Ultra Day Spa provided $87,050 of services during Year 1. All customers paid forthe services with credit cards. Ultra submitted the credit card receipts to thecredit card company immediately. The credit card company paid Ultra cash inthe amount of face value less a 3 percent service charge.Requireda. Show the credit card sales (Event 1) and the subsequent collection of accountsreceivable (Event 2) in a horizontal statements model like the one shown next. Inthe Statement of Cash Flows column, indicate whether the item is an operatingactivity (OA), investing activity (IA), or financing activity (FA). (Enter any decreasesto account balances with a minus sign. Not all cells in the "Statement of CashFlows" column may require an input - leave cells blank if there is nocorresponding input needed.)Event1.2.CashULTRA DAY SPAHorizontal Statements ModelIncome StatementBalance SheetStatement ofAssetsLlab.Acct. Rec.EquityRet. Ear.RevenueExpense = Net IncomeCash Flows

Let's fill out the horizontal statements model step by step.Event 1: Credit Card SalesRevenue…

Answered: Ultra Day Spa provided $87,050 of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4Q: American Signs allows customers to pay with their Jones credit card and cash. Jones charges American...

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Similar questions

Sales-Related Transactions, Including the Use of Credit Cards Journalize the entries for the following transactions:
On March 29, Jangles Corporation received a $21,800 invoice dated March 26. Cash discount terms were 4/10, n/30. On April 02, Jangles sent an $8,720 partial payment.a. What credit should Jangles receive? (Round your answer to the nearest cent.) Credit b. What is Jangles’ outstanding balance? (Round your answer to the nearest cent.) Outstanding Balance
On March 4, Micro Sales makes $4,850 in sales on bank credit cards that charge a 2.5% service charge. Funds are deposited net of credit card expenses into Micro Sales' bank account at the end of the business day. Journalize the sales and recognition of expense as a single journal entry.
On March 4, Micro Sales makes $10,500 in sales on bank credit cards that charge a 2% service charge and deposits the funds into Micro Sales' bank accounts at the end of the business day. Required: Journalize the sales and recognition of expense as a single journal entry. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to two decimal places.
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
Good morning tutor. Can you help me with these problem? The subject is Financial Accounting and Reporting. Instruction: Read and Answer the following questions, provide also the solution and detailed explanation on how you come up with the answer. Joseph Company assigned an accounts receivable to a bank in the amount of P1,000,000 on October 1, 20x1, as security for a loan of P800,000. The bank charged a 3% commission on the accounts. The interest rate on the note is 12%. Joseph collected P300,000 on assigned accounts after deducting P50,000 of discounts during the month. Moreover, Joseph wrote off a P53,000 assigned account. Joseph paid to the bank the amount collected plus one (1) month's interest on the note. On October 31, 20x1, Joseph estimated that 8% of the assigned accounts were doubtful in collection. Questions: How much is the doubtful expense to be recognized by Joseph Company for the above transaction? What is Joseph Company’s accounts receivable balance on October 31,…
What was the September 30 balance in the control account?
Beth uses the net invoice method to record sales on account. Beth made sales of $40,000 with terms 3/15, net 45. The customer pays after 25 days. Journalize: Date Accounts Debit Credit
Tanger Company has three customers: E, F, and G. The beginning accounts receivable subsidiary ledger of customers F and G have $2,600 and $1,500, respectively. The beginning Accounts Receivable balance in the general ledger is $12,000. Calculate the ending amount in the accounts receivable subsidiary ledger account of customer E, if customer E also made a $3,900 payment. OA. $4,000 OB. $3,900 OC. $1,500 OD. $2,600
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Wallace Contracting recorded the following transactions during November 2023: Debit Credit 8,500 2,600 General Journal Nov. 3 Accounts Receivable ABC Shop Sales* 8 Accounts Receivable-Colt Enterprises Sales* 11 Accounts Receivable-Red McKenzie Sales* 19 Sales Returns and Allowances* Accounts Receivable-Red Mckenzie 28 Accounts Receivable-ABC Shop Sales* 1,560 214 4,980 8,500 GENERAL LEDGER 2,600 1,560 214 4,980 *Cost of goods sold (or COGS) has been ignored for the purpose of maintaining focus on accounts receivable. Required: 1. Enter the preceding transactions into a General Ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Also, enter the transactions in Accounts Receivable Subledger having a T-account for each customer.

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