Question 11 of 11 - Practice Pre-Quiz_ Chapter 6
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California State University, San Bernardino *
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101
Subject
Accounting
Date
Jun 12, 2024
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Pages
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No.
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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Answer the balance column of the general ledg
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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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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
Select a description for each transaction recorded in the following T accounts:
Cash
(c)
5,042.10
Accounts Receivable
(a)
5,320
(b)
175
(c)
5,145
Sales
(a)
5,320
Sales Returns andAllowances
(b)
175
Sales Discounts
(c)
102.90
descriptions available:
Issued credit memo for merchandise returned or as an allowance for damaged merchandise.
Received check from customer for amount paid within the discount period less the return.
Sold merchandise for cash.
Sold merchandise on account.
Sold supplies for cash.
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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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Find all the mistakes in the following general ledgers using the information from the general journal provided.
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Provide the SALES JOURNAL only.
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Please help with the following question
COMPLETION STATEMENTS
1.Notes and accounts receivable that result from sales transactions are often called______________ receivables.
2.Two accounting problems associated with accounts receivable are (1) ______________ and (2) ______________ accounts receivable.
3.The net amount expected to be collected in cash from receivables is the _____________.
4.When credit sales are made, _________________ Expense is considered a normal and necessary risk of doing business on a credit basis.
5.The two methods used in accounting for uncollectible accounts are the ____________ method and the ______________ method.
6.Allowance for Doubtful Accounts is a_____________ account which is ______________ from Accounts Receivable on the balance sheet.
7.When the allowance method is used to account for uncollectible accounts, ____________ is debited when an account is determined to be uncollectible.
8.The _________________ basis of…
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12.1 Match the term in the left column with its definition in the right column.
1. CRM system
a. Document used to authorize reducing the
balance in a customer account
2. Open-invoice method
b. Process of dividing customer account master
file into subsets and preparing invoices for one
subset at a time
3. Credit memo
C. System that integrates EFT and EDI
information
4. Credit limit
d. System that contains customer-related data
organized in a manner to facilitate customer
service, sales, and retention
5. Cycle billing
e. Electronic transfer of funds
6. FEDI
f. Method of maintaining accounts receivable that
generates one payment for all sales made the
previous month
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a. At the stage of recording a credit sale transaction, please state the potential misstatements
3) Accounts receivable collection period
can occur! Give examples of control risk corsiderations in credit sales transactions!
4) Uncollectible accounts receivable expense against net credit sales
b. According to information taken from the accounting records of the manufacturing company PT.
5) Uncollectible Accounts Receivable Fee against the write-off of accounts receivable
Hozutama
b. In your opinion what are the implications of the ratio results for auditors in the audit strategy
is as follows :
done in year 5
Sth Year
4th Year
3rd Year
2nd Year
1st Year
Unaudited
Unaudited
Unaudited
Unaudited
Unaudited
Business
Opportunities
(Gross)
Allowance for (14,150)
IDR 535,000
IDR 295,000
IDR 265,000
IDR207,500
IDR175,000
(6,400)
(5,275)
(5,900)
(5,400)
Losses on
Accounts
Total Assets
2,200,000
2,700,000
1,800,000
2,050,000
1,500,000
1,750,000
1,200,000
1,400,000
1,000,000
1,200,000
Total Sales…
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Give Answer with Explanation
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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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If a $335.00 debit item in the general journal is posted as a credit: By how much will the trial balance be out of balance? Explain how you might detect such an error.
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Use the following sales journal to record the transactions. All credit sales are terms of n/30. (If a box is not used in the journal leave the box empty; do not select information or enter a zero.)
i (Click the icon to view the transactions.)
Jun
Date
2024
Invoice
No.
Account Debited
More info
Jun. 1
Jun. 8
Customer
Jun. 13
Jun. 28
Sales Journal
Post.
Ref.
Accounts Receivable DR
Sales Revenue CR
Sold merchandise inventory on account to Ford Junk, $1,250. Cost of goods, $960. Invoice
no. 101.
Page
Cost of Goods Sold DR
Merchandise Inventory CR
Sold merchandise inventory on account to Iris Fray, $2,250. Cost of goods, $1,650. Invoice
no. 102.
Sold merchandise inventory on account to Jack Tremane, $400. Cost of goods, $240. Invoice
no. 103.
Sold merchandise inventory on account to Gail White, $810. Cost of goods, $650. Invoice no.
104.
Print
Done
X
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On a sales receipt, the account selected in the Deposit to field results in
Sales Receipt
Payment method
Chente pament mintha
A. a credit
OB. a debit
OC.no entry
Reference no.
Deposit to
to that account.
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- 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_forwardAnswer the balance column of the general ledgarrow_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_forwardEnter 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_forward
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