Question 11 of 11 - Practice Pre-Quiz_ Chapter 6
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Accounting
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Jun 12, 2024
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Account Titles and Explanation
Debit
Credit
1.
2.
At Crane Company, the following errors were discovered after the transactions had been journalized and posted.
1.
A collection on account from a customer for $810 was recorded as a debit to Cash $810 and a credit to Service Revenue
$810.
2.
The purchase of store supplies on account for $1,570 was recorded as a debit to Supplies $1,160 and a credit to Accounts
Payable $1,160.
Prepare the correcting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Related Questions
Using the sales and cash receipts journals
The sales and cash receipts journals of Caverly Office Products include the following entries:
Identify the missing information in the cash receipts journal for those transactions listed. All credit sales are terms n/30. Assume all the accounts are paid in full. Also, total the columns in the cash receipts journal and show that total debits equal total credits.
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A company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Enter A, B, or C indicating when each error should be discovered. A. When preparing the schedule of accounts payable. B. When crossfooting the purchases journal. C. When preparing the trial balance. 1. Made an addition error in totaling the Office Supplies column of the purchases journal. 2. Made an addition error in determining the balance of a creditor’s subsidiary account. 3. Posted a purchases return to the Accounts Payable account and to the creditor’s subsidiary account but did not post the purchases return to the Inventory account. 4. Correctly recorded an $8,000 purchase in the purchases journal but posted it to the creditor’s subsidiary account as an $800 purchase. 5. Posted a purchases return to the Inventory account and to the Accounts Payable account but did not post to the creditor’s subsidiary account.
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Identifying errors in special journals
For each transaction listed, identify the recording error and indicate the journal that should have been used.
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Customer deposits (prepayments) are recorded -
Select one:
a. as debits to accounts receivable for the customer
b. as negative sales invoices
C.
as credits to accounts receivable for the customer
O d. when the customer makes a partial payment on account
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A £500 cash sale was entered as a debit in the sales account and a credit in the bank
account. What type of error is this?
Select one:
A. Compensating
B. Ommission
C. Reversal of entries
O D. Original entry
E. Commission
O F. Principle
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Entries to Correct Errors
The following errors took place in journalizing and posting transactions:
a. Cash of $4,380 received on account was recorded as a debit to Fees Earned and a credit to Cash.
b. A $1,850 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable. Note: Prepare the entry to reverse the original entry
first.
Journalize the entries to correct the errors. If an amount box does not require an entry, leave it blank.
а.
b.
>
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Enter a credit balance of $38,400 as of September 1, 20Y4 in the Accounts Payable general ledger account. Place a check mark (✓) in the Posting Reference column. Post the September 18, 20Y4, transaction to the account. For those boxes in which no entry is required, leave the box blank.
Account Accounts Payable
Account No. 21
DATE
ITEM
POST.REF.
DEBIT
CREDIT
BALANCEDEBIT CREDIT
Sept. 1, 20Y4
Balance
Sept. 18, 20Y4
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Accounts Receivable
Allowance for Doubtful Accounts
Sales Revenue
1.
2.
3.
Using the data above, give the journal entries required to record each of the following cases. (Each situation is
independent.)
4.
1.
2.
3.
4.
No. Account Titles and Explanation
(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when the amount is entered. Do not indent manually.)
To obtain additional cash, Waterway factors without recourse $24,300 of accounts receivable with Stills
Finance. The finance charge is 10% of the amount factored.
To obtain a 1-year loan of $58,900, Waterway pledges $67,000 of specific receivable accounts to Crosby
Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby
Financial.
Cash
Dr.
The company wants to maintain the Allowance for Doubtful Accounts at 5% of gross accounts receivable.
Based on an aging analysis, an allowance of $5,577…
arrow_forward
Flynn Company determines that it cannot collect $8,300 of its accounts receivable from its customer, MDC. Record the
journal entry required of Flynn under (a) the direct write-off method and (b) the allowance method.
View transaction list
Journal entry worksheet
1
Record the write off under the direct write-off method.
2
Note: Enter debits before credits.
Transaction
a.
