4th Edition

ISBN: 9781337690881

Author: Jay Rich, Jeff Jones

Publisher: Cengage Learning

Concept explainers

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Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

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Adjustment Entries

At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial repor…

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Textbook Question

Chapter 5, Problem 58BE

( Appendix 5A) Sales Discounts

Harry Gardner provides tax services for small businesses. This year’s tax season has proved especially lucrative for Harry; he earned $45,000 for providing his services. Harry uses terms of 1/10, n/30 in billing his customers.

Required:

1. Prepare the necessary journal entries to record the sale, assuming Harry does not expect his customers to pay within the discount period.

2. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays within 10 days.

3. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays after 10 days.

Expert Solution & Answer

Chapter 5 Solutions

Cornerstones of Financial Accounting

Ch. 5 - When is revenue recognized?Ch. 5 - When is a performance obligation satisfied?Ch. 5 - At what amount should sales revenue be recorded...Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Why is the direct write-off method not GAAP?

Ch. 5 - Prob. 11DQ Ch. 5 - Prob. 12DQ Ch. 5 - Prob. 13DQ Ch. 5 - How much interest will be due at maturity for each...Ch. 5 - A business borrows $1,000, signing a note that...Ch. 5 - Prob. 16DQ Ch. 5 - Describe what happens when receivables are...Ch. 5 - Prob. 18DQ Ch. 5 - Prob. 19DQ Ch. 5 - Prob. 20DQ Ch. 5 - Prob. 21DQ Ch. 5 - How may analyzing sales and receivables provide...Ch. 5 - Prob. 23DQ Ch. 5 - Prob. 1MCQ Ch. 5 - When is revenue from the sale of merchandise...Ch. 5 - What does the phrase, Revenue is recognized at the...Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 6MCQ Ch. 5 - Prob. 7MCQ Ch. 5 - All of the following are ways in which receivables...Ch. 5 - Which one of the following best describes the...Ch. 5 - If a company uses the direct write-off method of...Ch. 5 - Prob. 11MCQ Ch. 5 - Which of the following best describes the concept...Ch. 5 - The aging method is closely related to the a....Ch. 5 - Prob. 14MCQ Ch. 5 - Prob. 15MCQ Ch. 5 - Prob. 16MCQ Ch. 5 - Zenephia Corp. accepted a 9-month note receivable...Ch. 5 - Prob. 18MCQ Ch. 5 - Prob. 19MCQ Ch. 5 - ( Appendix 5A) Under the gross method, the seller...Ch. 5 - Service Revenue Kibitz Fitness received S30000...Ch. 5 - Service Revenue Softball Magazine Company received...Ch. 5 - Prob. 23CE Ch. 5 - Prob. 24CE Ch. 5 - Percentage of Credit Sales Clarissa Company has...Ch. 5 - Write-Off of Uncollectible Accounts The Rock has...Ch. 5 - Aging Method On January 1, 2019, Hungryman Inc....Ch. 5 - Aging Method On January 1, 2019, Smith Inc. has...Ch. 5 - Prob. 29CE Ch. 5 - Prob. 30CE Ch. 5 - Accounts Receivable Balance Beginning accounts...Ch. 5 - Accounts Receivable Balance Beginning accounts...Ch. 5 - Prob. 33CE Ch. 5 - Notes Receivable Metzler Communications designs...Ch. 5 - Notes Receivable Link Communications programs...Ch. 5 - Ratio Analysis The following information pertains...Ch. 5 - Ratio Analysis Diviney Corporations net sales and...Ch. 5 - Prob. 38CE Ch. 5 - Service Revenue H**R Wholesalers is a retailer...Ch. 5 - Service Revenue Melrose Milk Delivery provides...Ch. 5 - Prob. 41BE Ch. 5 - Prob. 42BE Ch. 5 - Prob. 43BE Ch. 5 - Write-Off of Uncollectible Accounts King...Ch. 5 - Aging Method Spotted Singer sells karaoke machines...Ch. 5 - Aging Method Ingrid Inc. has strict credit...Ch. 5 - Percentage of Credit Sales Method Ruby Red...Ch. 5 - Collection of Amounts Previously Written Off...Ch. 5 - Accounts Receivable Balance Hart Inc. began the...Ch. 5 - Accounts Receivable Balance XYZ Corp sells widgets...Ch. 5 - Accounts Receivable Balance Rays beginning and...Ch. 5 - Prob. 52BE Ch. 5 - Prob. 53BE Ch. 5 - Prob. 54BE Ch. 5 - Ratio Analysis Dobbys income statement lists net...Ch. 5 - Ratio Analysis Rose Corporation sells upscale...Ch. 5 - Prob. 57BE Ch. 5 - ( Appendix 5A) Sales Discounts Harry Gardner...Ch. 5 - ( Appendix 5A) Sales Discounts Ramsden Inc....Ch. 5 - Calculation of Revenue Wallace Motors buys and...Ch. 5 - Prob. 61E Ch. 5 - Calculation of Revenue from Cash Collection...Ch. 5 - Prob. 63E Ch. 5 - Sales and Sales Returns and Allowances Rubin...Ch. 5 - Average Uncollectible Account Losses and Bad Debt...Ch. 5 - Bad Debt Expense: Percentage of Credit Sales...Ch. 5 - Prob. 67E Ch. 5 - Bad Debt Expense: Aging Method Glencoe Supply had...Ch. 5 - Aging Receivables and Bad Debt Expense Perkinson...Ch. 5 - Allowance for Doubtful Accounts At the beginning...Ch. 5 - Collection of Amounts Previously Written Off...Ch. 5 - Prob. 72E Ch. 5 - Accounting for Notes Receivable On November 30,...Ch. 5 - Recording Notes Receivable: Issuance, Payment, and...Ch. 5 - Prob. 75E Ch. 5 - Ratio Analysis The following information was taken...Ch. 5 - Ratio Analysis The following information was taken...Ch. 5 - Prob. 78E Ch. 5 - Prob. 79APSA Ch. 5 - Prob. 80APSA Ch. 5 - Prob. 81APSA Ch. 5 - Prob. 82APSA Ch. 5 - Bad Debt Expense: Percentage of Credit Sales...Ch. 5 - Aging Method Bad Debt Expense Cindy Bagnal, the...Ch. 5 - Determining Bad Debt Expense Using the Aging...Ch. 5 - Accounting for Notes Receivable Yarnell...Ch. 5 - Prob. 87APSA Ch. 5 - Prob. 88APSA Ch. 5 - Prob. 79BPSB Ch. 5 - Prob. 80BPSB Ch. 5 - Prob. 81BPSB Ch. 5 - Prob. 82BPSB Ch. 5 - Prob. 83BPSB Ch. 5 - Aging Method Bad Debt Expense Carol Simon, the...Ch. 5 - Determining Bad Debt Expense Using the Aging...Ch. 5 - Prob. 86BPSB Ch. 5 - Prob. 87BPSB Ch. 5 - Prob. 88BPSB Ch. 5 - Ethics and Revenue Recognition Alan Spalding is...Ch. 5 - Prob. 89.2C Ch. 5 - Prob. 89.3C Ch. 5 - Prob. 90.1C Ch. 5 - Prob. 90.2C Ch. 5 - Prob. 90.3C Ch. 5 - Prob. 91C Ch. 5 - Prob. 92.1C Ch. 5 - Prob. 92.2C Ch. 5 - Prob. 93.1C Ch. 5 - Prob. 93.2C Ch. 5 - Prob. 94.1C Ch. 5 - Prob. 94.2C Ch. 5 - Prob. 95.1C Ch. 5 - Prob. 95.2C Ch. 5 - Prob. 95.3C Ch. 5 - Prob. 95.4C Ch. 5 - Prob. 95.5C Ch. 5 - Prob. 95.6C Ch. 5 - Prob. 95.7C Ch. 5 - Comparative Analysis: Under Armour, Inc., versus...Ch. 5 - Prob. 96.2C Ch. 5 - Prob. 96.3C Ch. 5 - Prob. 96.4C Ch. 5 - Prob. 96.5C Ch. 5 - Prob. 96.6C Ch. 5 - Prob. 97.1C Ch. 5 - Prob. 97.2C

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Solution Summary: The author explains the sales discounts and adjusting entries for recording sales revenue. The service contract has a price of 45,000 and the discount for the early payment is

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Chapter 5 Solutions