
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- On April 25, Richards Electric installs wiring in a new home for $2,800 on account. However, on April 27, Richards’s electrical work does not pass inspection, and Richards grants the customer an allowance of $530 because of the problem. The customer makes full payment of the balance owed, excluding the allowance, on April 30. Required: 1. 2. & 3. Record the journal entries for the above information. 4. Calculate net sales reported in the income statement.arrow_forwardA fast food restaurant sells gift cards, which may be redeemed at any time; however, they expire in one year. At the time these gift cards are sold, the account to be credited is called _________. a. accounts payable b. accounts receivable c. interest payable d. sales tax payable e. unearned sales revenye f. wages payablearrow_forwardApplying the direct write-off method to account for uncollectible Susan Knoll is an attorney in Los Angeles. Knoll uses the direct write-off method to account for uncollectible receivables. At January 31, 2016, Knoll’s accounts receivable totaled $18,000. During February, she earned revenue of $21,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,050 on February 29, 2016. Requirements Use the direct write-off method to journalize Knoll’s write-off of the uncollectible receivables. What is Knoll’s balance of Accounts Receivable at February 29, 2016?arrow_forward
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