General Journal
Debit
Credit
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The internal control questionnaire for purchases and accounts payable includes the following questions. Next to each of the questions, indicate the letter of the related transaction assertion.A. OccurrenceB. CompletenessC. AccuracyD. ClassificationE. Cutoff_______ 1. Are vendor's monthly statements reconciled with individual accounts payable accounts?_______ 2. Are all purchases made only on the basis of approved purchase requisitions?_______ 3. Are vendors' invoices listed immediately upon receipt?_______ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?_______ 5. Is the accounts payable customer ledger balanced periodically with the general ledger control account?_______ 6. Does the accounting manual give instructions to date purchase entries on the date of receipt of goods?_______ 7. Are shipping documents authorized and prepared for goods returned to vendors?_______ 8. Is the accounts payable department notified of goods…
arrow_forward
At Crane Company, the following errors were discovered after the transactions had been journalized and posted.
1.
A collection on account from a customer for $960 was recorded as a debit to Cash $960 and a credit to Service Revenue $960.
2.
The purchase of store supplies on account for $1,560 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190.
arrow_forward
making currect answer.
attched files
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Using the following cash payments journal, identify each of the posting references, indicated by a letter, as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledger account, or (3) that no posting is required.
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Give Answer with Explanation
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In detail please
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A customer issued a note for an overdue account. Which of the following procedures is correct?
A. The note is credited in the general journal by a debit to accounts receivable
B. The amount will be posted to the credit side of the customer's card
C. The amount will be posted to the debit side of the customer's card
D. This will be posted to the accounts receivable general ledger on the debit side.
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Use the following to answer questions 16 - 19
For each transaction indicate whether it should:
A. increase,
B. decrease, or
C. no effect.
Credit sales
transaction cycle
Asskiabilitstockholders’ equRtøvenespenses
16. Provide services on account
17. Estimate uncollectible accounts
18. Write off accounts as uncollectible
19. Collect on account previously written off
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Jan. 23
-----Allowance Method-----
Writing Off Bad Debts
Bal.
Allowance for Doubtful Accounts......
Accounts Receivable-J. Kent
To write off an uncollectible account.
Accounts Receivable
Dec. 31 20,000
19,480
Jan. 23
520
Jan. 23
520
Allowance for Doubtful Accounts
Dec. 31 1,500
520
520
Bal.
980
Payment not Expected
Knowledge Check 01
On December 1, after making a concerted effort, management determines that it will be unable to collect $1,200 owed to it by one of
its customers. This company uses the allowance method to account for uncollectible accounts.
Prepare the necessary December 1 journal entry to write off this $1,200 uncollectible account journal entry by selecting the account
names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
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1. The column in the cash receipts journal that will always be debited is
A. cash column
B. sales discount column
C. sundry amount column
D. sales column
2. Each time an entry is recorded in the purchases journal, the credit would be entered in the
A. purchase column
B. accounts payable column
C. accounts receivable column
D. none of the above
3. Infrequent sales returns would appear in which journal?
A. sales
B. general
C. cash receipts
D. cash disbursements
4. The controlling account in the general ledger that summarizes the debits and credits to the individual
accounts in the customer's ledger is entitled
A. Accounts Receivable
B. Accounts Payable
C. Sales
D. Purchases
5. The individual amounts in the “Accounts Payable" column of the purchases journal are posted to the
appropriate account in the
A. general ledger
B. general journal
C. accounts payable ledger
D. accounts receivable ledger
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shj.4
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At Sandhill Company, the following errors were discovered after the transactions had been journalized and posted.
A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue
$870.
1.
2.
The purchase of store supplies on account for $1,510 was recorded as a debit to Supplies $1,180 and a credit to Accounts
Payable $1,180.
Prepare the correcting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
1.
2.
