EC Ltd. is a merchandising company. Thecompany uses the perpetual method inrecording its merchandise. Meanwhile, thetreatment of uncollectible receivables is byusing the allowance method.Below are transactions that occurred during2019.DateTransactionsMade credit sales of $100,000 to BrianCo. COGS for the product is $40,000.Jan-15Received a note from Brian Co of$100,000, 3 months, 6% asreplacement of last month's debt thatwas due.aMar-15Received notice that the note fromBrian Co. cannot be fulfilled in time.EC Ltd estimates that the probabilityof uncollectible is 100%. Ďue to thiscondition, EC Ltd write-off BrianCo.'s note.Jun-15Receivables from Brian Co. arereinstated, but only an amount of575,000 is received and the remainderis written-off as uncollectible.Sep-30Instruction:Journalize the transactions above! (10%)

Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Answered: EC Ltd. is a merchandising company. The…

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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first sale! They sold $100,000 worth of goods on credit, with terms 3/10, n/20, on 2/1/2021. Record this journal entry using both the net and gross methods. Record the journal entry if the customer pays off this account on 2/5/2021. Record the journal entry if the customer pays off this account on 3/1/2021.
Pharoah Company sells merchandise on account for $3600 to Morton Company with credit terms of 2/14, n/30. Morton Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Pharoah Company make upon receipt of the check? Cash 2940 Sales Returns and Allowances 600 Sales Discounts 60 Accounts Receivable 3600 Cash 2940 Sales Returns and Allowances 660 Accounts Receivable 3600 Cash 3000 Accounts Receivable 3000 Cash 3528 Sales Discounts 72 Sales Returns and Allowances 600 Accounts Receivable 3000
Susanne purchased merchandise with a net price of $347,500 with terms of sale of 4/15, n30. He makes a $15,000 partial payment on day 14. Find the outstanding balance due at the end of credit period.
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A seller uses a perpetual inventory system, and on April 4, it sells $5,000 in merchandise to a customer on credit terms of 3/10, n/30. On April 13, the seller receives payment from the customer. Note: Enter debits before credits. Date April 13 General Journal Debit Credit
Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). Sold $24,000 of merchandise, which cost $18,200, on Mastercard credit cards. Mastercard charges a 5% fee. Sold $5,400 of merchandise, which cost $3,200, on an assortment of bank credit cards. These cards charge a 4% fee.Please use the numbers in my question and place correct solution on journal sheet as rrequested in the assignment please.
1
Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $3,400 (that had cost $2,513) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. April 12 Sold merchandise for $8,400 (that had cost $5,443) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. Note: Round your answers to the nearest whole dollar amount. View transaction list Journal entry worksheet > 1 2 3 4 Record the cost of goods sold, $5,443. Note: Enter debits before credits. Date General Journal Debit Credit April 12 Cost of goods sold Merchandise inventory
On September 1, Jerry's Lighting purchased merchandise with a list price of $12,500 with credit terms of 3/5, n/60. On September 3, Jerry's returns $1,300 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry's Lighting is:
On September 1, Jerry's Lighting purchased merchandise with a list price of $4,100 with credit terms of 3/10, n/60; freight of $200 prepaid and added to the invoice. On September 3, Jerry's returns of $500 of the merchandise. If payment is made within the discount period, the total amount paid by Jerry's Lighting is;
On February 3, Smart Company sold merchandise in the amount of $2,400 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,65O. Smart uses the perpetualinventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Cash 1,650 Accounts receivable 1,650 Cash 2,400 Accounts receivable 2,400 Cash 2,320 Sales discounts pe here to search 5:00 PM 6% 3/7/2022
On March 3, Sheridan Company sells $707,700 of its receivables to Western Factors Inc. Western Factors Inc. assesses a service charge of 5% of the amount of receivables sold. Prepare the entry on Sheridan Company' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Mar. 3 Debit Credit

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