E7.6 (LO 2) (Recording Sales Transactions) Presentedbelow is information from Perez Computers Incorporated.Sold $20,000 of computers to Robertson Companywith terms 3/15, n/60. Perez uses thegross method to reobrd cash discounts. Perezestimates allowances of $1,30o will be honoredon these sales.JulyPerez received payment from Robertson for the fullamount owed from the July transactions.10Sold $200,000 in computers and peripherals to TheClark Store with terms of 2/10, n/30.1730The Clark Store paid Perez for its purchase of July17.InstructionsPrepare the necessary journal entries for Perez Computers.

Definition: Journal entry: Journal entry is a set of economic events which can be measured in…

Answered: E7.6 (LO 2) (Recording Sales…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PB

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On April 4, 2021, LASTNATOBEYBE, Inc. sold goods on account to acustomer for P1,000,000, terms were 2/10, n/30. The company factoredthe accounts receivable on April 4 to a financial institution on April 14,2021. The factor charged 8% and withheld 15% of the receivablesfactored.How much is the proceeds from factoring?
On Jan. 01, 2021 Ricca Company’s accounts receivable balance is P75,000. On Jan. 13, the company sold items on credit worth P30,000 to Mr. Yuri. On Jan. 26, she has another sales worth P45,000 where 60% is on cash. On Jan. 27, he collected P12,500 from Mr. Yuri and another P5,000 the following day, Jan. 28. The related allowance for doubtful accounts has a balance of P6,000. Compute the carrying amount of accounts receivable of Ricca Company.
Mould Corporation sells to wholesalers on terms of 2/15, n/30. Mould has not cash sales but 50% of Mould's customers take advantage if the discount. Mould uses the gross profit method of recording sales and trade receivables. An analysis of Mould's trade receivables balances at December 31, 2021 revealed the following: Age Amount Collectibility 0 to 15 days 300,000 100% 16 to 30 days 180,000 95% 31 to 60 days 15,000 90% Over 60 days 7,500 P 1,500 TOTAL 502,500 In its December 31, 2021 statement of financial position, what amount should Mould report for allowance for discounts?
On Jan. 01, Ronald Co. accounts receivable balance is P50,000. On Jan. 13, the company sold items on credit worth P20,000 to Mr. Uy. On Jan. 25, he has another sales worth P45,000 where 50% is on cash. On Jan. 26, he collected P15,000 from Mr. Uy. The related allowance for doubtful accounts has a balance of P5,000. Compute the carrying amount of accounts receivable of Ronald Co. (Sample Answer: P20,000) *
Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts receivable was P2,070,000 while the allowance for doubtful accounts was a credit of P78,000. The following data are gathered. Credit Sales Writeoffs Recoveries2017 11,100,000 260,000 22,0002018 12,250,000 295,000 37,0002019 14,650,000 300,000. 36,0002020 15,000,000. 310,000 42,000Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year.Required:a. What is the percentage of credit sales to be used in computing doubtful accounts expense for 2020?b. What amount should be reported as doubtful expense for 2020?c. What amount should be reported as allowance for doubtful accounts on December 31, 2020?
On December 1, 2021, Wonder Company assigned P400,000 of accounts receivable to Woman Company as a security for a loan of P335,000. Wonder Company charged a 2% commission on the amount of the loan; the interest rate on the note was 10%. During December, Wonder collected P110,000 on assigned accounts after deducting P380 of discounts. Wonder accepted returns worth P1,350 and wrote off assigned accounts totaling P2,980. how much cash did wonder receive from woman at the time of the transfer? what is the carrying value of the account receivable assigned of december 31, 2021
December 5, 2018, PACQ Company sold P500,000 worth of inventories with trade discounts of 10%, 15%,25%, terms: 2/10, n/30. How much is debited to accounts receivable if the company uses allowancemethod in accounting for its cash discounts?
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The following transactions occurred for Salamon Co. in 2021. The beginning balance of Accounts Receivable is $200,000 and Allowance for Doubtful Accounts (ADA) has a credit balance of $10,000. Salamon recorded sales on account of $750,000. Salamon recorded cash sales of $270,000. Salamon Co. wrote off $8,000 of accounts receivable from Haar Co. that became uncollectible. Salamon Co. uses the allowance method. Salamon collected $625,000 of accounts receivable due. Salamon wrote off $2,500 of receivables from Starr that became uncollectible. Haar repaid Salamon half the amount that had been written off. (2 entries required) a. Prepare journal entries for all the above transactions b. Post the above entries to the T accounts for A/R and ADA and calculate the ending balance of each account. c. Based on the above transactions, if Salamon wants an adjusted ending balance in ADA of $14,000, prepare the necessary year end adjustment.
Tagum Inc. required additional cash for its operation and used accounts receivable to raise such needed cash, as follows: On December 1, 2021 Tagum Inc. assigned on a non-notification basis accounts receivable of P 5,000,000 to a bank in consideration for a loan of 90% of the receivables less 5% service fee on the accounts assigned. Tagum Inc. signed a note for the bank loan. On December 31, 2021, Tagum Inc. collected assigned accounts of P3,000,000 less discount of P 200,000. Tagum Inc. remitted the collections to the bank in partial payment for the loan. The bank applied first the collection to the interest and the balance to the principal. The agreed interest is 1% per month on the loan balance. Tagum Inc. sold P 1,550,000 of accounts receivable for P 1,340,000 . The receivables had a carrying amount of P 1,470,000 and were sold outright on a nonrecourse basis. Tagum Inc. received an advance of P 300,000 from Union Bank by pledging P 360,000 of accounts receivable On June 30, 2021,…
Heat incorporated repored the following data for the year ending December 31, 2021: - Accounts receivable and the allowance for doubtful account has a balance of 1,200,000 and 80,000,000 respectively at the beginning of the year. - Cash sales amounted to 900,000 - Customers who took advantage of the 2/10, n/30 terms paid 1,528,800 - Customers who did not take advantage of the discount paid 5,700,000 - Sales returns granted to credit customers amounted 320,000. - Accounts written off is 70,000. - Accounts receivable has a balance of 1,350,000 at the end of the year. Determine the amount of sales revenue under accrual basis of accounting.
Heat incorporated repored the following data for the year ending December 31, 2021: - Accounts receivable and the allowance for doubtful account has a balance of 1,200,000 and 80,000,000 respectively at the beginning of the year. - Cash sales amounted to 900,000 - Customers who took advantage of the 2/10, n/30 terms paid 1,528,800 - Customers who did not take advantage of the discount paid 5,700,000 - Sales returns granted to credit customers amounted 320,000. - Accounts written off is 70,000. - Accounts receivable has a balance of 1,350,000 at the end of the year. Determine the amount of sales revenue under cash basis.

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