Century 21 Accounting General Journal
11th Edition
ISBN: 9781337680059
Author: Gilbertson
Publisher: Cengage
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The following journal entry was found in the records of Ross Company: Debit Cash P 200; Credit Accounts Receivable P 200. Which of the following statements best describes the above transaction?
A. A customer paid P 200 on account
B. Cash services of P 200 were provided
C. Ross Company paid a supplier P 200
D. Ross Company corrected an error in a customer’s account
At Crane Company, the following errors were discovered after the transactions had been journalized and posted.
1.
A collection on account from a customer for $960 was recorded as a debit to Cash $960 and a credit to Service Revenue $960.
2.
The purchase of store supplies on account for $1,560 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190.
On July 31, the accountant for Team Shirts was reviewing items related to accounts receivable. The following information was gathered for July:
a. The beginning balance in the Allowance for uncollectible accounts was a credit balance of $600.
b. An account receivable owed by a customer in England for $250 U.S. dollars was determined to be uncollectible.
c. Credit sales for July were $12,000. The accountant for Team Shirts estimated that 4% of the sales would eventually be uncollectible.
What is the amount of bad debts expense for July? What will be the ending balance in the Allowance for uncollectible accounts?
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- Maddie Inc. has the following transactions for its first month of business. A. What are the individual account balances, and the total balance, in the accounts receivable subsidiary ledger? B. What is the balance in the accounts receivable general ledger (control) account?arrow_forwardThe bookkeeper for Nevado Company has prepared the following trial balance: The bookkeeper has asked for your help. In examining the companys journal and ledger, you discover the following errors. Use this information to construct a corrected trial balance. a. The debits to the Cash account total 8,000, and the credits total 3,300. b. A 500 payment to a creditor was entered in the journal correctly but was not posted to the Accounts Payable account. c. The first two numbers in the balance of the Accounts Receivable account were transposed when the balance was copied from the ledger to the trial balance. d. The 1,500 amount withdrawn by the owner for personal use was debited to Miscellaneous Expense by mistakeit was correctly credited to Cash.arrow_forwardBased on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Tillman Inc., which had a 590 beginning balance. In addition, there were no collections during the period. a. Set up a T account for Accounts Receivable and T accounts for the four accounts needed in the customer ledger. b. Post to the T accounts. c. Determine the balance in the accounts. d. Prepare a listing of the accounts receivable customer balances as of May 31, 20Y3.arrow_forward
- Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Sunrise Enterprises, which had a 480 beginning balance. In addition, there were no collections during the period. a. Set up a T account for Accounts Receivable and T accounts for the four accounts b. needed in the customer ledger. c. Post to the T accounts. d. Determine the balance in the accounts. e. Prepare a listing of the accounts receivable customer balances as of March 31, 2016.arrow_forwardThe revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of 625 consisting of an amount due from Aladdin Co. There were no collections during July. a. Prepare a T account for the accounts receivable customer accounts. b. Post the transactions from the revenue journal to the customer accounts and determine their ending balances. c. Prepare T accounts for the accounts receivable and fees earned accounts. Post control totals to the two accounts and determine the ending balances. d. Prepare a schedule of the customer account balances to verify the equality of the sum of the customer account balances and the accounts receivable controlling account balance. e. How might a computerized system differ from a revenue journal in recording revenue transactions?arrow_forwardDuring the month of October 20--, The Pink Petal flower shop engaged in the following transactions: Selected account balances as of October 1 were as follows: The Pink Petal also had the following subsidiary ledger balances as of October 1: REQUIRED 1. Record the transactions in a sales journal (page 7), cash receipts journal (page 10), purchases journal (page 6), cash payments journal (page 11), and general journal (page 5). Total, verify, and rule the columns where appropriate at the end of the month. 2. Post from the journals to the general ledger, accounts receivable ledger, and accounts payable ledger accounts. Use account numbers as shown in the chapter.arrow_forward
- Piedmont Inc. has the following transactions for its first month of business: A. What are the individual account balances, and the total balance, in the accounts payable subsidiary ledger? B. What is the balance in the Accounts Payable general ledger account?arrow_forwardQuantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc. Required: On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Quantum Solutions Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alliance Inc. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215…arrow_forwardA trial balance will indicate the existence of an error if: a The purchase of a typewriter for $870 is entered in the accounting records as a debit of $87 to Office Equipment and a credit of $87 to Accounts Payable. b The collection of $75 cash is recorded by a debit to Accounts Receivable and a credit to Cash. c A journal entry debiting Equipment is posted as a debit to the Building account. d A ledger account with a credit balance is listed as a debit amount in the trial balance.arrow_forward
- Janet works in the credit department handling accounts receivable transactions. At the end of each period, the allowance for uncollectible accounts has a larger and larger debit balance. What may be going wrong here? What possible corrections should be made?arrow_forwardCash received from a customer on account was debited for $160, and Accounts Receivable was credited for the same amount. The actual collection was for $610. Prepare a correct trial balance when Errors were found After Closing.arrow_forwardAn employee working on her first trial balance discovers that the Equipment account has a credit balance of $2500 and a customer's A/R account has a credit balance of $25. Based on the knowledge you have gained in this course and how account balances are recorded and increase/decrease, has the accountant made a mistake in her records or are these situations possible?arrow_forward
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