Prepare the journal entry to record (1) the receipt of payment of $78,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Sandhill Inc. on this transaction. (Credit account titles are automatically indented when amount is
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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.
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- Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carmel Company employees. The total cruise package price to Carmel Company employees is $70,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $65,800 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $70,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction.Crane Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company employees is $84,000. Crane Inc. receives a commission of 6% of the total price. Crane Inc. therefore remits $78,960 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $84,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Crane Inc. on this transaction. (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. List all debit entries before credit entries.) No. Account Titles and Explanation 1. CAsh 2. No Entry Commission Expense Sales Revenue No Entry Debit 84,000 0 78,960 5,040 0 Credit 84,000 0 84,000 0Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Cullumber Company employees. The total cruise package price to Cullumber Company employees is $62,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $58,280 to ShipAway.Prepare the journal entry to record (1) the receipt of payment of $62,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction. (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 0 for the amounts.) Sr. No. Account Titles and Explanation Debit Credit 1. 2.
- Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Oriole Company employees. The total cruise package price to Oriole Company employees is $64,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $60,160 to ShipAway.Prepare the journal entry to record (1) the receipt of payment of $64,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction. (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 0 for the amounts.)Pharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Company employees. The total cruise package price to Ivanhoe Company employees is $63,000. Pharoah Inc. receives a commission of 5% of the total price. Pharoah Inc. therefore remits $59,850 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $63,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on this transaction. (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. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. Cash Accounts Payable No Entry Accounts Payable Cash sales Debit 63,000 63,000 Credit 63,000 0 59,850Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carmel Company employees. The total cruise package price to Carmel Company employees is $70,000. Travel Inc. receives a commission of 6% of the total price. Travel Inc. therefore remits $65,800 to ShipAway. Prepare the journal entry to record the remittance and revenue recognized by Travel Inc. on this transaction.
- Cullumber Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Blossom Company employees. The total cruise package price to Blossom Company employees is $60,000. Cullumber Inc. receives a commission of 5% of the total price. Cullumber Inc. therefore remits $57,000 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $60,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Cullumber Inc. on this transaction. (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. List all debit entries before credit entries.) No. Account Titles and Explanation 1. 2. Debit Credit TAMIPharoah Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Ivanhoe Company employees. The total cruise package price to Ivanhoe Company employees is $74,000. Pharoah Inc. receives a commission of 6% of the total price. Pharoah Inc. therefore remits $69,560 to ShipAway. 4440 Prepare the journal entry to record (1) the receipt of payment of $74,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Pharoah Inc. on this transaction. (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. List all debit entries before credit entries.)Cullumber Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Bonita Company employees. The total cruise package price to Bonita employees is $62,000. Cullumber receives a commission of 6% of the total price. Cullumber therefore remits $58,280 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $60,000 from employees for the cruise ship package and (2) the remittance and revenue recognized by Cullumber Inc. on this transaction. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.
- Your answer is partially correct. Cullumber Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Blossom Company employees. The total cruise package price to Blossom Company employees is $60,000. Cullumber Inc. receives a commission of 5% of the total price. Cullumber Inc. therefore remits $57,000 to ShipAway. Prepare the journal entry to record (1) the receipt of payment of $60,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Cullumber Inc. on this transaction. (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 0 for the amounts. List all debit entries before credit entries.) No. Account Titles and Explanation 1. Debit Credit Cash Accounts Payable Accounts Payable Sales Revenue Cash 60,00 60,000 60,00 3,000 57,000On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from Dammam Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Dammam $30,000. When the goods are delivered, Sharjah pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sharjah returns $1,400 of goods to Dammam, who receives them one day later and restores them to inventory. The returned goods had cost Dammam $800. On May 20, Sharjah mails a check to Dammam Corporation for the amount owed. Dammam receives it the following day. (Both Sharjah and Dammam use a perpetual inventory system.) Required: - Prepare journal entries that Dammam Corporation records for these transactions.Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $290 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record: A. the initial purchase B. the subsequent payment on April 17 If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. Apr. 7 Apr. 17 Accounts Payable Accounts Receivable Merchandise Inventory Sales Discounts Sales II III II II