Acc 101

Intermediate Accounting I

Quiz #3 (Take Home) Spring 2017

1. The following transactions affecting the accounts receivable of Wonderland Corporation took place during the year ended January 31, 2015:

Sales (cash sales of $210,270 and remaining credit)

$591,050

Cash received from credit customers, all of whom took

advantage of the discount feature of the company’s credit terms 4/10, n/30

(assume gross method for discounts is used)

303,800

Cash received from cash customers

210,270

Accounts receivable written off as worthless

5,250

Credit issued to credit customers for sales returns and allowances

63,800

(no allowance for sales returns currently set up)

Cash refunds given to cash customers for sales returns and allowances

13,318

Recoveries on accounts receivable written off as uncollectible in prior periods

(not included in cash amount stated above)

8,290

The following two balances were taken from the January 31, 2014 balance sheet:

Accounts receivable:

95,842

Allowance for doubtful accounts

9,740 (credit)

The corporation provides for its net uncollectible account losses by crediting Allowance for Bad Debts for 4.5% of ending accounts receivable.

Instructions:

1. Prepare the journal entries to record the transactions for the year ended January 31, 2015

2. Prepare the adjusting journal entry for estimated uncollectible accounts on January 31, 2015.

The following information for the month of March is available from Batters, Inc.’s accounting records:

Balance per bank statement, March 2015		$12,100
- Cash balance per books, March 31, 2015		15,295
- Deposit made on February 28; recorded by bank on March 3		3,600
- March 31, 2015 outstanding checks:
	#2346	438
	#2348	231
	#2355	107
- Bank service charge for March (not recorded yet by Betters)		54

	- NSF check of customer returned by bank	832
	- A check drawn on Moore Co. erroneously charged to Batters	275
	- A $347 check to a supplier in payment of account was
	erroneously recorded on Batter’s books as $437	?
	- Deposit made on March 31, recorded by bank April 3	2,900

Acc 101

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