Concept explainers
Case summary:
Individual R, a later back graduate, is arranging to go into the discount building supply trade with his brother, individual J, who majored in building construction. The firm would offer basically to common contractors, and it would begin working another January. Deals would be moderate amid the cold months, rise amid the spring, and at that point drop off once more within the summer, when modern construction in the region moderates. The terms of the deal are net 30 but, since of uncommon motivating forces, the brothers anticipate 30% of the customers (by dollar esteem) to pay on the 10th day taking after the sale, 50% to pay on the 40th day, and the remaining 20% to pay on the 70th day. No bad-debt misfortunes are expected since of individual J, the building development master, knows which temporary workers are having monetary issues.
To determine: The uncollected balances schedule and whether this schedule properly determines clients’ payment pattern.
Want to see the full answer?
Check out a sample textbook solutionChapter 22 Solutions
Intermediate Financial Management (MindTap Course List)
- What is reginalds check account balance at the end of December?arrow_forwardCalculate what the revenue would be on the Income Statement for March Calculate what the deferred revenue would be on the Balance Sheet for March Explain what happens to revenue and deferred revenue as the months' progress. Explain when revenue can be recognized and why.arrow_forwardHello, I'm looking for help with trial balance for each months end cutoff for the following transactions.arrow_forward
- Using the table, what is the average daily balance of the credit card for the December 1 - December 31 billing period? Round your answer to the nearest cent. Day Activity Adjustment Closing Balance 1 -- -- 9,500 6 Purchase +500 10,000 16 Purchase +1,250 11,250 21 Purchase +3,000 14,250arrow_forwardFor the credit card account, assume one month between billing dates (with the appropriate number of days) and interest of 1.5 % per month on the average daily balance. Find (a) the average daily balance, (b) the monthly finance charge, and (c) the account balance for the next billing. Previous Balance: $449.12 January 10 Billing Date January 12 Returns $102.72 January 21 Clothes $117.41 January 25 Bus tickets $76.64 February 2 Payment $135 February 8 Flowers $56.23 (a) The average daily balance is $arrow_forwardLizzie Gunderson is trying to establish a credit history and has a Visa charge card. She received a September 3 statement that shows a balance of $254.80 from the previous month. The statement shows the following transactions: payment on September 12 of $50, charge on September 15 of $35.18, charge on September 20 of $120, and a final charge on October 2 of $14.60. Calculate the average daily balance for September.arrow_forward
- Determine the expected collections on its receivable for the month of June. Indicate the amounts collected in June for sales in April, May, and June, respectively. (requires 4 answers: April, May, June and Total Amount)arrow_forwardGuardian Services Inc. had the following transactions during the month of April: a. Record the June purchase transactions for Guardian Services Inc. in the following purchases journal format: b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April? c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1?arrow_forwardFitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?arrow_forward
- Global Services Company had the following transactions during the month of August: a. Record the August revenue transactions for Global Services Company into the following revenue journal format: b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for August? c. What is the August 31 balance of the Morgan Corp. customer account assuming a zero balance on August 1?arrow_forwardCatherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?arrow_forwardKelley Company has completed the following October sales and purchases journals: a. Total and post the journals to T accounts for the general ledger and the accounts receivable and accounts payable ledgers. b. Complete a schedule of accounts receivable for October 31, 20--. c. Complete a schedule of accounts payable for October 31, 20--. d. Compare the balances of the schedules with their respective general ledger accounts. If they are not the same, find and correct the error(s).arrow_forward
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningCollege Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub