Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected. Instructions: 1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the gross price: A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 2. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price: A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 3. Calculate the accounts receivable balance that would be reported on Lambert’s December 31, 2019, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price.
Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected. Instructions: 1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the gross price: A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 2. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price: A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 3. Calculate the accounts receivable balance that would be reported on Lambert’s December 31, 2019, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected.
Instructions:
| 1. | Prepare the
|
||||||||||||||
| 2. | Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price:
|
||||||||||||||
| 3. | Calculate the accounts receivable balance that would be reported on Lambert’s December 31, 2019, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 7 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education