Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/ 30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected. Required:1. Prepare the journal entries to record each of the following items assuming that Lambert records accountsreceivable and sales at the gross price:a. the sale of the merchandiseb. collections received by December 18, 2019c. collections received by December 31, 2019d. sales returns and allowances (not cstimated in the period of sale)e. any required year-end adjustmentsf. any January 1, 2020, reversing entriesg. the collections received by January 15, 20202. Prepare the journal entries to record each of the following items assuming that Lambert records accountsreceivable and sales at the net price:a. the sale of the merchandiseb. collections received by December 18, 2019c. collections received by December 31, 2019d. sales returns and allowances (not estimated in the period of sale)e. any required year-end adjustmentsf. any January 1, 2020, reversing entriesg. the collections received by January 15, 20203. Calculate the accounts receivable balance that would be reported on Lambert's December 31, 2019, balancesheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price.

Every business should be documented in at least two locations, according to the logic of a journal…

Answered: Required: 1. Prepare the journal…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/ 30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2020, all the remaining balances due had been collected.

Required:
1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts
receivable and sales at the gross price:
a. the sale of the merchandise
b. collections received by December 18, 2019
c. collections received by December 31, 2019
d. sales returns and allowances (not cstimated in the period of sale)
e. any required year-end adjustments
f. any January 1, 2020, reversing entries
g. the collections received by January 15, 2020
2. Prepare the journal entries to record each of the following items assuming that Lambert records accounts
receivable and sales at the net price:
a. the sale of the merchandise
b. collections received by December 18, 2019
c. collections received by December 31, 2019
d. sales returns and allowances (not estimated in the period of sale)
e. any required year-end adjustments
f. any January 1, 2020, reversing entries
g. the collections received by January 15, 2020
3. Calculate the accounts receivable balance that would be reported on Lambert's December 31, 2019, balance
sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price.

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