EXHIBIT 7.64.1 a. Sales recorded, goods not shipped b. Goods shipped, sales not recorded C. Goods shipped to a bad credit risk customer d. Sales billed at the wrong price or wrong quantity е. Product line A sales recorded as Product line B f. Failure to post charges to customers for sales g. January sales recorded in December CONTROL PROCEDURES 1. Sales order approved for credit 2. Prenumbered shipping doc prepared, sequence checked 3. Shipping document quantity compared to sales invoice 4. Prenumbered sales invoices, sequence checked 5. Sales invoice checked to sales order 6. Invoiced prices compared to approved price list 7. General ledger code checked for sales product lines 8. Sales dollar batch totals compared to sales journal 9. Periodic sales total compared to same period accounts receivable postings 10. Accountants have instructions to date sales on the date of shipment 11. Sales entry date compared to shipping doc date 12. Accounts receivable subsidiary totaled and reconciled to accounts receivable control account 13. Intercompany accounts reconciled with subsidiary company records 14. Credit files updated for customer payment history 15. Overdue customer accounts investigated for collection

EXHIBIT 7.64.1 a. Sales recorded, goods not shipped b. Goods shipped, sales not recorded C. Goods shipped to a bad credit risk customer d. Sales billed at the wrong price or wrong quantity е. Product line A sales recorded as Product line B f. Failure to post charges to customers for sales g. January sales recorded in December CONTROL PROCEDURES 1. Sales order approved for credit 2. Prenumbered shipping doc prepared, sequence checked 3. Shipping document quantity compared to sales invoice 4. Prenumbered sales invoices, sequence checked 5. Sales invoice checked to sales order 6. Invoiced prices compared to approved price list 7. General ledger code checked for sales product lines 8. Sales dollar batch totals compared to sales journal 9. Periodic sales total compared to same period accounts receivable postings 10. Accountants have instructions to date sales on the date of shipment 11. Sales entry date compared to shipping doc date 12. Accounts receivable subsidiary totaled and reconciled to accounts receivable control account 13. Intercompany accounts reconciled with subsidiary company records 14. Credit files updated for customer payment history 15. Overdue customer accounts investigated for collection

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 6E: Record general journal entries to correct the errors described below. Assume that the incorrect...

