Business
Engineering
Math
Science
Social Science
Intermediate Accounting: Reporting...
Solutions
Intermediate Accounting: Reporting...
Long Corporation is a fabric manufacturing company. On January 20, Long made sales to Lyndsay’s Lace in the amount of $15,000 with terms of 2/10, n/30. Lyndsay’s paid Long on January 28. Long records accounts receivable and sales using the gross price method. Prepare the related journal entries for Long.
Record the journal entries.
Accounts receivable:
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Prepare journal entries:
| Date | Account Title and Explanation | Debit | Credit |
| Â | Accounts receivable | $15,000 | Â |
| Â | Â Â Â Â Sales revenue | Â | $15,000 |
| Â | (To record the sale on credit) | Â | Â |
Table (1)
- An increase in accounts receivable (asset) is debited with $15,000.
- An increase in sales revenue (increases stockholders’ equity) is credited with $15,000.
| Date | Account Title and Explanation | Debit | Credit |
| Â | Cash (2) | $14,700 | Â |
| Â | Sales revenue (1) | $300 | Â |
| Â | Â Â Â Â Accounts receivable | Â | $15,000 |
| Â | ( To record payment received) | Â | Â |
Table (2)
- An increase in cash (asset) is debited with $14,700.
- An increase in sales revenue (increase in stockholders’ equity account) is debited with $300...
Chapter 6 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addThe following were selected from among the transactions completed by Caldemeyer Co. during the current year. Ca...
Financial Accounting
Appendix Sales-related and purchase-related transactions for buyer and seller using periodic inventory system S...
Financial & Managerial Accounting
How can reengineering of the sales order processing subsystem be accomplished using the Internet?
Accounting Information Systems
Source Documents For each of the following independent situations, give the source document that would be refer...
Managerial Accounting: The Cornerstone of Business Decision-Making
Sales-related transactions using perpetual inventory system The following selected transactions were completed ...
Financial And Managerial Accounting
SALES TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sal...
College Accounting, Chapters 1-27
Statement of cash flowsindirect method The comparative balance sheet of Merrick Equipment Co. for December 31, ...
Corporate Financial Accounting
Traditional mainstream media act as so-called gatekeepers that vet the news and decide what kind of content get...
Essentials of Business Communication (MindTap Course List)
Define the term marketing
MKTG 12:STUDENT ED.-TEXT
SCENARIO ANALYSIS Huang Industries is considering a proposed project whose estimated NPV is 12 million. This es...
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Describe how the processing of noninvoiced disbursements is handled in (a) a true voucher system and (b) a nonv...
Accounting Information Systems
Goods and services that are not sold in markets, such as food produced and consumed at home, are generally not ...
Principles of Macroeconomics (MindTap Course List)
Differentiate the six categories of marketing.
Contemporary Marketing
Which kind of stock would you expect to pay the higher average return: stock in an industry that is very sensit...
Principles of Economics (MindTap Course List)
What are three ways to reduce the negative effects of specialization?
Foundations of Business (MindTap Course List)
(Cooperatives) How do cooperatives differ from typical businesses?
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Explain the difference between saving and investment as defined by a macroeconomist. Which of the following sit...
Brief Principles of Macroeconomics (MindTap Course List)
Why is a country better off not isolating itself from all other countries? Why do we have markets, and accordi...
Principles of Microeconomics (MindTap Course List)
A Bloomberg Businessweek North American subscriber study collected data from a sample of 2861 subscribers. Fift...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Think of two teams of which you were a member—the best and the worst in terms of personal satisfaction and team...
Management, Loose-Leaf Version
BALANCE SHEET ANALYSIS Complete the balance sheet and sales information using the following financial data: Tot...
Fundamentals of Financial Management (MindTap Course List)
The first principle of economics discussed in Chapter 1 is that people face trade-offs. Use a production possib...
Essentials of Economics (MindTap Course List)
Bevs Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, p...
Financial Accounting
Free cash flow The financial statement for Nike, Inc., art provided in Appendix C al the end of the text. a. De...
Accounting (Text Only)
Classifying costs in a service company A partial list of the costs for Wisconsin and Minnesota Railroad, a shor...
Financial & Managerial Accounting
What are footings in accounting?
College Accounting (Book Only): A Career Approach
Suppose you are a director of an energy company that has three divisionsnatural gas, oil, and retail (gas stati...
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
The Bureau of Transportation Statistics Omnibus Household Survey is conducted annually and serves as an informa...
Statistics for Business & Economics, Revised (MindTap Course List)
Two firms compete in the breakfast cereal industry producing Wheat Krinkles and Rice Krinkles cereal, respectiv...
Exploring Economics
Journalize the adjustments for Newkirk Company as of August 31.
College Accounting (Book Only): A Career Approach
What is the purpose of a post-closing trial balance?
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
The cost of producing flat-screen TVs has fallen over the past decade. Lets consider some implications of this ...
Principles of Macroeconomics (MindTap Course List)
A firm is about to double its assets to serve its rapidly growing market. It must choose between a highly autom...
Fundamentals of Financial Management (MindTap Course List)
The following is a list of 12 control plans from this chapter. Control Plans A. Firewall B. Backup batteries an...
Pkg Acc Infor Systems MS VISIO CD
Yeager Company pays John Kerr a salary as an employee and also fees for work he does as an independent contract...
PAYROLL ACCT.,2019 ED.(LL)-TEXT
What is a biological asset?
Corporate Financial Accounting
Briefly describe the type of human behavior problems that might arise if budget goals are set too tightly.
Survey of Accounting (Accounting I)
Is the managerial coordination that goes on within a business firm independent of market forces? Explain your a...
Microeconomics
Give an example to illustrate each of the following: (a) constant opportunity costs and (b) increasing opportun...
Macroeconomics
Heap Company manufactures a product that passes through two processes: Fabrication and Assembly. The following ...
Cornerstones of Cost Management (Cornerstones Series)
In an equation-of-exchange framework, the price level is dependent upon the money supply, velocity, and Real GD...
Economics (MindTap Course List)
As shown in Exhibit A-9 and assuming the aggregate demand curve shifts from AD1 to AD2 the full-employment leve...
Economics For Today
How is anticipating a material requirement or need through purchasings involvement on a new-product development...
Purchasing and Supply Chain Management
