College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 9, Problem 1PB
1.
To determine
Prepare
1.
Expert Solution
Explanation of Solution
Merchandise Inventory:
Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a trader, to be sold within a year. Merchandise Inventory is a current asset account which includes all the costs incurred to acquire merchandise, and process it further for sale.
Date | Account Titles and explanation | Post.Ref | Debit ($) | Credit ($) |
March 4 | Accounts receivable | 113 | 47.25 | |
Sales | 411 | 45.00 | ||
Sales tax payable | 214 | 2.25 | ||
(To record the sale of merchandise to Company D, sales slip no.236) | ||||
March 7 | Accounts receivable | 113 | 64.05 | |
Sales | 411 | 61.00 | ||
Sales tax payable | 214 | 3.05 | ||
(To record the sale of merchandise to Company C, sales slip no.272) | ||||
March 12 | Accounts receivable | 113 | 66.15 | |
Sales | 411 | 63.00 | ||
Sales tax payable | 214 | 3.15 | ||
(To record the sale of merchandise to Company A, sales slip no.294) | ||||
March 17 | Accounts receivable | 113 | 178.50 | |
Sales | 411 | 170.00 | ||
Sales tax payable | 214 | 8.50 | ||
(To record the sale of merchandise to Company T, sales slip no.299) | ||||
March 20 | Sales returns and allowances | 412 | 36.00 | |
Sales tax payable | 214 | 1.80 | ||
Accounts receivable | 113 | 37.80 | ||
(To record the issuance of credit memo no.27) | ||||
March 21 | Accounts receivable | 113 | 247.80 | |
Sales | 411 | 236.00 | ||
Sales tax payable | 214 | 11.80 | ||
(To record the sale of merchandise to Company P, sales slip no.310) | ||||
March 22 | Sales returns and allowances | 412 | 25.00 | |
Sales tax payable | 214 | 1.25 | ||
Accounts receivable | 113 | 26.25 | ||
(To record the issuance of credit memo no.28) | ||||
March 27 | Accounts receivable | 113 | 31.50 | |
Sales | 411 | 30.00 | ||
Sales tax payable | 214 | 1.50 | ||
(To record the sale of merchandise to Company B, sales slip no.332) |
Table (1)
2.
To determine
2.
Expert Solution
Explanation of Solution
Accounts Receivable Account No: 113 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 1 | Balance | 111.22 | ||||
4 | 28.35 | 139.57 | |||||
6 | 56.70 | 196.27 | |||||
12 | 16.80 | 213.07 | |||||
16 | 109.20 | 322.27 | |||||
18 | 273.00 | 595.27 | |||||
21 | 31.50 | 563.77 | |||||
23 | 189.00 | 752.77 | |||||
24 | 26.25 | 726.52 | |||||
Table (2)
Sales tax payable Account No: 214 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 1 | Balance | 72.84 | ||||
4 | 1.35 | 74.19 | |||||
6 | 2.70 | 76.89 | |||||
12 | 0.80 | 77.69 | |||||
16 | 5.20 | 82.89 | |||||
18 | 13.00 | 95.89 | |||||
21 | 1.50 | 94.39 | |||||
23 | 9.00 | 103.39 | |||||
24 | 1.25 | 102.14 |
Table (3)
Sales Account No: 411 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 4 | 27.00 | 27.00 | ||||
6 | 54.00 | 81.00 | |||||
12 | 16.00 | 97.00 | |||||
16 | 104.00 | 201.00 | |||||
18 | 260.00 | 461.00 | |||||
23 | 180.00 | 641.00 |
Table (4)
Sales returns and allowance Account No: 412 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 21 | 30.00 | 30.00 | ||||
24 | 25.00 | 55.00 |
Table (5)
Accounts receivable ledger | ||||||
Name : Company A | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 34.22 | |||
16 | 66.15 | 100.37 |
Table (6)
Accounts receivable ledger | ||||||
Name : Company B | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 27 | 31.50 | 31.50 | |||
Table (7)
Accounts receivable ledger | ||||||
Name : Company D | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 4 | 47.25 | 47.25 | |||
Table (8)
Accounts receivable ledger | ||||||
Name : Company M | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 19.50 | |||
7 | 64.05 | 83.55 |
Table (9)
Accounts receivable ledger | ||||||
Name : Company P | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 57.50 | |||
21 | 247.80 | 305.30 | ||||
22 | 26.25 | 279.05 |
Table (10)
Accounts receivable ledger | ||||||
Name : Company T | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 17 | Balance | 178.50 | 178.50 | ||
20 | 37.80 | 140.70 |
Table (11)
3.
To determine
Prepare Company A’s schedule of accounts receivable and compare the total with accounts receivable controlling ledger.
3.
Expert Solution
Explanation of Solution
Prepare Company A’s schedule of accounts receivable:
Company A | |
Schedule of accounts receivable | |
March 31,20-- | |
Particulars | Amount in $ |
Company A | 100.37 |
Company B | 31.50 |
Company D | 47.25 |
Company M | 83.55 |
Company P | 279.05 |
Company T | 140.70 |
Total accounts receivable | 682.42 |
(Table 12)
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Chapter 9 Solutions
College Accounting (Book Only): A Career Approach
Ch. 9 - Which of the following is true about the Sales...Ch. 9 - What is the accounts receivable ledger? a. A...Ch. 9 - Using the information contained in the accounts...Ch. 9 - Prob. 4QYCh. 9 - What does the 2 in 2/10, n/30 mean? a. Pay in 2...Ch. 9 - Prob. 6QYCh. 9 - The schedule of accounts payable lists each...Ch. 9 - If the seller assumes the entire cost of...Ch. 9 - Under the perpetual inventory system, how does the...Ch. 9 - Purchases on account of merchandise for resale...
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