ACCOUNTS RECEIVABLE Problem 1: Contra-Revenues and Other Issues Record the following transactions: 1. Sold goods with a selling price of $1,000 and cost of $750 with terms FOB Shipping Point, 2/10, n/30. 2. Goods in #2 arrived at buyers. 3. Buyer in #1/#2 paid within the discount period. 4. Sold goods with a selling price of $500 and cost of $275 with terms FOB Destination 2/10,n/30. Goods were shipped immediately. 5. Goods in #4 arrived at buyers. 6. Goods in #4/#5 were returned. They were undamaged and in salable condition. 7. Sold goods with a selling price of $5800 and cost of $3,600 with terms FOB Destination 2/10,n/30. Goods were shipped immediately. 8. Goods in #7 arrived at buyers but arrived 2 days late negatively impacting the buyers manufacturing process. 9. Customer in #8 received a $500 credit on his purchase. Goods were shipped immediately. The customer complained.... a lot.
ACCOUNTS RECEIVABLE Problem 1: Contra-Revenues and Other Issues Record the following transactions: 1. Sold goods with a selling price of $1,000 and cost of $750 with terms FOB Shipping Point, 2/10, n/30. 2. Goods in #2 arrived at buyers. 3. Buyer in #1/#2 paid within the discount period. 4. Sold goods with a selling price of $500 and cost of $275 with terms FOB Destination 2/10,n/30. Goods were shipped immediately. 5. Goods in #4 arrived at buyers. 6. Goods in #4/#5 were returned. They were undamaged and in salable condition. 7. Sold goods with a selling price of $5800 and cost of $3,600 with terms FOB Destination 2/10,n/30. Goods were shipped immediately. 8. Goods in #7 arrived at buyers but arrived 2 days late negatively impacting the buyers manufacturing process. 9. Customer in #8 received a $500 credit on his purchase. Goods were shipped immediately. The customer complained.... a lot.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 34E
Related questions
Question
100%
Part 1: Prepare
Part 2: Accounting for
- Prepare T-Accounts for A/R; Allowance for Doubtful Accounts and Bad Debt Expense
- Put beginning balances that are given in these accounts.
- Record Journal Entries for Current Year Activity
- Post the JEs Activity to T-accounts above.
- Prepare
Adjusting Journal Entries for "a" and "b" based on the assumptions given in "a" and "b" - Indicate the following information that would appear on the financial statements under "a" and "b"
Accounts Receivable - Allowance for Doubtful Accounts
- Net realizable A/R --- (just subtract the two above)
- Bad Debt Expense
Thank you
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