Direct Write-Off MethodWilliams & Hendricks Distributors uses the direct write-off method in accounting foruncollectible accounts.20-1Feb.Sold merchandise on account to Merry Merchants, $17,500.18Mar.Sold merchandise on account to Utter Unicorns, $14,300.22June Received $10,000 from Merry Merchants and wrote off the remainder owed on the3 sale of February 18 as uncollectible.Received $8,000 from Utter Unicorns and wrote off the remainder owed on the saleSept.of March 22 as uncollectible.Nov. Reinstated the account of Merry Merchants, which had been written off on June 3,13 and received $7,500 cash in full settlement.20-2Jan. Reinstated the account of Utter Unicorns, which had been written off on September9 of the previous year, and received $6,300 cash in full settlement.17 Required:1. Record these transactions in general journal form.Page:DOC. POST.NO. REF.DATEACCOUNT TITLEDEBITCREDIT20-11Feb. 18Accounts Payable/Merry Merchants♥17,5002Sales17,500 23Sold merchandise on account34Mar. 22 Accounts Receivable/Utter Unicorns14,30056Sales14,3006.7Sold merchandise on accountJun. 39.101011Collection on account11121213 Jun. 313141415Wrote off uncollectible account15161617 Sept. 917181819Collection on account19202021 Sept. 921222223Wrote off uncollectible account23242425 Nov. 1325262627Reinstated account receivable27282829 Nov. 1329303031Collection on account31323220-233Jan. 1733343435Reinstated account receivable35363637 Jan. 1737383839Collection on account39I II

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Description: Direct Write-Off MethodWilliams & Hendricks Distributors uses the direct write-off method in accounting foruncollectible accounts.20-1Feb.Sold merchandise on account to Merry Merchants, $17,500.18Mar.Sold merchandise on account to Utter Unicorns, $1

Under direct write off method, the bad debt expense is not estimate and allowance is not created for…

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Direct Write-Off Method Williams & Hendricks Distributors uses the direct write-off method in accounting for uncollectible accounts. 20-1 Feb. Sold merchandise on account to Merry Merchants, $17,500. 18 Mar. Sold merchandise on account to Utter Unicorns, $14,300. 22 June Received $10,000 from Merry Merchants and wrote off the remainder owed on the sale of February 18 as uncollectible.

Direct Write-Off Method Williams & Hendricks Distributors uses the direct write-off method in accounting for uncollectible accounts. 20-1 Feb. Sold merchandise on account to Merry Merchants, $17,500. 18 Mar. Sold merchandise on account to Utter Unicorns, $14,300. 22 June Received $10,000 from Merry Merchants and wrote off the remainder owed on the sale of February 18 as uncollectible.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...

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The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.
Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash, indicating the ending balance. Assume no beginning balances in Accounts Payable and Inventory, and a beginning Cash balance of $21,220. A. purchased merchandise inventory on account, $9,900 B. paid vendors for part of inventory purchased earlier in month, $6,500 C. purchased merchandise inventory for cash, $4,750
Post the following November transactions to T-accounts for Accounts Payable and Inventory, indicating the ending balance (assume no beginning balances in these accounts). A. purchased merchandise inventory on account, $22,000 B. paid vendors for part of inventory purchased earlier in month, $14,000 C. purchased merchandise inventory for cash, $6,500
The following transactions were completed by Nelsons Boutique, a retailer, during July. Terms of sales on account are 2/10, n/30, FOB shipping point. July 3Received cash from J. Smith in payment of June 29 invoice of 350, less cash discount. 6Issued Ck. No. 1718, 742.50, to Designer, Inc., for invoice. no. 2256, recorded previously for 750, less cash discount of 7.50. July 9Sold merchandise in the amount of 250 on a credit card. Sales tax on this sale is 6%. The credit card fee the bank deducted for this transaction is 5. 10Issued Ck. No. 1719, 764.40, to Smart Style, Inc., for invoice no. 1825, recorded previously on account for 780. A trade discount of 25% was applied at the time of purchase, and Smart Style, Inc.s credit terms are 2/10, n/30. 12Received 180 cash in payment of June 20 invoice from R. Matthews. No cash discount applied. 18Received 1,575 cash in payment of a 1,500 note receivable and interest of 75. 21Voided Ck. No. 1720 due to error. 25Received and paid utility bill, 152; Ck. No. 1721, payable to City Utilities Company. 31Paid wages recorded previously for the month, 2,586, Ck. No. 1722. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.