Lens Queen Photo Shop is a retail store that sells cameras and photography supplies. The company began operations April 1, 20X1. The firm purchases its merchandise for cash and on open account. During April, the company engaged in the following transactions: DATE TRANSACTIONS 20X1 April 1 Purchased camera accessories on credit from Vision Supplies, Invoice 825, $1,025, terms n/30; freight of $25 prepaid by Vision supplies and added to the invoice (total amount due, $1,050). 3 Purchased lenses on credit for $960 from Lens Nation, Inc., Invoice 998, terms n/30. 11 Purchased DVD camcorders on credit for $4,700 from Optical Products, Invoice 4101, terms n/30. 15 Recorded various purchases of merchandise for cash from April 1 to April 15, $2,300. 26 Purchased lighting equipment on credit from Myers Brothers Camera Supplies, Invoice 9288, $6,800, terms n/30; freight of $198 prepaid by Myers Brothers Camera Supplies and added to the invoice (total amount due, $6,998). 27 Issued Check 102 for $560 to Lens Nation, Inc., in partial payment of Invoice 998 dated April 3. 30 Recorded various purchases of merchandise for cash from April 16 to April 30, $2,570. 30 Issued Check 103 to Vision Supplies in payment of the total amount due on Invoice 825 dated April 1.
Lens Queen Photo Shop is a retail store that sells cameras and photography supplies. The company began operations April 1, 20X1. The firm purchases its merchandise for cash and on open account. During April, the company engaged in the following transactions: DATE TRANSACTIONS 20X1 April 1 Purchased camera accessories on credit from Vision Supplies, Invoice 825, $1,025, terms n/30; freight of $25 prepaid by Vision supplies and added to the invoice (total amount due, $1,050). 3 Purchased lenses on credit for $960 from Lens Nation, Inc., Invoice 998, terms n/30. 11 Purchased DVD camcorders on credit for $4,700 from Optical Products, Invoice 4101, terms n/30. 15 Recorded various purchases of merchandise for cash from April 1 to April 15, $2,300. 26 Purchased lighting equipment on credit from Myers Brothers Camera Supplies, Invoice 9288, $6,800, terms n/30; freight of $198 prepaid by Myers Brothers Camera Supplies and added to the invoice (total amount due, $6,998). 27 Issued Check 102 for $560 to Lens Nation, Inc., in partial payment of Invoice 998 dated April 3. 30 Recorded various purchases of merchandise for cash from April 16 to April 30, $2,570. 30 Issued Check 103 to Vision Supplies in payment of the total amount due on Invoice 825 dated April 1.
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
Lens Queen Photo Shop is a retail store that sells cameras and photography supplies. The company began operations April 1, 20X1. The firm purchases its merchandise for cash and on open account. During April, the company engaged in the following transactions:
| DATE | TRANSACTIONS | ||
| 20X1 | |||
| April | 1 | Purchased camera accessories on credit from Vision Supplies, Invoice 825, $1,025, terms n/30; freight of $25 prepaid by Vision supplies and added to the invoice (total amount due, $1,050). | |
| 3 | Purchased lenses on credit for $960 from Lens Nation, Inc., Invoice 998, terms n/30. | ||
| 11 | Purchased DVD camcorders on credit for $4,700 from Optical Products, Invoice 4101, terms n/30. | ||
| 15 | Recorded various purchases of merchandise for cash from April 1 to April 15, $2,300. | ||
| 26 | Purchased lighting equipment on credit from Myers Brothers Camera Supplies, Invoice 9288, $6,800, terms n/30; freight of $198 prepaid by Myers Brothers Camera Supplies and added to the invoice (total amount due, $6,998). | ||
| 27 | Issued Check 102 for $560 to Lens Nation, Inc., in partial payment of Invoice 998 dated April 3. | ||
| 30 | Recorded various purchases of merchandise for cash from April 16 to April 30, $2,570. | ||
| 30 | Issued Check 103 to Vision Supplies in payment of the total amount due on Invoice 825 dated April 1. |
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