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Record general journal entries to correct the errors described below. Assume that the incorrect entries were posted in the same period in which the errors occurred and were recorded using the periodic inventory system. a. A freight cost of 85 incurred on equipment purchased for use in the business was debited to Freight In. b. The issuance of a credit memo to Lang Company for 119 for merchandise returned was recorded as a debit to Purchases Returns and Allowances and a credit to Accounts Receivable, Lang Company. c. A cash sale of 68 to J. L. LaSalle was recorded as a sale on account. d. A purchase of merchandise from James Company in the amount of 750 with a 25 percent trade discount was recorded as a debit to Purchases and a credit to Accounts Payable of 750 each.
5. Shipments of inventory to the branch may be billed at other than cost. When billing prices are above cost, the unrealized mark-up is initially recorded by the home office a, in an "allowance" account. b. as a credit to investment in branch account. c. as an addition to the cost of "shipments to branch." d. a and c
The internal control questionnaire for purchases and accounts payable includes the following questions. Next to each of the questions, indicate the letter of the related transaction assertion.A. OccurrenceB. CompletenessC. AccuracyD. ClassificationE. Cutoff_______ 1. Are vendor's monthly statements reconciled with individual accounts payable accounts?_______ 2. Are all purchases made only on the basis of approved purchase requisitions?_______ 3. Are vendors' invoices listed immediately upon receipt?_______ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?_______ 5. Is the accounts payable customer ledger balanced periodically with the general ledger control account?_______ 6. Does the accounting manual give instructions to date purchase entries on the date of receipt of goods?_______ 7. Are shipping documents authorized and prepared for goods returned to vendors?_______ 8. Is the accounts payable department notified of goods…
The following Purchases Ledger Control Account PLCA was prepared for the year: Bal b/d 45,000 Bank 285,000 Credit Purchases * ? 145,000 Return outwards 12,500 Discount received 24,000 Bal c/d 78,500 297,500 297,500 It was suspected that there are some errors in the preparation of the PLCA, although the numerical values are correct except for the credit purchases. What would be the amount for credit purchases if the PLCA was to be written up correctly? 355,000 360,000 450,000 517,000
How should I solve this problem? 12 Issued Check No. 319 to Martin Company for merchandise purchased September 2, $8,500, terms 1/10, n/30. A credit memo had been received on September 8 from Martin Company for merchandise returned, $400. Payment is made within the discount period after deduction for the return dated September 8.
8. Bentley Manufacturing Co. uses the LIFO method of costing its inventory, which indicates that: Select one: A. Merchandise are sold in the order in which they are received B. Last merchandise purchased is sold out first C. There is no specific order in which merchandise is sold D. None of the above 9. A Credit memo is a note from a seller indicating its intent to credit a customer’s accounts receivable. Select one: True False
On December 2 a customer returned merchandise with a selling price for $1400 purchased on account to a department store ignoring cost of goods sold which journal entry should the department store prepare? Assume no discounts were offered A. Debit sales revenue for $1400 and credit accounts receivable for $1400 B. Debit sales revenue for $1400 and credit sales refund payable for $1400 C. Debit sales revenue for $1400 and credit cash for $1400 D. Debit sales refunds payable for $1400 and credit accounts receivable for $1400
I'm having trouble with the following problem from Cengage. I’m getting error messages in the journalizing for Summit Company. Included are the instructions and screenshots of my results. Please help. The following selected transactions were completed during August between Summit Companyy and Beartooth Co. Aug 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, term FOB Destination, 2/15, n/eom. The cost of the goods sold was $28,800. 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was $40,000. 9 Beartooth Co. Paid freight of $2,300 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $58,700, terms FOB shipping point, n/45. Summit paid freight of $1,675 which was added to the…
Sales-Related Transactions The selected transactions below were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Instructions: Illustrate the effects of each of the transactions on the accounts and financial statements of Affordable Supplies Co. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the income statement effects that reduce gross profit as negative amounts. Jan. 6. Sold merchandise on account, $14,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,400. Balance Sheet Assets = Liabilities + Stockholders' Equity Accounts Receivable + Inventory = No Effect + Retained Earnings Jan. 6. fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Statement of Cash Flows Income Statement No effect fill in the…
A Sales cut-off procedure for the audit of the financial statements of Carrie Corp. resulted to the following information: SALES CUT-OFF DECEMBER ENTRIES Delivery Receipt No. Delivery Date Invoice Price Remarks 125034 Dec. 26 9,600 FOB Destination 125035 Dec. 26 10,200 FOB Shipping Point 125036 Dec. 27 8,400 FOB Destination (In-Transit) 125037 Dec. 28 22,000 Shipped to Consignee 125039 Dec. 29 6,500 FOB Shipping Point (In-Transit) 125040 Dec, 30 8,800 FOB Shipping Point 120541 Dec. 30 7,200 Free Alongside the Vessel JANUARY ENTRIES Delivery Receipt No. Delivery Date Invoice Price Remarks 125042 Dec. 31 11,600 FOB Destination (In-transit) 125043 Dec. 31 8,200 FOB Shipping Point (In-transit) 125044 Jan. 2 6,600 FOB Shipping Point 125045 Jan. 2 10,000 Bill and Hold Agreement Audit Notes: Inventories were physically counted on December 29, 2021…
30-A Wholesale merchandise trader has prepared the trial balance which results an imbalance in the list of account balances was revealed which resulted in the creation of a suspense account with a Credit balance of RO 18,000. Investigations revealed that a business sold goods on Credit RO 13,000 made to Rafa Trading (Accounts receivable) has been correctly recorded in the Sales account, but posted as RO 31,000 in the debit side of Rafa Trading account. Which of the following rectification entry will be correct? a. Debit Sales RO 12,000 Credit Suspense account RO 12,000 b. Debit Rafa Trading (Accounts receivable) RO 18,000 Credit Suspense account RO 18,000 c. Debit Suspense account RO 6,000 Credit Rafa Trading (Accounts receivable RO 6,000 d. Debit Suspense account RO 18,000 Credit Rafa Trading (Accounts receivable) RO 18,000
7. The Allowance for Overvaluation account of the home office is debited:* a. When the home office ships merchandise to the branch at a billed price that exceeds cost. b. In a journal entry to close the account at the end of an accounting period. c. When the branch’s ending inventory is recorded in the home office accounting records. d. In some other circumstances. 8. Statement 1 (S1): Freight charges incurred by the branch office on merchandise inventory shipped from the home office would be included in the branch’s cost of goods available for sale even if the wrong merchandise was shipped from the home office.Statement 2 (S2): One reason why a branch office would not have a “loading” account is that the home office usually does not want the branch personnel to know the amount of unrealized profit built in to the merchandise’s transfer price. * a. S1- True; S2- True b. S1- True; S2- False c. S1- False; S2- True d. S1- False; S2- False