any received an invoice for $3,647.00 dated March 8 with terms 2/10, n/30. The company paid the bill March 15. What amount should be paid?
Q: REQUIRED Use the information provided below to prepare the Cash Flow Statement of Nascar Limited for…
A: Two questions are posted. As per the policy, the first one will be answered. The Cash flow…
Q: Q3. HERE COME THE CLOWNS! is the name of a traveling circus. The ledger accounts of the business at…
A: A BALANCE SHEET IS A FINANCIAL STATEMENT THAT GIVES YOU A SNAPSHOT OF YOUR COMPANY'S FINANCIAL…
Q: Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $25 per…
A: Lets understand the basics. Income statement is prepared under two method which are, (1) Variable…
Q: The accountant for ABX Limited compiled the following cost information regarding the budgetary…
A: Cash budget is a statement which provides an estimation about the cash receipts and cash payments…
Q: Debentures are frequently issued at amounts greater or less than face value. Discuss how the market…
A: The market rate of interest is the rate of interest that is currently being offered in the market…
Q: The following data from the just completed year are taken from the accounting records of Mason…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Describe the difference between a static and a flexible budge
A: A budget is said to be static if it employs forecasted amounts for a certain time period before that…
Q: Employers should have documentation that employees have agreed to all employer compulsory and…
A: In the company there are many transactions done, so the company should have written records or…
Q: Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: Glover Corporation purchased bonds with a face value of $300,000 for $307,493.34 on January 1, 2019.…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: O miles over its estimate
A: Answer :Straight line method depreciation = (Purchase cost - Salvage value) / Useful life
Q: The following data were collected from the financial statements of Jensen Limited: Dividends ($)…
A: The dividends are paid either paid on equity shares or preferred shares. The dividend payout ratio…
Q: compensation expense. Cirque Capital's balance sheet on the day Dave received his capital interest…
A: The full name of LLC is a Limited liability company. It's a form of company that secures its owners…
Q: On 30 September 2022, Piston Limited had a balance in its 'Cash in Bank' general ledger account of…
A: A bank reconciliation statement is prepared by the company for any time period to reconcile their…
Q: income tax
A: Every taxpayer (individual as well as entities) has to file taxes on taxable income. However, tax…
Q: Sand Company provided the following data at current year-end: Preference share capital, P100 par,…
A: The term "preference shares" refers to stock in a firm that pays dividends to stockholders ahead of…
Q: 2. Money Market Hedge on Receivables Assume that Parker Company will receive 200,000 Canadian…
A: Interest Rate - The fee that a lender assesses on a borrower is known as the interest rate, which is…
Q: Required: Prepare closing entries TPR had one major creditor at the beginning of 2020_ One of the…
A: Closing Journal Entries A journal entry that is produced at the end of the reporting period is a…
Q: Primare Corporation has provided the following data concerning last month’s manufacturing…
A: Cost of goods manufactured means the cost which is incurred on the making of the goods. It includes…
Q: From the French Instrument Corporation second-quarter report ended 2020, do a vertical analysis for…
A: Introduction:- As per vertical analysis in income statement measures, Each very item of income…
Q: Cullumber Company borrowed $313,000 on January 1, 2022, by issuing a $313,000, 10% mortgage note…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Scholastic Furniture, Inc., manufactures a variety of desks, chairs, tables, and shelf units that…
A: A plan that is written down and followed to determine how one will spend money on a monthly basis is…
Q: 00 in 2017. 70 shares for $2,250 in 2018. 80 shares for $2,675 in 2019. They sold 160 shares of…
A: Answer :The basis used in the sale of share is FIFO basis. In FIFO method it is assumed that first…
Q: Sigman Company's inventories in process were at the following stages of completion at April 30:…
A: No. of Units Percent Complete Equivalent units 260 90…
Q: Case X: Case Y: Case Z: Compute cash received from customers Sales Case X: Case Y: Case Z: Accounts…
A: The collecting of money (cash) from your clients is what is referred to as cash receipts. The cash…
Q: On March 1, 2022 a company paid $30,000 in advance for a one-year insurance policy. What adjusting…
A: Adjusting entry is prepared in accordance with the matching principle for amount related only to the…
Q: Inventory valuation methods are based on the systematic cash flow of adding and removing inventory…
A: FIFO and LIFO are the two most prominent method of inventory valuation. Under FIFO, the inventory…
Q: Partners Thelma Lou and Aunt Bee each have a $50,000 capital balance and share profits and losses in…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: PR 14-3A Bond premium, entries for bonds payable transactions O’Halloran, Inc. produces and sells…
A: The journal entries are prepared to record the transactions of the business on regular basis. The…
