XYZ Ltd. Sold $24,000 worth of goods to a customer on credit. A week later, the customer returned $1,360 worth of goods. Ten days later, the customer paid 75% of the outstanding balance as of that day. Subsequently, the customer went bankrupt and XYZ Ltd. Could not collect the ramaining amount and so had to write-off Please prepare all necessary journal entries to record the transactions.

XYZ Ltd. Sold $24,000 worth of goods to a customer on credit. A week later, the customer returned $1,360 worth of goods. Ten days later, the customer paid 75% of the outstanding balance as of that day. Subsequently, the customer went bankrupt and XYZ Ltd. Could not collect the ramaining amount and so had to write-off Please prepare all necessary journal entries to record the transactions.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4EA: Window World extended credit to customer Nile Jenkins in the amount of $130,900 for his purchase of...

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Keiasia Coates Company sold merchandise for $2,000. The cost of the merchandise was $1,500. Five days later, the customer returns 20% of the merchandise, which is defective, and is not restored to Keasia Company’s merchandise inventory. On day 10, the customer sends a check for the amount due. Assuming the net method, indicate how these transactions combined would affect the following five financial statement items: assets, liabilities, owners equity, revenue, and expenses? Answer: assets:increase, Liabilities: decrease, owners equity:increase, revenue:increase, expenses: increase why and how would liabilites be decreased in this scenario? explain process to answer of this problem
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How to do this, please explain. Thank you.
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