Recording Customer Deposits During the year, Neighbor Co-Op Inc. sells 600 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, a total of 480 glass bottles were returned and deposits on 72 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 48 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits during the year. b. Record the return of glass bottles during the year. c. Record the forfeiture of deposits during the year assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. a. Cash Account Name Liability-Returnable Deposits b. Liability-Returnable Deposits Cash c. Liability-Returnable Deposits Sales Revenue To record forfeiture of deposits Cost of Goods Sold Inventory To adjust inventory related to forfeitures Dr. Cr 01 0X оооооо 0* 07 01 0x 07 0 0X

Recording Customer Deposits During the year, Neighbor Co-Op Inc. sells 600 beverages in glass bottles and receives a $1.00 deposit for each returnable bottle sold. As of December 31, a total of 480 glass bottles were returned and deposits on 72 bottles were forfeited because it is the company's policy that a deposit must be claimed within 30 days. The remaining 48 bottles are still with customers within the 30-day claim period. Required a. Record the collection of deposits during the year. b. Record the return of glass bottles during the year. c. Record the forfeiture of deposits during the year assuming that the cost of each bottle is $0.80. Note: Round your answers to the nearest whole dollar. a. Cash Account Name Liability-Returnable Deposits b. Liability-Returnable Deposits Cash c. Liability-Returnable Deposits Sales Revenue To record forfeiture of deposits Cost of Goods Sold Inventory To adjust inventory related to forfeitures Dr. Cr 01 0X оооооо 0* 07 01 0x 07 0 0X

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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Blue Corp rents out fishing tools. The company requires a returnable deposit with each rental service. During May, the company collected $9,000 customer deposits. The amount of deposit forfeiture 10% of the total deposits. Which one of the following journal entries is correct to record deposit forfeiture? Debit Returnable deposit $900; Credit Cash $900 O Debit Returnable deposit $900; Credit Sales revenue $900 Debit Cash $450; Credit Returnable deposit $450 Debit Cash $900; Credit Returnable deposit $900
On May 22, Jarrett Company borrows $8,800, signing a 90-day, 8%, $8,800 note. What is the journal entry made by Jarrett Company to record the transaction? Multiple Choice Debit Cash $8,800; credit Accounts Payable $8,800. Debit Accounts Payable $8,800; credit Notes Payable $8,800. Debit Cash $8,976; credit Notes Payable $8,976. Debit Cash $8,800; credit Notes Payable $8,800. Debit Notes Receivable $8,800; credit Cash $8,800.
4. On January 1st, 2018, Blue Co. made a $10,000 sale for 1,000 water bottles on account with terms: of 2/15, n/30. If the company uses the net method, which of the following will be included in the Journal entry to record customer payment for all 1,000 water bottles on January 28th, 2018? a) credit Accounts Receivable $10,000 b) credit Sales Discounts Forfelted $200 c) debit Sales Discount $200 d) debit Cash $9,800
Prepare the journal entries for the following transactions: May 1 Sold $150,000 of goods to Georgia Co. on account. May 30 Collected $30,000 from Georgia Co. June 1 Accepted a $120,000, one-year, 10% note from Georgia Co. for the amount remaining on the account. July 30 After 60 days, discounted the note from Georgia Co. at First National Bank at a 12% interest rate. Required: Prepare the journal entries for the transactions listed. Assume a 360 day year.
During Year 1, a company accepts the following notes receivable. 1. On April 1, the company provides services to a customer on account. The customer signs a four-month, 9% note for $5,100. 2. On June 1, the company lends cash to one of the company's vendors by accepting a six-month, 10% note for $9,100. 3. On November 1, the company accepts payment for prior services by having a customer with a past-due account receivable sign a three-month, 8% note for $4,100. Required: Record the acceptance of each of the notes receivable. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 On April 1, the company provides services to a customer on account. The customer signs a four-month, 9% note for $5,100. Note: Enter debits before credits. Date General Journal Debit Credit April 01 Record entry Clear entry View general journal
Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. What would Oswego record on April 23, assuming the customer made the correct payment on that date? A. Cash Sales Revenue Accounts Receivable B. Cash Sales Discounts Accounts Receivable Interest Revenue C. Cash Sales Discounts Accounts Receivable D. Cash Accounts Receivable Sales Revenue Select one: O A. Option A OB. Option B O C. Option C OD. Option D Clear my choice 45,540 460 46,000 460 45,540 460 46,000 46,000 46,000 460 46,000 45,540 460
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger?
Record the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.
Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It offers a one-year warranty on all services. Review each of the transactions, and prepare any necessary journal entries for each situation. A. March 31: Emperor provides cleaning services for fifteen pools during the month of March at a sales price per pool of $550 cash. Emperor records warranty estimates when sales are recognized and bases warranty estimates on 2% of sales. B. April 5: A customer files a warranty claim that Emperor honors in the amount of $100 cash. C. April 13: Another customer, J. Jones, files a warranty claim that Emperor does not honor due to customer negligence. D. June 8: J. Jones files a lawsuit requesting damages related to the dishonored warranty in the amount of $1,500. Emperor determines that the lawsuit is likely to end in the plaintiffs favor and the $1,500 is a reasonable estimate for damages.
Hartman Company, which uses a voucher system, has the following unpaid vouchers on July 1. The firm follows the practice of recording vouchers at the gross amount. The company completed the following transactions during July: July 1Issued voucher no. 4800 in favor of Mortenson Insurance Company for a premium on a 12-month fire insurance policy, 890. 2Paid voucher no. 4789 by issuing Ck. No. 8219, 4,996. 2Issued Ck. No. 8220 in payment of voucher no. 4800, 890. 3Issued voucher no. 4801 in favor of Quinn Quick Freight for transportation charges on merchandise purchases, 223. 5Paid voucher no. 4801 by issuing Ck. No. 8221, 223. 7Issued Ck. No. 8222 in payment of voucher no. 4795, 8,485.29 (8,571 less 1 percent cash discount). 8Issued Ck. No. 8223 in payment of voucher no. 4797, 10,602.90 (10,710 less 1 percent cash discount). 11Established a petty cash fund of 250. Issued voucher no. 4802. 11Paid voucher no. 4802 by issuing Ck. No. 8224, 250. 13Issued voucher no. 4803 in favor of Mohammad Company for merchandise, 14,708; terms 2/10, n/30; FOB shipping point; freight prepaid and added to the invoice, 384 (total, 15,092). 15Received bill for advertising in the Weekly Ads. Issued voucher no. 4804 in the amount of 410. 17Received a credit memo for 764 from Mohammad Company for merchandise returned to it, credit memo no. 540 (pertaining to voucher no. 4803). 20Issued voucher no. 4805 in favor of Vinson County for six months property tax (Prepaid Property Taxes), 2,272. 20Paid voucher no. 4805 by issuing Ck. No. 8225, 2,272. 21Issued Ck. No. 8226 in payment of voucher no. 4803, 14,049.12 (14,708 less 764 return, less cash discount, plus freight). 23Bought merchandise on account from Summers and Company, 6,039; terms 1/10, n/30; FOB destination. Issued voucher no. 4806. 27Received a credit memo for 984 from Summers and Company for damaged merchandise, credit memo no. 437 (pertaining to voucher no. 4806). 31Issued voucher no. 4807 to reimburse petty cash fund. The charges were: July 31Issued Ck. No. 8227 in payment of voucher no. 4807, 225.10. 31Issued voucher no. 4808 for wages payable, 8,448, in favor of the payroll bank account. (Assume that the payroll entry was recorded previously in the general journal.) 31Paid voucher no. 4808 by issuing Ck. No. 8228, payable to Payroll Bank Account. Required 1. Using the voucher issue date, enter the unpaid invoices in the voucher register (page 75) beginning with voucher no. 4789. Then draw double lines across all columns to separate the vouchers of June from those of July. 2. Enter the transactions for July in the voucher register at the gross amount. Also record the appropriate transactions in the check register (page 86) and the general journal (page 41). 3. Total and rule the voucher register and the check register for the transactions recorded during July. 4. Prove the equality of the debits and credits on the voucher register and the check register.
The following notes receivable transactions occurred for Harris Company during the last three months of the current year. (Assume all notes are dated the day the transaction occurred.) Oct. 9 Received a $5,000, 12%, 60-day note from K. Weedon, a customer, for merchandise originally purchased on account. 12 Received a $6,000, 10%, 90-day note from M. Black, a customer, for merchandise originally purchased on account. 15 Sold the Weedon note with recourse at the bank at 14%. The fair value of the recourse liability is estimated to be $1,230. Nov. 11 Sold the Black note with recourse at the bank at 15%. The fair value of the recourse liability is estimated to be $850. 16 Received an $8,000, 12%, 60-day note from B. Butcher, a customer, for merchandise originally purchased on account. 20 Received a $6,000, 11%, 120-day note from D. Goldman, a customer, for merchandise originally purchased on account. Dec. 1 Received a $9,000, 13%, 60-day note from S. Lambert, a…