Miguel Vega has a music equipment sales business called Music Sound. During the month of February the following transactions occurred: Date (February) Transaction 2 $ 10,000 worth of speakers purchased to sell at the business outside of the discount period. 4 Of the speakers purchased on Day 2, 4 were returned at a cost of $ 500 each to the seller because they were damaged. 6 20 amplifiers were purchased for sale on credit with a value of $ 4,000 with a payment term of 2/10 n / 30. 10 A sale was made to a customer of 5 amplifiers for $ 2,000. 12 Payment of the purchase of the 6th was made in full. 15 Music Sound made a $ 5,000 credit sale to a customer with a term of 3/10 n / 30. The cost of the merchandise was $2,500. 18 The customer who purchased merchandise on the 15th returned $ 500 worth of merchandise because it was defective. 20 he customer who made the purchase on the 15th paid in full with the corresponding discount. Part 2. Using the information in part 1, make the closing entries in the general ledger and ledgers for each account.
Bad Debts
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.
Part 1. Read the following case, make the wage entries and the process of recording the transactions (posting) in the individual account book (ledger).
Miguel Vega has a music equipment sales business called Music Sound. During the month of February the following transactions occurred:
Date
(February) Transaction
2 $ 10,000 worth of speakers purchased to sell at the business outside of the discount period.
4 Of the speakers purchased on Day 2, 4 were returned at a cost of $ 500 each to the seller because they were damaged.
6 20 amplifiers were purchased for sale on credit with a value of $ 4,000 with a payment term of 2/10 n / 30.
10 A sale was made to a customer of 5 amplifiers for $ 2,000.
12 Payment of the purchase of the 6th was made in full.
15 Music Sound made a $ 5,000 credit sale to a customer with a term of 3/10 n / 30. The cost of the merchandise was $2,500.
18 The customer who purchased merchandise on the 15th returned $ 500 worth of merchandise because it was defective.
20 he customer who made the purchase on the 15th paid in full with the corresponding discount.
Part 2. Using the information in part 1, make the closing entries in the general ledger and ledgers for each account.
Please answer part 2 alone I have attached the part 1 answer too
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