b) The following information is available for A. Hausiku a sole trader registered for VAT for the month of December 2016: • Sales on credit for the month of December 2016 amounted to N$164 250 net of VAT, N$199 564 gross; • Sales returns (all credit) for the month of December 2016 amounted to N$14 200 net of VAT, N$17 253 gross; • Purchases on credit for the month of December 2016 amounted to N$105 980 net of VAT, N$128 766 gross; • Purchases returns (all credit) for the month of December 2016 amounted to N$11 200 net of VAT, N$13 608 gross; • A. Hausiku pays N$11 000 in VAT to the Collector General monthly by direct debit on the 15th of every month. The VAT liability of A. Hausiku as at 1 December 2016 was N$15 460. 2 You are required to: Prepare the appropriate T accounts to record the above entries for the month of December

b) The following information is available for A. Hausiku a sole trader registered for VAT for the month of December 2016: • Sales on credit for the month of December 2016 amounted to N$164 250 net of VAT, N$199 564 gross; • Sales returns (all credit) for the month of December 2016 amounted to N$14 200 net of VAT, N$17 253 gross; • Purchases on credit for the month of December 2016 amounted to N$105 980 net of VAT, N$128 766 gross; • Purchases returns (all credit) for the month of December 2016 amounted to N$11 200 net of VAT, N$13 608 gross; • A. Hausiku pays N$11 000 in VAT to the Collector General monthly by direct debit on the 15th of every month. The VAT liability of A. Hausiku as at 1 December 2016 was N$15 460. 2 You are required to: Prepare the appropriate T accounts to record the above entries for the month of December

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8PA: The following select financial statement information from Candid Photography. Compute the accounts...

See similar textbooks

Similar questions

Rosalie Co. uses the gross method to record sales made on credit. On June 10,2018, it made sales of P100,000 with terms 2/10, n/30 to Finley Farms, Inc. On June 19, 2018, Rosalie received payment for % the amount due from Finley Farms. Rosalie's fiscal year end is on June 30,2018. What amount will be reported in the statement of financial position for the accounts receivable due from Finley Farms, Inc. ?
In January, Lily Bhd sold goods at a quoted price of RM10,000 with a credit term of 2/10, net 90. Show the journal entries and amount to be measured in the receivables account; i）When cash discount of 2% is to be applied. ii）At initial measurement iii）During the year, a customer of Lily Bhd was deemed uncollectable. Give examples of any five situations where a debtor can be declared as Uncollectable Receivables.
Macron, a VAT registered sole trader, has the following transactions in the quarter ended 31 December 2018. Unless stated otherwise, all sales and purchases are standard rated and all figures are exclusive of VAT. Purchased goods for trade amounting to £355,000 during the quarter. Expenses: £14,000 (£2,000 is for entertaining UK customers). Total domestic sales are £280,000 including goods sold for £12,000 to Sogo Traders. The invoice issued to Sogo stated that there is a discount of 4% on sales if invoices are paid within 15 days. The invoice was actually paid 10 days after the issuance. Supplied goods amounting to £2,300 to a customer in Belgium who is VAT registered there. Goods costing £120 were taken out of inventory for private use. The replacement cost of goods was £140. Required: Compute the VAT liability of Macron
The following trial balance has been extracted from the ledger of Mr. Cole, a sole trader:Trial balance as at 31 December, 2020Particulars Debit ¢ Credit ¢Sales 138,000Purchases 82,350Travel expenses 5,200Drawings 7,800Rent, rates & insurance 6,600Postage and stationery 3,000Advertisement 1,330Salaries and wages 26,420Bad debt 8,700Investment Income 15,890Debtors 12,120 Creditors 130Cash in hand 1,700Cash at bank 1,000Inventory as at 1 January, 2020 11,800Equipment at cost 58,000Loan 19,000Capital 53,000226,020 226,020Inventory at the close of business has been valued at ¢13,500Required;Prepare an income statement for the year ending 31st December 2020 and a balance sheet as at that date.
Restin Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2017, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.
On October 4, 2008, Terry Corporation had credit sales transactions of P2,800 from merchandise having cost P1,900. The entries to record the day's credit transactions include a
On October 4, 2006, an Corporation had credit sales transactions of $4,800 from merchandise having cost $2,880. The entries to record the day’s credit transactions include a a. debit of $4,800 to Inventory. b. credit of $4,800 to Sales Revenue. c. credit of $2,880 to Cost of Goods Sold. d. debit of $2,880 to Inventory.
2. Below are the transactions for the month of October 2020 of Mrs Rose, a sole trader:Oct 2 Bought goods from Siti Enterprise on credit for RM4806 Sold goods on credit to Kiki Enterprise for RM2159 Returned good to Siti Enterprise that had cost RM6212 Bought goods from Hasif Enterprise on credit for RM39015 Kiki Enterprise returned goods which she had bought on 6 Oct for RM4518 Returned goods to Hasif Enterprise that has cost RM6520 Received cheque for RM80 from Kiki Enterprise in part payment21 Sold goods to Mimi Enterprise on credit for RM53523 Sent cheque for RM418 to Siti Enterprise26 Mimi Enterprise returned goods that she had bought on 21 Oct for RM9027 Sold goods to Kiki Enterprise on credit for RM38329 Received cheque for RM70 from Mimi EnterpriseRequired:a. Record all the transaction in the general journalb. Record the transaction in the appropriate ledger accounts and balance all the accountc. Prepare the trial balance as at 30 October 2020
Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
The following select financial statement information from Candid Photography. Compute the accounts receivable turnover ratios and the number of days sales in receivables ratios for 2018 and 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Candid Photography if industry average for accounts receivable turnover ratio is 3 times and days sales in receivables ratio is 150 days?
A summary of transactions undertaken by Wellworth Stores during the month of January 2018 are as follows: Date Transactions 2/1 Credit purchases form Allan Enterprise $72,000 (GST inclusive) 3/1 Credit sales to Jacky $36,000 (GST inclusive) 5/1 Cash sales $8,100 (GST inclusive) 7/1 Received from debtors for credit sale made in December 2017 $18,000 (GST inclusive) 11/1 Paid Allan Enterprise for credit purchases made on 2/1/2018 (GST inclusive) 14/1 Cash purchases $45,000 (GST inclusive) 16/1 Paid wages $27,000 20/1 Paid for advertisement $19,800 (GST inclusive) 21/1 Cash sales $63,000 (GST inclusive) 22/1 Paid insurance premium $4,050 (GST inclusive) 23/1 Cash sales received by EFTPOS card $90 (GST inclusive) 25/1 Purchased of office equipment by cash $2,070(GST inclusive) 26/1 Credit purchase $34,500 (GST inclusive) 28/1 Office rent for next 6 months paid in advance $37,800 29/1 Cash…
During the month of September, the following transactions occurred. The applicable sales tax rate is 6%. Sept. 2 Sold merchandise on account to Sam Larson, $1,400, plus sales tax. 7 Sold merchandise on account to David Mitchell, $1,900, plus sales tax. 12 Issued credit memorandum to Sam Larson for $689, including sales tax of $39. 22 Sold merchandise on account to Matt Feustal, $500, plus sales tax. 28 Sold merchandise on account to Ana Cardona, $850, plus sales tax. Enter the transactions in the general journal. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 Sept. 2 fill in the blank 2 fill in the blank 3 1 2 fill in the blank 5 fill in the blank 6 2 3 fill in the blank 8 fill in the blank 9 3 4 Sept. 7 fill in the blank 11 fill in the blank 12 4 5 fill in the blank 14 fill in the blank 15 5 6 fill in the blank 17 fill in the…