WileyPlus Brief Exercise 9- Accounting I
LBM2014
brief_exercise_9_2.docx|
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Presented below are three receivables transactions. Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance sheet.
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(a) |
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Sold merchandise on account for $64,000 to a customer. |
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(b) |
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Received a promissory note of $57,000 for services performed. |
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(c) |
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Advanced $10,000 to an employee. |
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Brief Exercise 9-5 |
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At the end of 2014, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2015, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. On March 4, 2015, Carpenter Co. receives payment of $6,200 in full from Megan Gray. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Account Titles and Explanation |
Debit |
Credit |
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(To reverse write-off) |
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(To record collection from Gray) |
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Brief Exercise 9-10 |
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Presented below are data on three promissory notes. Determine the missing amounts. (Use 360 days for calculation.)
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Date of Note |
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Terms |
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Maturity Date |
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Principal |
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Annual Interest Rate |
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Total Interest |
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(a) |
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April 1 |
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60 days |
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$600,000 |
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6 |
% |
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$ |
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(b) |
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July 2 |
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30 days |
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90,000 |
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% |
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$600 |
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(c) |
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March 7 |
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6 months |
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120,000 |
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10 |
% |
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$ |
Warning
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Don't show me this message again for the assignment |
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Click if you would like to Show Work for this question: |
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Exercise 9-2 |
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Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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(a) |
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On January 6, Brumbaugh Co. sells merchandise on account to Pryor Inc. for $7,000, terms 2/10, n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Brumbaugh’s books to record the sale and related collection. |
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(b) |
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On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for $9,000. On February 10, Farley is billed for the amount due of $9,000. On February 12, Farley pays $5,000 on the balance due. On March 10, Farley is billed for the amount due, including interest at 1% per month on the unpaid balance as of February 12. Prepare the entries on Paltrow Co.’s books related to the transactions that occurred on January 10, February 12, and March 10. |
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No. |
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Account Titles and Explanation |
Debit |
Credit |
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(a) |
Jan. 6 |
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Jan. 16 |
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(b) |
Jan. 10 |
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Feb. 12 |
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Mar. 10 |
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Warning
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Don't show me this message again for the assignment |
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Click if you would like to Show Work for this question: |
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