HORNGREN'S FINANCIAL & MANAGERIAL ACCO
16th Edition
ISBN: 9781323425084
Author: MILLER-NOBLES
Publisher: PEARSON C
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Textbook Question
Chapter 8, Problem 8.21E
Journalizing credit card sales, note receivable transactions, and accruing interest
Marathon Running Shoes reports the following:
| 2016 | |
| Feb. 4 | Recorded credit card sales of $96,000, net of processor fee of 1 %. Ignore Cost of Goods Sold. |
| Sep. 1 | Loaned $23,000 to Jess Prichett, an executive with the company, on a one-year, 12% note. |
| Dec. 31 | Accrued interest revenue on the Prichett note. |
| 2017 | |
| Sep. 1 | Collected t he maturity value of the Prichett note. |
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Computing the collection period for receivables
Unique Media Sign Incorporated sells on the account. Recently, Unique reported the following figures;
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Net credit sales $594,920 $602,000
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Compute Unique’s days’ sales in receivables for 2018. (Round to the nearest day)
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Current Attempt in Progress
Carla Vista Distributors has the following transactions related to notes receivable during the last month of the year.
Dec. 1
Loaned $11,520 cash to J. Cash on a 1-year, 5% note.
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Sold goods to W. Jennings, receiving a $9,600, 60-day, 6% note.
31
Accrued interest revenue on all notes receivable.
Journalize the transactions for Carla Vista Distributors. (Credit account titles are automatically indented when the amount is entered. Do
not indent manually. Record journal entries in the order presented in the problem. Use 360 days for calculation. List all debit entries before credit
entries.)
Date
Account Titles and Explanation
Debit
Credit
The following information has been presented to you for 2018 by Wonder Projects Limited:
September
October
November
Rand
Rand
Rand
Cash revenue
200 000
220 000
240 000
Credit revenue
120 000
180 000
190 000
Purchases (all credit)
130 000
140 000
120 000
Additional information:
Collection of credit revenue: 50% in the month of invoice 30% one month after invoice
15% two months after invoice and the balance written off as irrecoverable.
Purchases are on credit and are paid for one month after the purchase, less 5%
Rent income amounts to R10 000 per The rent will increase by 8% on 1 October 2018.
A fixed deposit of R150 000 will mature on 31 October 2018. Interest of R15 000 will also be received on this
A new computer will be purchased on 3 September 2018 for R25 000
Salaries amount to R20 000 per A 10% increase will take effect on 1 October 2018.
The owner is expected to take R5 000 cash from the business on 20 October…
Chapter 8 Solutions
HORNGREN'S FINANCIAL & MANAGERIAL ACCO
Ch. 8 - Prob. 1QCCh. 8 - When recording credit card or debit card sales...Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...
Ch. 8 - What is the difference between accounts receivable...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - When dealing with receivables, give an example of...Ch. 8 - What type of account must the sum of all...Ch. 8 - Prob. 6RQCh. 8 - What are two common methods used when accepting...Ch. 8 - What occurs when a business factors its...Ch. 8 - What occurs when a business pledges its...Ch. 8 - Prob. 10RQCh. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - When using the allowance method, how are accounts...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - How does the percent- of-sales method compute bad...Ch. 8 - How do the percent-of-receivables and aging-of-...Ch. 8 - What is the difference between the...Ch. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 8.1SECh. 8 - Prob. 8.2SECh. 8 - Applying the direct write-off method to account...Ch. 8 - Collecting a receivable previously written...Ch. 8 - Prob. 8.5SECh. 8 - Applying the allowance method (percent-of-sales)...Ch. 8 - Applying the allowance method...Ch. 8 - Prob. 8.8SECh. 8 - Prob. 8.9SECh. 8 - Accounting for a note receivable On June 6,...Ch. 8 - Prob. 8.11SECh. 8 - Recording a dishonored note receivable Midway...Ch. 8 - Prob. 8.13SECh. 8 - Defining common receivables terms Match the terms...Ch. 8 - Prob. 8.15ECh. 8 - Journalizing transactions using the direct...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Journalizing transactions using the direct...Ch. 8 - Journalizing credit card sales, note receivable...Ch. 8 - Journalizing note receivable transactions...Ch. 8 - Journalizing note receivable transactions The...Ch. 8 - Journalizing note receivable transactions Like New...Ch. 8 - Evaluating ratio data Chippewa Carpets reported...Ch. 8 - Prob. 8.26ECh. 8 - Prob. 8.27APCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Using ratio data to evaluate a companys financial...Ch. 8 - Prob. 8.34BPCh. 8 - Prob. 8.35BPCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Prob. 8.40BPCh. 8 - Prob. 8.41CPCh. 8 - Prob. 8.42PSCh. 8 - Prob. 8.1CTDCCh. 8 - Paulines Pottery has always used the direct...Ch. 8 - Prob. 8.1CTFCCh. 8 - Use Starbucks Corporations Fiscal 2013 Annual...
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