Rubin Enterprises had the following sales-related transactions on a recent day:a. Billed customer $28,600 on account for services already provided.b. Collected $5,715 in cash for services to be provided in the future.c. The customer complained about aspects of the services provided in Transaction a. To maintain a good relationship with this customer, Rubingranted an allowance of $1,500 off the list price. The customer had not yet paid for the services.d. Rubin provided the services for the customer in Transaction b. Additionally, Rubin granted an allowance of $480 because the services wereprovided after the promised date. Because the customer had already paid, Rubin paid the $480 allowance in cash.Required:Prepare the necessary journal entry (or entries) for each of these transactions. PAGE 1IMPACT ON FINANCIAL STATEMENTSJOURNALBALANCE SHEETINCOME STATEMENTDATEDESCRIPTIONPOST. REF.DEBITASSETSLIABILITIESREVENUEEXPENSESNET INCOMECREDITEQUITY2348

Journal entry is the activity of making summary of transactions both economic and non-economic.…

Answered: Rubin Enterprises had the following…

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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am. 81.
Your company just hired a new employee who is unsure about proper accounting procedures. There was a "sales transaction" on Sept. 4 with the terms 3/15, n/60, followed by a "refund" on Sept. 17, and the customer paid on Sept. 21. Which accounts would be creditied on sept 21?
Swaggy Steve's Clothing Company just completed their fiscal year ending August 31, 2019. The company's controller, when reviewing the trial balance, has discovered that the following four errors were made: 1. Swaggy recorded a $400 purchase of supplies on account by debiting Accounts Payable and crediting Supplies. 2. A cash receipt of $1,800 received from a customer as payment on their account was debited to cash and credited to sales revenue. 3. Swaggy recorded the payment of $750 in salaries expense as $570 (the correct accounts were debited and credited). 4. A payment of $1,200 for October's rent was debited to rent expense. Required: A. Using the space provided below, indicate how each element of the basic accounting equation is affected by the error by writing the amount and whether it is overstated (higher than what it is supposed to be) or understated (lower than what it is supposed to be), e.g., if the error caused assets to be overstated by $100 write "$100 Overstated" under…
On August 12, a company provides services on account to a customer for $3,500. However, on August 16, the customer is not completely satisfied with the service and the company grants an allowance on the amount owed of $500. On August 20, the customer makes full payment of the balance owed, excluding the allowance. Record the services provided on August 12, the sales allowance on August 16, and the cash collection on August 20. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc. Required: On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Quantum Solutions Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-Alliance Inc. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215…
In June, Widgets, Inc. makes on account sales to Customs Motors of $800 and receives a payment of $500 from them. How would this affect the Accounts Receivable control account? O A. The AR total would be decreased by $300. O B. The AR total would be decreased by $500. O C. The AR total would be increased by $800. O D. The AR total would be increased by $300.
The company uses the allowance method to write off bad debts. What entry will they make to write off the accounts? 20. A company performs $5,780 of services for a customer on account. Write the entry to record this transaction.
In the first year of operations, Ralph's Repair Service recognized $482,000 of service revenue earned on account. The ending accounts receivable balance was $88,900. Ralph estimates that 2% of sales on account will not be collected. During the year, Ralph wrote off a $200 receivable that was determined to be uncollectible. Assume there were no other transactions affecting accounts receivable. Required: a. What amount of cash was collected in Year 1? b. What amount of uncollectible accounts expense was recognized In Year 1? c. What will be Ralph's net realizable value of receivables on the December 31, Year 1 balance sheet? a. Cash collected b. Uncollectible accounts expense c. Net realizable value of receivables
Review the following transactions. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 330 water bottles for their merchandise inventory, on credit, for $14 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier. Prepare any necessary journal entries for Tolbert Enterprises. If an amount box does not require an entry, leave it blank. Apr. 7 Apr. 15
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