On August 5, FDNACCT Services purchased office equipment for $210,000 on terms 60% down payment and the balance payable in four equal payments to be paid every 15th of the month starting the month of purchase. FDNACCT had not defaulted in payment (defaulted means missed payment). How much was the balance of Accounts Payable account as of August 31?

On August 5, FDNACCT Services purchased office equipment for $210,000 on terms 60% down payment and the balance payable in four equal payments to be paid every 15th of the month starting the month of purchase. FDNACCT had not defaulted in payment (defaulted means missed payment). How much was the balance of Accounts Payable account as of August 31?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A credit card company determines a card holder's minimum monthly payment by adding all new interest to 1.5% of the outstanding principal. The credit card company charges an interest rate of 0.05814% per day. On November 10, a customer used his credit card to pay for the following business expenses: van repairs ($654), equipment maintenance ($461), office supplies ($138), and dinner with clients ($123). Use the given information and the rule that minimum payments are rounded up to the nearest dollar to answer parts a and b below. a. Assuming the card holder had no new interest, determine his minimum payment due on December 1, his billing date. The card holder's minimum payment due on December 1 is $
On March 12, jangles corporation received $20, 100 invoice dated March 9. Cash discount terms were 2/10, n/30. On March 16 jangles spent an $8,040 partial payment. What credit should jangles receive? What is jangles outstanding balance?
Sipacore Ltd. has an Accounts Receivable amount of $363,700 and an unadjusted credit balance in Allowance for Expected Credit Losses of $8,600 at March 31. The company's accounts receivable and percentage estimates of uncollectible accounts are as follows: Number of Days Outstanding 0-30 (a) 31-60 61-90 Over 90 Total Your answer is correct. Age of Accounts 0-30 days 31-60 days Accounts Receivable $258,000 45,800 32,600 27,300 $363,700 61-90 days Over 90 days Prepare an aging schedule to determine the total estimated uncollectibles at March 31. Amount % $258,000 2% 45,800 10% 32,600 30% Estimated Percentage Uncollectible 27,300 50% 2% 10% 30% 50% Estimated Uncollectible 5160 4580 9780 13650 33170
Purple Co showed the following balances as of Dec 31, 2021 · Account receivable P2,000,000 · All for doubtful accounts (60,000) The ff transactions transpired during the year a. On May 1, received a P300,000 six months 12 int note from MN in settlement of the account b. On June 30 factored P400,000 of its accounts receivable in a finance com. The finance co charged a factoring fee of 5 pct of the accounts and withheld 20 pct of the amount factored c. On Aug 1 Purple discounted the MN note at the bank at 15 pct d. On Nov 1 MN defaulted on the P300,000 note and Purple paid the bank the total amount plus a P12,000 protest fee and charges e. On Dec 31, Purple assigned P600k of its account sreceivable to a bank under a non notification basis. The bank advanced 80 pct less service fee of 5 pct of the accounts assigned. Purple signed a promissory note for the loan f. On dec 31 Purple collected fromMN in full incuding interest on otal amount de at 12 pct since default date g. On Dec 31…
The ledger of Larkspur Company at the end of the current year shows Accounts Receivable $92,000, Credit Sales $850,000, and Sales Returns and Allowances $37,000. (a) (b) (c) If Larkspur uses the direct write-off method to account for uncollectible accounts, journalize the entry if on July 7 Larkspur determines that Matisse company's $900 balance is uncollectible. Assume Larkspur uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a credit balance of $1,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Assume Larkspur uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful…
On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for expected credit losses. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: a. The company made a credit sale of $300,000. b. The company collected accounts receivable for 350,000. c. The company wrote off the uncollectible accounts for $12,000. d. The company collected the receivable of $4,000 that had been written off previously. Required Note: Show calculation: (1) Prepare journal entries to record the above four transactions. (2) Assume that 2% of the company’s accounts receivable cannot be collected, prepare the adjusting journal entry at the end of 20X2.
An insurance company had the following gross receipts (excluding vat, if applicable) during the month: Cash collections from life premiums - P3,600,000; Notes receivable for life premiums - P400,000; Cash collections from non-life premiums - P2,200,000; Notes receivable from non-life premiums - P600,000. How much is output VAT? (answer must all be numbers, no peso sign, no commas, no decimals and no extra spaces in between numbers)
Tacklebox Company charges 19% interest on all unpaid Tacklebox's credit card transactions beyond 30 days. On September 30, Bass had a balance owing of $6,500 on the credit card that was now past due. What adjusting entry would be recorded by Tacklebox on September 30 for Bass's unpaid balance? a Debit to Credit Card Receivable and credit to Interest Revenue for $102.92. b Debit to Accounts Receivable and credit to Sales for $6,500. c Debit to Accounts Receivable and credit to Interest Revenue for $102.92. d Debit to Credit Card Receivable and a credit to Sales for $6,500.
Commercial Supply Corp. bills its accounts on terms of 2/10 net 30. The firm's accounts receivable include $200 000 that has been outstanding for ten or fewer days, $126 000 outstanding for 11 to 30 days, $198 000 outstanding for 31 to 40 days, $92 000 outstanding for 41 to 50 days, $30 000 outstanding for 51 to 60 days, and $7 000 outstanding for more than 60 days. Is the ageing schedule for Commercial Supply Corp. bottom heavy? Select one: O a. No, since 70% of the outstanding sales are on time and the percentage of long-term outstanding payments is low. O b. No, since the percentage of payments that are late are greater than the percentage of payments that are on time. O c. Yes, since the percentage of payments that are late are greater than the percentage of payments that are on time. O d. Cannot tell from the information given.
Maple Co. provides for bad debts expense at the rate of 5.75% of ending Accounts Receivable. On Jan 1, 20X1, the Allowance for Bad Debts was $18,000. There were $16,000 of accounts written off during the year. Credit sales for the year were $530,000. Ending Accounts Receivable was $120,000. What is the amount of Bad Debt Expense for the year?
:Company provided the following information related to its accounts receivable. Last year 12/31 Estimated that P7,000 of accounts receivable would become uncollectible. Current year 1/05 Wrote-off the P 5,000 balance owed by J Company and the 2,000 balance owed by F Company. 3/18 Reinstate the account of J Company that had been written off since they signify and confirmed the payment. 3/21 Receipt of payment in full. Required: Journalize the transactions
The opening balance of a savings account for June is $2,966. On June 9, $140 was withdrawn from the account. If the account pays simple interest at 1.15% based on the daily closing balance, how much interest is deposited on July 1? For full marks your answer should be rounded to the nearest cent. Interest = $0.00