Ray Neil is a multinational dealer of uniforms for medical personnel. On January 1, 2017, Ray's had thefollowing account balances:$27,000Accounts ReceivableLess Allowance for Doubtful Accounts(4,000)$23,000Net Accounts ReceivableRequired:i. During 2017, Ray's wrote off $6,000 in uncollectible accounts. Make this journal entry.ii. One account in the amount of $500 that had been written off in (i) above was collected. Make thejournal entries to reinstate the account and show its collection.iii. During 2017, Ray's made credit sales of $145,000 and collected $115,000 of accounts receivable.Record these journal entries.iv. At the end of the year, Ray's determines that approximately 7 percent of its ending accountsreceivable balance will not be collected. Ray's uses the percentage of receivables method ofcalculating bad debts. Make the necessary journal entry.

Journal entries are entries which record double affect of a financial transaction.

Answered: Lay's wrote off $6

Business

Accounting

Lay's wrote off $6

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The company made a sale of goods for RO. 15000 (cost RO 10000) and received 30% in cash and balance…

A: Accounting equation: The accounting equation is an accounting tool expressed in the form of the…

Q: Schlitz bought some new material which cost $1,000 and which had credit terms of 1/10 net 30.…

A: 1/10 net 30 means the trade credit offered to a customer for the sales of goods and implies if the…

Q: Provide correct calculation

A: Reference:Bragg, S. (2023, December 12). Accounting for sales discounts — AccountingTools.…

Q: Teal Ltd. reported 2022 net income of HK$157,040. During 2022, accounts receivable increased by…

A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…

Q: The company sells on terms 2/10, net 30. Total sales for the year are P1,000,000, of which P100,000…

A: Total sales is the combination of cash sales and credit sales. Accounts receivables is the amount to…

Q: What is its average collection period?

A: Companies sold their products on cash as well as credit. Credit sales are recorded as receivables or…

Q: Shaw sold 1500 units of XOM for $20 per unit plus 8% sales taxes to Polo Company in cash. Sales tax…

A: Formula: Sales revenue = Sales units x Sales price per unit

Q: At the end of the accounting period, Donna's Daisies had Accounts Receivable of $14,000, Bad Debt…

A: The net realizable value is calculated by deducting the bad debt and allowance for doubtful accounts…

Q: With the invoice number 18, 18% VAT excluded commercial goods of 40.000 TL were sold with a credit…

A: What is meant by journal entries? It is the first step to record the financial transaction in the…

Q: 8. A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350.…

A: In this question, we will find out the total amount paid for merchandise.

Q: E-10. The following transact to you in the books of RS Pustak Bhandar: July 1. Started business by…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Gerardo Norega bought a dinette set for $900, which he paid in 12 monthly payments of $81.90. (a)…

A: Formula used:

Q: Al Jaffar LLC had accounts receivable for RO 25000. They sold the accounts receivable to the Factor…

A: factor service is a service availed in order to cover oneself from the bad debt loss from the factor…

Q: 2. Richard Lenz receives a 3.5 commission for selling cleaning supplies. What is his commission on…

A: Commission on sales are calculated on the basis of sales and percentage of commission on sales.

Q: A company sells $170,000 (sales price) of goods and collects sales tax of 5%. What current liability…

A: Sales tax collected = Sales x sales tax rate = $170,000 x 5% = $8,500

Q: CPA Co. factored accounts receivable of P2,500,000 with credit terms of 3/10, n/30 immediately after…

A: Cash is an asset which is used as consideration for exchange of goods and services. It is treated as…

Q: Stephco purchased $4,000 worth of merchandise. Transportation costs were an additional $350.…

A: Total amount paid for merchandise is calculated as below.

Q: Elegant Electronics sells a cellular phone on September 2 for $442. On September 6, Elegant sells…

A: Hi student Since there are multiple questions, we will answer only first question. Taxes are the…

Q: 19. The following are not taxable, except:* a. Refund of fringe benefit tax b. Refund of…

A: Refund of Philippine income tax Refund of estate or donor’s tax Refund of special assessment The…

Q: Noel's Auto Repair Shop paid P3,586.20 invoice dated November 12,2014 on December 10 of the same…

A: Given: Invoice = P3,586.20 Invoice date = November 12,2014 Paid on = December 10, 2014 Stated…

Q: Saad Company is planning to purchase a machine having an invoice price of Rs. 49,000. The terms of…

A: Cost of fixed assets means total costs incurred on the purchase of fixed assets and all other costs…

Q: Elegant Electronics sells a cellular phone on September 2 for $439. On September 6, Elegant sells…

A: Total sale = Sale of cellular phone on September 2 + Sale of cellular phone on September 6 = 439+353…

Q: on may 28, talbot of boston sold forrest of los angeles 7,700 of fine clothes. terms were 5/10 eom…

A: Concept: 5/10 EOM means the 5% discount will be given if the full amount is paid in 10 days after…

Q: Adrian pays P718822 cash and the balance in 43 quarterly payments of P29243 for a house and lot. If…

A: A mortgage is a covered loan taken out for the purchase or maintenance of a property. It is covered…

Q: Marriott Hotels purchased ten iRobot Roomba i7+ for $945 each. It received a 15% discount for buying…

A: STEP 1 The time frame within which a consumer may use a cash discount to make a smaller cash payment…

Q: The purchase of supplies paying 30% cash and the account includes the fol

A: Supplies are the stock of supporting material which are used in the production of goods. Examples…

Q: Jordan's of Boston sold Lee Company of New York computer equipment with a $7,000 list price. Sale…

A: FOB means seller prepays the freight and bills it to the buyer. In this case payment is made in the…