Q: Mechforce, Incorporated had net income of $158,900 for the year ended December 31, 2022. At the…
A: Number of common shares issued is the common stock. Treasury stock is the shares repurchased.…
Q: William needs to show his supervisor how COGS, as reported on the company's income statement, might…
A: Variable costing is a method of costing where the variable costs are considered only and the fixed…
Q: Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company…
A: The budget for direct labor is often supplied either monthly or quarterly, depending on which format…
Q: Exercise 10-14 Ordinary repairs, extraordinary repairs, and betterments LO C3
A: A fixed asset is required to be depreciated over a period of time for its uses. The depreciation…
Q: REQUIRED Use the information provided below to prepare the Cash Flow Statement for the year ended 30…
A: Introduction The word "depreciation" is a financial technique used to spread out the expense of a…
Q: st layer out under LIF
A: Date Purchase Cost of good sold Inventory Qty. Cost Total cost Qty. Cost Total cost…
Q: Corporation C is a wholesaler that sells a single product. Management has provided the following…
A: Solution: Correct answer : (c) P112,230 Variable cost of sale = Change in cost / change in activity…
Q: Explain the conclusions concerning Jensen Limited that can be drawn from the dividend payout ratios…
A: Dividend payout ratio is the rate of profits distributed by the company as dividend among the…
Q: The income statement for Bradford Machine Company for 2019 appears below. BRADFORD MACHINE COMPANY…
A: Break even point is the one at which the company do not earn any revenue. It could just cover its…
Q: Calculate the following financial ratios for Phone Corporation: Note: Use 365 days in a year. Do not…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: ty Company expects sales for the first three months of next year to be $205,000, $240,000 and…
A: Schedule of cash collection includes collection of sales based on their % of collection in…
Q: Warranty expense should be recorded in the period: that the product is repaired or replaced. O the…
A: The income statement is prepared to record the revenues and expenses of the current period. The net…
Q: In 2022, Carson is claimed as a dependent on his parents' tax return. His parents report taxable…
A: Taxable liability is the amount in the form of tax debt you owe to tax authorities.It is the total…
Q: Which of the following statements is true for real rental property that has been depreciated using…
A: Which of the following statements is true for real rental property that has been depreciated using…
Q: 5. Roy Edwards is a resident individual. During the year of assessment 2014 he had income from…
A: Liability - The term "liability" can refer to any sum of money or service owing to another party and…
Q: [The following information applies to the questions displayed below.] FreshPak Corporation…
A: The production overhead budget includes all expenses that a manufacturing company or department will…
Q: Nolan Company's cash account shows a $26,426 debit balance and its bank statement shows $25,694 on…
A: Bank Reconciliation is prepared to reconcile the balances of cash book with that of the bank…
Q: Use the Information provided below to prepare the statement of comprehensive income for the year…
A: Statement of Comprehensive Income Regular operating earnings and other statement of income are both…
Q: Prepare the income statement for 2020 TPR had one major creditor at the beginning of 2020. One of…
A: Income statement is that basic financial statement that a company prepares for the purpose of…
Q: Which of these are financial statements used by business entities to report the financial position…
A: Business entities are the business organizations which are created for running the business. These…
Q: Compare and contrast the allowance and direct write off method for uncollectible receivables.
A: Allowance Method The allowance method is the most common method used to account for uncollectible…
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
A local company received an invoice for $3,647.00 dated March 8 with terms 2/10, n/30. The company paid the bill March 15. What amount should be paid?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.Nido Co. has a standing agreement with a supplier for purchasing car parts. The terms of the agreement are 3/15, n/30 from the invoice date of September 1. The company makes a purchase on September 1 for $5,000 and pays the amount due on September 13. What amount does Nido Co. pay in cash on September 13? A. $5,000 B. $4,850 C. $150 D. $4,250
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
- On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalOn December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.Your company paid rent of $1,000 for the month with check number 1245. Which journal would the company use to record this? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
- Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500On September 30, Cody Companys selected account balances are as follows: In general journal form, prepare the entries to record the following: Oct. 15Payment of liabilities for FICA taxes and the federal income tax. 31Payment of liability for state unemployment tax. 31Payment of liability for federal unemployment tax.The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?