ACCOUNTS PAYABLE LEDGER ACCOUNT-BAILEY COMPANY Suarez, Incorporated, $2,800 Suarez, Incorporated DATE TRANSACTIONS January 8, 20x1 Received payment of $2,744 on account from Bailey Company in payment of Invoice 1885, dated December 30, 20x0, less cash discount of $56. January 10, 20x1 January 15, 20x1 Sold merchandise for $1,900 on account to Bailey Company, Invoice 1920, terms 2/10, n/30. Issued Credit Memorandum 320 to Bailey Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10. January 19, 20X1 Received payment from Bailey Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount. January 30, 20X1 Sold merchandise for $4,000 to Bailey Company, Invoice 1950; terms 2/10, n/30. GENERAL LEDGER ACCOUNTS-SUAREZ, INCORPORATED 111 Accounts Receivable, $2,800 Debit ACCOUNTS RECEIVABLE LEDGER ACCOUNT-SUAREZ, INCORPORATED Bailey Company, Required: 1a. Journalize the transactions above in a general journal for Bailey Company. 1b. Journalize the transactions above in a general journal for Suarez, Incorporated

ACCOUNTS PAYABLE LEDGER ACCOUNT-BAILEY COMPANY Suarez, Incorporated, $2,800 Suarez, Incorporated DATE TRANSACTIONS January 8, 20x1 Received payment of $2,744 on account from Bailey Company in payment of Invoice 1885, dated December 30, 20x0, less cash discount of $56. January 10, 20x1 January 15, 20x1 Sold merchandise for $1,900 on account to Bailey Company, Invoice 1920, terms 2/10, n/30. Issued Credit Memorandum 320 to Bailey Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10. January 19, 20X1 Received payment from Bailey Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount. January 30, 20X1 Sold merchandise for $4,000 to Bailey Company, Invoice 1950; terms 2/10, n/30. GENERAL LEDGER ACCOUNTS-SUAREZ, INCORPORATED 111 Accounts Receivable, $2,800 Debit ACCOUNTS RECEIVABLE LEDGER ACCOUNT-SUAREZ, INCORPORATED Bailey Company, Required: 1a. Journalize the transactions above in a general journal for Bailey Company. 1b. Journalize the transactions above in a general journal for Suarez, Incorporated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ournal Entries for Accounts and Notes ReceivableDallmus, Inc., began business on January 1. Several transactions for the year follow: May 2 Received a $31,800, 60 day, ten percent note on account from the Haskins Company. Jul.1 Received payment from Haskins for its note plus interest. Jul.1 Received a $57,000, 120 day, ten percent note from R. Longo Company on account. Oct.30 R. Longo failed to pay its note. Dec.9 Wrote off R. Longo's account as uncollectible. Dallmus, Inc., uses the allowance method of providing for credit losses. Dec.11 Received a $45,000, 90 day, nine percent note from R. Canal on account. Dec.31 Recorded expected credit losses for the year by an adjusting entry. The Allowance for Doubtful Accounts has a debit balance of $59,600 as a result of accounts written off during this first year. An analysis of aged accounts receivables indicates that the desired balance of the allowance account is $14,600 Dec.31 Made the appropriate…
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Accounting for Cash Discounts Illustration An entity purchases inventory with a list price of P10,000 on account under credit terms of 20%, 10%, 2/10, n/30 Required: Prepare the journal entries using a. Gross method b. Net method
Journal Entries for Accounts and Notes Payable Simon Company had the following transactions: Apr. 15 Issued a $6,000, 60-day, 8 percent note payable in payment of an account with Marion Company. May 22 Borrowed $45,000 from Sinclair Bank, signing a 60-day note at nine percent. Jun. 14 Paid Marion Company the principal and interest due on the April 15 note payable. Jul. 13 Purchased $15,000 of merchandise from Sharp Company; signed a 90-day note with ten percent interest. Jul. 21 Paid the May 22 note due Sinclair Bank. Oct. 2 Borrowed $38,000 from Sinclair Bank, signing a 120-day note at 12 percent. Oct. 11 Defaulted on the note payable to Sharp Company. Requireda. Record these transactions in general journal form.b. Record any adjusting entries for interest in general journal form. Simon Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.a. General Journal Date Description Debit Credit Apr.15…
Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the invoice within the discount period. What is the amount of sales from the above transactions? a.$24,990 b.$26,010 c.$25,500 d.$16,000
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