FINANCIAL ACCT-CONNECT
FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
Question
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Chapter 7, Problem 1PSB
Summary Introduction

Introduction: Journal entry is a technique of booking and recording the financial transaction in chronological manner of any company. Account receivable is an amount of money which company has to receive from someone for any provided service or for sale of product.

To prepare: The general journal entries for the following transaction.

Expert Solution & Answer
Check Mark

Answer to Problem 1PSB

Journal entries are shown below.

Explanation of Solution

Journal entries of A co. for the month of August are shown below.

    DateParticularPRDr.$Cr.$
    Aug 4Account receivable −M.C.3700
    Sales3700
    (to record the sales on credit)
    Cost of goods sold 2000
    Merchandise Inventory2000
    (To record cost of sales)
    Aug 10Cash 5044
    credit card expense(
      $5,200×0.03
    )
    156
    Sales 5200
    (To record credit card sales less fee)
    Cost of goods sold 2800
    Merchandise inventory 2800
    (To record cost of sales)
    Aug 11Cash 1,225
    Credit card expense (
      $1,250×0.02
    )
    25
    Sales 1250
    (To record credit card sales less fee)
    Cost of goods sold 900
    Merchandise 900
    (To record cost of sales)
    Aug 14Cash 3,700
    Account Receivable M.C3,700
    (To record cash received in payment of account)
    Aug 15Cash 3185
    Credit card expense
      ($32,50×0.02)
    65
    Sales3250
    (To record credit card sales less fee)
    Cost of goods sold1758
    Merchandise inventory1758
    (to record cost of sales)
    Aug 22Allowance for doubtful account 498
    Account receivable C Co498
    (to write off account due)
    Aug 25Cash 1225
    Account Receivable G.C1225
    (To record cash received in payment of account)
    Cash 3185
    Account Receivable G.C3185
    (To record cash received in payment of account)

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Chapter 7 Solutions

FINANCIAL ACCT-CONNECT

Ch. 7 - Prob. 1QSCh. 7 - Solstice Company determines on October 1 that it...Ch. 7 - Solstice Company determines on October 1 that it...Ch. 7 - The following list describes aspects of either the...Ch. 7 - Gomez Corp. uses the allowance method to account...Ch. 7 - Prob. 6QSCh. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Accounts receivable subsidiary ledger; schedule of...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Percent of accounts receivable method P2 At each...Ch. 7 - Aging of receivables method P2 Daley Company...Ch. 7 - Percent of receivables method P2 Refer to the...Ch. 7 - Writing off receivables P2 Refer to the...Ch. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Notes receivable transactions P3 Refer to the...Ch. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Prob. 14ECh. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Sales on account and credit card sales C1 Mayfair...Ch. 7 - Estimating and reporting bad debts P2 At December...Ch. 7 - Aging accounts receivable and accounting for bad...Ch. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Santana Rey, owner of Business Solutions, realizes...Ch. 7 - Comparative figures for Apple and Google follow....Ch. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - As the accountant for Pure-Air Distributing, you...Ch. 7 - Access eBays February 6, 2015, filing of its 10-K...Ch. 7 - Prob. 7BTNCh. 7 - Prob. 9BTN
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