 During December, the company completed the following transactions Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed) 12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, n/30. 17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000. 19 Paid salaries $2,200. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 91 Received $2,700 cash from customers in payment of account (no discount allowed) Adjustment data: 1. Depreciation $200 per month. 2. Insurance expired $400. Your answer is partially correct. Try again.

Explanation / Answer

Journal entries

Cash

To accounts receivable

$3600

Inventory

To accounts payable

$12000

$12000

Accounts receivable

To sales

Cost of goods sold

To invetory

$16000

$10000

$16000

$10000

Salaries

To cash

$2200

$2200

Accounts payable

To cash

To inventory

$12000

$11880

$120

Cash

Sales discount

To accounts receivable

$15680

$320

$16000

Cash

To accounts receivable

$2700

$2700

Date Particulars Debit($) Credit($) December 7

Cash

To accounts receivable

$3600

$3600 12

Inventory

To accounts payable

$12000

$12000

17

Accounts receivable

To sales

Cost of goods sold

To invetory

$16000

$10000

$16000

$10000

19

Salaries

To cash

$2200

$2200

22

Accounts payable

To cash

To inventory

$12000

$11880

$120

26

Cash

Sales discount

To accounts receivable

$15680

$320

$16000

31

Cash

To accounts receivable

$2700

$2700

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