arrow_forward
Show correction of errors when working this out
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attched
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Each time an entry is recorded in the purchases journal, the credit would be entered in the
A. purchase column
B. accounts payable column
C. accounts receivable column
D. none of the above
arrow_forward
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Related Questions
- Using the sales and cash receipts journals The sales and cash receipts journals of Caverly Office Products include the following entries: Identify the missing information in the cash receipts journal for those transactions listed. All credit sales are terms n/30. Assume all the accounts are paid in full. Also, total the columns in the cash receipts journal and show that total debits equal total credits.arrow_forwardA company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Enter A, B, or C indicating when each error should be discovered. A. When preparing the schedule of accounts payable. B. When crossfooting the purchases journal. C. When preparing the trial balance. 1. Made an addition error in totaling the Office Supplies column of the purchases journal. 2. Made an addition error in determining the balance of a creditor’s subsidiary account. 3. Posted a purchases return to the Accounts Payable account and to the creditor’s subsidiary account but did not post the purchases return to the Inventory account. 4. Correctly recorded an $8,000 purchase in the purchases journal but posted it to the creditor’s subsidiary account as an $800 purchase. 5. Posted a purchases return to the Inventory account and to the Accounts Payable account but did not post to the creditor’s subsidiary account.arrow_forwardIdentifying errors in special journals For each transaction listed, identify the recording error and indicate the journal that should have been used.arrow_forward
- Customer deposits (prepayments) are recorded - Select one: a. as debits to accounts receivable for the customer b. as negative sales invoices C. as credits to accounts receivable for the customer O d. when the customer makes a partial payment on accountarrow_forwardA £500 cash sale was entered as a debit in the sales account and a credit in the bank account. What type of error is this? Select one: A. Compensating B. Ommission C. Reversal of entries O D. Original entry E. Commission O F. Principlearrow_forwardEntries to Correct Errors The following errors took place in journalizing and posting transactions: a. Cash of $4,380 received on account was recorded as a debit to Fees Earned and a credit to Cash. b. A $1,850 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable. Note: Prepare the entry to reverse the original entry first. Journalize the entries to correct the errors. If an amount box does not require an entry, leave it blank. а. b. >arrow_forward
- Enter a credit balance of $38,400 as of September 1, 20Y4 in the Accounts Payable general ledger account. Place a check mark (✓) in the Posting Reference column. Post the September 18, 20Y4, transaction to the account. For those boxes in which no entry is required, leave the box blank. Account Accounts Payable Account No. 21 DATE ITEM POST.REF. DEBIT CREDIT BALANCEDEBIT CREDIT Sept. 1, 20Y4 Balance Sept. 18, 20Y4arrow_forwardAccounts Receivable Allowance for Doubtful Accounts Sales Revenue 1. 2. 3. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 4. 1. 2. 3. 4. No. Account Titles and Explanation (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) To obtain additional cash, Waterway factors without recourse $24,300 of accounts receivable with Stills Finance. The finance charge is 10% of the amount factored. To obtain a 1-year loan of $58,900, Waterway pledges $67,000 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial. Cash Dr. The company wants to maintain the Allowance for Doubtful Accounts at 5% of gross accounts receivable. Based on an aging analysis, an allowance of $5,577…arrow_forwardFlynn Company determines that it cannot collect $8,300 of its accounts receivable from its customer, MDC. Record the journal entry required of Flynn under (a) the direct write-off method and (b) the allowance method. View transaction list Journal entry worksheet 1 Record the write off under the direct write-off method. 2 Note: Enter debits before credits. Transaction a. General Journal Debit Creditarrow_forward
- The internal control questionnaire for purchases and accounts payable includes the following questions. Next to each of the questions, indicate the letter of the related transaction assertion.A. OccurrenceB. CompletenessC. AccuracyD. ClassificationE. Cutoff_______ 1. Are vendor's monthly statements reconciled with individual accounts payable accounts?_______ 2. Are all purchases made only on the basis of approved purchase requisitions?_______ 3. Are vendors' invoices listed immediately upon receipt?_______ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?_______ 5. Is the accounts payable customer ledger balanced periodically with the general ledger control account?_______ 6. Does the accounting manual give instructions to date purchase entries on the date of receipt of goods?_______ 7. Are shipping documents authorized and prepared for goods returned to vendors?_______ 8. Is the accounts payable department notified of goods…arrow_forwardAt Crane Company, the following errors were discovered after the transactions had been journalized and posted. 1. A collection on account from a customer for $960 was recorded as a debit to Cash $960 and a credit to Service Revenue $960. 2. The purchase of store supplies on account for $1,560 was recorded as a debit to Supplies $1,190 and a credit to Accounts Payable $1,190.arrow_forwardmaking currect answer. attched filesarrow_forward
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Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage

Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning

Intermediate Accounting: Reporting And Analysis
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ISBN:9781337788281
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Publisher:Cengage Learning