To determine the date of pay for purchases. Introduction: The pay for purchases determines the deadline or the maturity of the payment for the purchases made by an organization. It is an agreement between buyer and seller that clearly instruct the buyer to comply the payment date of each purchases that has been done. Solution: The buyer has to pay on 19 th June for the purchase made on 18 th June and this will be 31 s t July if the payment is at the end of the month

Question

Want to see the full answer?

Answer 1

Question

Chapter 16, Problem 16.1P

Summary Introduction

To discuss: To determine the date of pay for purchases.

Introduction:

The pay for purchases determines the deadline or the maturity of the payment for the purchases made by an organization. It is an agreement between buyer and seller that clearly instruct the buyer to comply the payment date of each purchases that has been done.

Solution:

The buyer has to pay on 19^th June for the purchase made on 18^th June and this will be 31^s^t July if the payment is at the end of the month

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Andrews and Johnson, a lawfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $100,000■ Allowance for Uncollectible Accounts, $14,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $697,000, all on accountb. Collections on account, $714,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $11,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Andrews and Johnson will report accounts receivable on its balance sheet atDecember 31, 2018.

(Learning Objective 5: Apply GAAP for uncollectible receivables) AtDecember 31, 2018, Concord Travel Agency has an Accounts Receivable balance of $87,000.Allowance for Uncollectible Accounts has a credit balance of $880 before the year-end adjustment. Service revenue (all on account) for 2018 was $800,000. Concord estimates that itsuncollectible-account expense for the year is 3% of service revenue. Make the year-end entryto record uncollectible-account expense. Show how Accounts Receivable and Allowance forUncollectible Accounts are reported on the balance sheet at December 31, 2018

(Learning Objective 4: Account for accounts receivable) Perform the followingaccounting tasks for the receivables of Able and Bowman, a law firm, at December 31, 2018.Requirements1. Set up T-accounts for Cash, Accounts Receivable, and Service Revenue. Start with thebeginning balances as follows: Cash $28,000; Accounts Receivable $103,000; and ServiceRevenue $0. Post the following 2018 transactions to the T-accounts:a. Service revenue of $705,000, all on accountb. Collections on account, $713,0002. What are the ending balances of Cash, Accounts Receivable, and Service Revenue?