Q: Morely Co. sells $100,000 of receivables with no recourse for 90% of face value and a 10%…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Cash and Discount. Villora Corp. received an invoice dated on November 2nd with an amount of…

A: Discount Period - Discount period given in the question shows like 5/10, n/30 that means if the…

Q: Elegant Electronics sells a cellular phone on September 2 for $374. On September 6, Elegant sells…

A: Taxes are the amount of dues that needs to be paid by individual or business to the government. This…

Q: A computer dealer paid $695 for a computer and sold it for $1,495. Find the percent markup based on…

A: Step 1:Step 2:

Q: The back of the book says the answer should be $7,413. Do you know what there would be a…

A: As per the given information: EOYCash flow0-$30,0001$6,0002$13,5003$X4$13,500 MARR - 12% per year To…

Q: On June 02, Talbots of Boston sold Forrest of Los Angeles $7,950 of fine clothes. Terms were 2/10…

A: A sales discount is a price drop that the seller gives in return for the buyer paying the vendor in…

Q: Shaw Company purchased 2000 units of a merchandise (called XOM) at $10 per unit from Reynold Company…

A: The discount period is the time spam within which the creditor would require to pay the amount to…

Q: Dean bought goods on credit from Easy Traders for 3600. A mark up of 20% on cost applied to these…

A: In order to earn Profit, goods are sold on Cost plus Markup.

Q: how did you arrive to $3,503.44?

Q: Required: a) Analyze the above transactions. Include money columns for the accounts Cash, Accounts…

A: Financial statements refer to the statements which represent the financial performance and position…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Ray Neil is a multinational dealer of uniforms for medical personnel. On January 1, 2017, Ray's had the
following account balances:
$27,000
Accounts Receivable
Less Allowance for Doubtful Accounts
(4,000)
$23,000
Net Accounts Receivable
Required:
i. During 2017, Ray's wrote off $6,000 in uncollectible accounts. Make this journal entry.
ii. One account in the amount of $500 that had been written off in (i) above was collected. Make the
journal entries to reinstate the account and show its collection.
iii. During 2017, Ray's made credit sales of $145,000 and collected $115,000 of accounts receivable.
Record these journal entries.
iv. At the end of the year, Ray's determines that approximately 7 percent of its ending accounts
receivable balance will not be collected. Ray's uses the percentage of receivables method of
calculating bad debts. Make the necessary journal entry.

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!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

PHE, Inc.estimates warranty expense at 2% of sales. Sales during the year were $4 million and warranty related cash expenditures were $34,000. What was the balance in the Warranty Liability account at the end of the year? Select one: a. $80,000 b. $36,000 c. $34,000 d. $46,000 e. $56,000
Macy of New York sold LeeCo. of Chicago office equipment with a $5,600 list price. Sale terms were 5/10, n/30 FOB New York. Macy agreed to prepay the $80 freight. LeeCo. pays the invoice within the discount period. What does LeeCo. pay Macy? Payable amount
6. ABC Co. owns a branch. At the end of the month, the balance of the Allowance on overvaluation is P95,000. The branch reported the following: beg. inventories - P15,000; ending inventories - P100,000; shipments from Home Office P555,000; Sales - P800,000; Expenses - P200,000. What is the percentage of profit on cost that the Home office uses to bill the branch?
J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?
5. Alivar Company purchases goods for OMR 18,000 from the supplier and makes payment along with VAT, The Company realizes OMR 25,000 by selling those goods and charges VAT from customer. What will be the VAT amount that is forwarded by the supplier of the company to the government when VAT rate is 9%? A. OMR 1,620 B. OMR 630 C. OMR 2,250 D. OMR 2,880
PT Bumi ordered 20 sets of tables and chairs to PT CBA. Price set per unit of Rp 5,000,000 with 10% VAT. If you use the accrual method of revenue recognition then the following is true:a. PT Bumi records the following journals:(D) Accounts Receivable Rp. 110,000,000(K) Sales Rp 100,000,000(K) VAT Out Rp 10,000,000b. PT CBA records the following journals:(D) Accounts Receivable Rp. 110,000,000(K) Sales Rp 100,000,000(K) VAT Out Rp 10,000,000c. PT Bumi records the following journals:(D) Cash Rp. 110,000,000(K) Sales Rp 100,000,000(K) VAT Out Rp 10,000,000d. PT CBA records the following journals:(D) Cash Rp. 110,000,000(K) Sales…
JellyFelly sold a lamp to a cash customer, the retail price was $299.99 and sales tax is 9%. The journal entry to record this transaction would include a: O Debit to Cash for $299.99 • Credit to Sales Revenue for $326. O Credit to Sales Tax Payable $27. O Debit to Sales Revenue for $299.99
Elegant Electronics sells a cellular phone on September 2 for $393. On September 6, Elegant sells another cellular phone for $360. Sales tax is computed at 4.1% of the total sale. What is the total cash collected rounded to the nearest penny, two decimals?
On June 06, Talbots of Boston sold Forrest of Los Angeles $8,150 of fine clothes. Terms were 4/10 EOM FOB Boston. Talbots agreed to prepay the $80 freight. If Forrest pays the invoice on June 8, what will Forrest pay?
Jk. 194.
esponse Chris Company sold merchandise for cash to Shadi Company for $103,000 including 3% sales taxes.
The Miller Company recognized $129,000 of service revenue earned on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected $85,000 of cash from accounts receivable. The company estimates that it will be unable to collect 3% of its sales on account. The net realizable value of Miller's receivables at the end of Year 2 was: Multiple Choice $47,870. $44.000, $40,130. $41,450.