.a. -Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following: Jan. 2 Sold $24,000 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $14,400. Schneider uses the perpetual inventory system. Feb. 1 Accepted a $24,000, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity. 15 Sold $15,000 of merchandise costing $9,000 to Garrison Company and accepted Garrison's three-month, 5% note in payment. Interest is payable at maturity. Mar. 15 Sold $12,000 of merchandise to Hoffman Co., terms n/30. The cost of the merchandise sold was $7,200. April 15 Collected the amount owing from Hoffman Co. in full. May 15 Collected the Garrison note in full. (See February 15 transaction.) 31 Accrued interest at year end. July 1 Sapounas Company dishonoured its note of February 1. The company is bankrupt and there is no hope of future settlement. 13 Sold $6,000 merchandise costing $3,600 to Weber Enterprises and accepted Weber's $6,000, three-month, 7% note for the amount due, with interest payable at maturity. Oct. 13 The Weber Enterprises note was dishonoured. (See July 13 transaction.) It is expected that Weber will eventually pay the amount owed. Instructions Record the above transactions. (Round calculations to the nearest dollar.) 1.b -AN Jensen Company's general ledger included the following selected accounts (in thousands) at December 31, 2021: Accounts payable $1,077.3 Accounts receivable 590.4 Accumulated depreciation—equipment 858.7 Allowance for doubtful accounts 35.4 Bad debt expense 91.3 Cash 395.6 Cost of goods sold 660.4 Equipment 1,732.8 Interest revenue 19.7 Merchandise inventory 630.9 Notes receivable—due in 2022 96.0 Notes receivable—due in 2025 191.1 Prepaid expenses 20.1 Sales 4,565.5 Sales discounts 31.3 Short-term investments 194.9 Supplies 21.7 Unearned revenue 56.3 Additional information: 1.On December 31, 2020, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand. 2.The receivables turnover was 8.3 the previous year. Instructions a. Prepare the assets section of the balance sheet. b. Calculate the receivables turnover and average collection period. Compare these results with the previous year's results and comment on any trends
.a. -Schneider Company has a May 31 fiscal year end and adjusts accounts annually. Selected transactions in the year included the following:
Jan. 2
Sold $24,000 of merchandise to Sapounas Company, terms n/30. The cost of the goods sold was $14,400. Schneider uses the perpetual inventory system.
Feb. 1
Accepted a $24,000, five-month, 5% promissory note from Sapounas Company for the balance due. (See January 2 transaction.) Interest is payable at maturity.
15
Sold $15,000 of merchandise costing $9,000 to Garrison Company and accepted Garrison's three-month, 5% note in payment. Interest is payable at maturity.
Mar. 15
Sold $12,000 of merchandise to Hoffman Co., terms n/30. The cost of the merchandise sold was $7,200.
April 15
Collected the amount owing from Hoffman Co. in full.
May 15
Collected the Garrison note in full. (See February 15 transaction.)
31
Accrued interest at year end.
July 1
Sapounas Company dishonoured its note of February 1. The company is bankrupt and there is no hope of future settlement.
13
Sold $6,000 merchandise costing $3,600 to Weber Enterprises and accepted Weber's $6,000, three-month, 7% note for the amount due, with interest payable at maturity.
Oct. 13
The Weber Enterprises note was dishonoured. (See July 13 transaction.) It is expected that Weber will eventually pay the amount owed.
Instructions
Record the above transactions. (Round calculations to the nearest dollar.)
1.b -AN Jensen Company's general ledger included the following selected accounts (in thousands) at December 31, 2021:
Accounts payable
$1,077.3
590.4
858.7
Allowance for doubtful accounts
35.4
91.3
Cash
395.6
Cost of goods sold
660.4
Equipment
1,732.8
Interest revenue
19.7
Merchandise inventory
630.9
Notes receivable—due in 2022
96.0
Notes receivable—due in 2025
191.1
Prepaid expenses
20.1
Sales
4,565.5
Sales discounts
31.3
Short-term investments
194.9
Supplies
21.7
Unearned revenue
56.3
Additional information:
1.On December 31, 2020, Accounts Receivable was $611.1 thousand and the Allowance for Doubtful Accounts was $36.6 thousand.
2.The receivables turnover was 8.3 the previous year.
Instructions
a.
Prepare the assets section of the
b.
Calculate the receivables turnover and average collection period. Compare these results with the previous year's results and comment on any trends
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