Blue Company sold $9,900 of its specialty shelving to Elkins Office Supply Co. on account. Prepare the entries ignoring cost of goods sold entries when (a) Blue makes the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Accounts Receivable Sales Revenue Debit 9900 Credit 9900 (b) Blue grants an allowance of $715 when some of the shelving does not meet exact specifications but still could be sold by Elkins. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Sales Returns and Allowances Accounts Receivable Debit 715 Credit 715 (c) at year-end; Blue estimates that an additional $195 in allowances will be granted to Elkins. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Sales Returns and Allowances Debit 195 Credit 195
Blue Company sold $9,900 of its specialty shelving to Elkins Office Supply Co. on account. Prepare the entries ignoring cost of goods sold entries when (a) Blue makes the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Accounts Receivable Sales Revenue Debit 9900 Credit 9900 (b) Blue grants an allowance of $715 when some of the shelving does not meet exact specifications but still could be sold by Elkins. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Sales Returns and Allowances Accounts Receivable Debit 715 Credit 715 (c) at year-end; Blue estimates that an additional $195 in allowances will be granted to Elkins. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Sales Returns and Allowances Debit 195 Credit 195
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:Your answer is partially correct.
Blue Company sold $9,900 of its specialty shelving to Elkins Office Supply Co. on account. Prepare the entries ignoring cost of goods
sold entries when
(a) Blue makes the sale. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.)
Account Titles and Explanation
Accounts Receivable
Sales Revenue
Debit
9900
Credit
9900
(b) Blue grants an allowance of $715 when some of the shelving does not meet exact specifications but still could be sold by Elkins. (If
no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when
the amount is entered. Do not indent manually. List debit entry before credit entry.)
Account Titles and Explanation
Sales Returns and Allowances
Accounts Receivable
Debit
715
Credit
715
(c) at year-end; Blue estimates that an additional $195 in allowances will be granted to Elkins. (If no entry is required, select "No Entry" for
the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent
manually. List debit entry before credit entry.)
Account Titles and Explanation
Debit
Credit
Sales Returns and Allowances
195
195
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