Need answer A company purchases office supplies worth $3,000 on credit. Later,they pay $1,200 in cash for part of the supplies purchased. After amonth, they realize $300 worth of supplies were defective and returnthem, receiving a refund. What are the entries for these transactions inthe company's accounts? XYZ Company, a small retail business,started the month with $15,000 in cash and inventory worth $25,000.During the month, the company purchased additional inventory worth$10,000 on credit and made sales totalling $20,000, of which $5,000was cash sales and the rest was on account. The cost of the inventorysold was $12,000. By the end of the month, the company paid $6,000to suppliers for inventory purchases. Additionally, the companyincurred $3,000 in operating expenses, which were all paid in cash.Prepare the journal entries for each transaction and calculate the endingbalances for Cash, Accounts Receivable, Inventory, Accounts Payable,and Retained Earnings.

Step 1: The company purchased office supplies worth $3,000 on credit. This increases the office…

Answered: A company purchases office supplies…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 1CP: Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square...

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A company purchases office supplies worth $3,000 on credit. Later, they pay $1,200 in cash for part of the supplies purchased. After a month, they realize $300 worth of supplies were defective and return them, receiving a refund. What are the entries for these transactions in the company's accounts? XYZ Company, a small retail business, started the month with $15,000 in cash and inventory worth $25,000. During the month, the company purchased additional inventory worth $10,000 on credit and made sales totalling $20,000, of which $5,000 was cash sales and the rest was on account. The cost of the inventory sold was $12,000. By the end of the month, the company paid $6,000 to suppliers for inventory purchases. Additionally, the company incurred $3,000 in operating expenses, which were all paid in cash. Prepare the journal entries for each transaction and calculate the ending balances for Cash, Accounts Receivable, Inventory, Accounts Payable, and Retained Earnings.
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Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Check my work mode: This shows what is correct or incorrect for the work you have completed so Year 1 a. Sold $1,353,900 of merchandise on credit (that had cost $978,100), terms n/30. b. Wrote off $20,900 of uncollectible accounts receivable. c. Received $670,600 cash-in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,532,900 of merchandise (that had cost $1,268,900) on credit, terms n/30. f. Wrote off $31,100 of uncollectible accounts receivable. g. Received $1,245,100 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be…
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I. Street Bank is considering giving Fallen Company a loan. Before doing so, it decides that further discussions with Fallen's accountant may be desirable. One area of particular concern is the inventory account, which has a year-end balance of $375,000. Discussions with the accountant reveal the following. 1. Fallen sold goods costing $55,000 to White Company FOB shipping point on December 28. The goods are not expected to reach White until January 12. The goods were not included in the physical inventory because they were not in the warehouse. 2. The physical count of the inventory did not include goods costing $95,000 that were shipped to Fallen FOB destination on December 27 and were still in transit at year-end. 3. Fallen received goods costing $15,000 on January 2. The goods were shipped FOB shipping point on December 26 by Lynch Co. The goods were not included in the physical count. 4. Fallen sold goods costing $41,000 to Benet of Canada FOB destination on December 30. The goods…
Splish Brothers Bank and Trust is considering giving Pohl Company a loan. Before doing so, it decides that further discussions with Pohl's accountant may be desirable. One area of particular concern is the Inventory account, which has a year-end balance of $319,000. Discussions with the accountant reveal the following. 1. Pohl shipped goods costing $63,800 to Hemlock Company FOB shipping point on December 28. The goods are not expected to reach Hemlock until January 12. The goods were not included in the physiçal inventory because they were not in the warehouse. The physical count of the inventory did not include goods costing $95,000 that were shipped to Pohl FOB destination on December 27 and were still in transit at year-end. Pohl received goods costing $29,000 on January 2. The goods were shipped FOB shipping point on December 26 by Yanice Co. The goods were not included in the physical count. 3. Pohl shipped goods costing $59,160 to Ehler of Canada FÓB destination on December 30.…
On February 16th, Gates Gems received merchandise that was purchased on account from Gem Warehouse in the amount of $10,000. Half of the merchandise was damaged and they returned the damaged merchandise and kept the rest. What is the journal entry to record this transaction? Debit Accounts Receivable/Gem Warehouse, 10,000; credit Purchases Returns and Allowances, $10,000 Debit Accounts Payable/Gem Warehouse, $5,000; credit Purchases Returns and Allowances, $5,000 Debit Accounts Receivable/Gem Warehouse, $10,000; credit Purchases, $10,000 O Debit Accounts Receivable/Gem Warehouse, $5,000; credit Purchases $5,000
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California Cannery began in 2008 with a debit balance in Accounts Receivable $150,000 and a credit balance in Allowance for Doubtful Accounts for 7,500 for the year. During the year California Cannery sold 1,300,000 of product and collected 1,350,000 from customers. In addition, $4,000 of Accounts Receivable balance was written off as uncollectable during the year. Management uses the allowance method to account for bad debts and believes that ultimately 5% of the year-end balance in Accounts Receivable will not be collected. How much bad debt expenses will be recorded in 2008?
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount…
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount…

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