Fundamental Accounting Principles
24th Edition
ISBN: 9781259916960
Author: Wild, John J., Shaw, Ken W.
Publisher: Mcgraw-hill Education,
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Chapter 9, Problem 1BPSB
To determine
Concept Introduction:
Credit and debit card sales:
In case of sales through credit or debit card the company usually hires a third party that processes the transactions and company keeps a card scanner to initiate the transaction. The type of transaction depends upon the card used. The third party charges processing fees for processing the payments and crediting amount in the account of the seller company.
To Prepare:
The
Expert Solution & Answer
Answer to Problem 1BPSB
The Journal entries for the given transactions are as follows:
| Archer Company | |||
| Journal entries | |||
| Date | Account titles | Debit | Credit |
| Aug. 4 | $ 3,700.00 | ||
| Sales Revenue | $ 3,700.00 | ||
| Cost of Goods Sold | $ 2,000.00 | ||
| Merchandise Inventory | $ 2,000.00 | ||
| Aug. 10 | Cash | $ 5,044.00 | |
| Credit Card fees | $ 156.00 | ||
| Sales Revenue | $ 5,200.00 | ||
| Cost of Goods Sold | $ 2,800.00 | ||
| Merchandise Inventory | $ 2,800.00 | ||
| Aug. 11 | Cash | $ 1,225.00 | |
| Credit Card fees | $25.00 | ||
| Sales Revenue | $ 1,250.00 | ||
| Cost of Goods Sold | $ 900.00 | ||
| Merchandise Inventory | $ 900.00 | ||
| Aug. 14 | Cash | $ 3,700.00 | |
| Accounts receivable- Mckenzie Carpenter | $ 3,700.00 | ||
| (Being payment received in full ) | |||
| Aug. 15 | Cash | $ 3,185.00 | |
| Credit Card fees | $65.00 | ||
| Sales Revenue | $ 3,250.00 | ||
| Cost of Goods Sold | $ 1,758.00 | ||
| Merchandise Inventory | $ 1,758.00 | ||
| Aug. 22 | Allowance for doubtful accounts | $ 498.00 | |
| Accounts Receivable- Craw Co. | $ 498.00 | ||
Explanation of Solution
The Journal entries for the given transactions are explained as follows:
| Archer Company | |||
| Journal entries | |||
| Date | Account titles | Debit | Credit |
| Aug. 4 | Accounts receivable- Mckenzie Carpenter | $ 3,700.00 | |
| Sales Revenue | $ 3,700.00 | ||
| (Being merchandise sold on account) | |||
| Cost of Goods Sold | $ 2,000.00 | ||
| Merchandise Inventory | $ 2,000.00 | ||
| (Being merchandise sold) | |||
| Aug. 10 | Cash (5200-156) | $ 5,044.00 | |
| Credit Card fees (5200*3%) | $ 156.00 | ||
| Sales Revenue | $ 5,200.00 | ||
| (Being merchandise sold on credit card) | |||
| Cost of Goods Sold | $ 2,800.00 | ||
| Merchandise Inventory | $ 2,800.00 | ||
| (Being merchandise sold) | |||
| Aug. 11 | Cash (1250-25) | $ 1,225.00 | |
| Credit Card fees (1250*2%) | $25.00 | ||
| Sales Revenue | $ 1,250.00 | ||
| (Being merchandise sold on credit card) | |||
| Cost of Goods Sold | $ 900.00 | ||
| Merchandise Inventory | $ 900.00 | ||
| (Being merchandise sold) | |||
| Aug. 14 | Cash | $ 3,700.00 | |
| Accounts receivable- Mckenzie Carpenter | $ 3,700.00 | ||
| (Being payment received in full ) | |||
| Aug. 15 | Cash (3250-65) | $ 3,185.00 | |
| Credit Card fees (3250*2%) | $65.00 | ||
| Sales Revenue | $ 3,250.00 | ||
| (Being merchandise sold on credit card) | |||
| Cost of Goods Sold | $ 1,758.00 | ||
| Merchandise Inventory | $ 1,758.00 | ||
| (Being merchandise sold) | |||
| Aug. 22 | Allowance for doubtful accounts | $ 498.00 | |
| Accounts Receivable- Craw Co. | $ 498.00 | ||
| (Being uncollectible account written off) | |||
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Chapter 9 Solutions
Fundamental Accounting Principles
Ch. 9 - Prob. 1DQCh. 9 - Why does the direct write-off method of accounting...Ch. 9 - Prob. 3DQCh. 9 - Why might a business prefer a note receivable to...Ch. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - J Refer to the financial statements and notes of...Ch. 9 - GOOGLE 8. Q Refer to the balance sheet of Google...Ch. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Credit card sales Prepare journal entries for the...Ch. 9 - Direct write-off method P1 Solstice Company...Ch. 9 - Recovering a bad debt P1 Solstice Company...Ch. 9 - Distinguishing between allowance method and direct...Ch. 9 - Allowance method for bad debts P2 Gomez Corp. uses...Ch. 9 - Reporting allowance for doubtful accounts P2 On...Ch. 9 - Prob. 7QSCh. 9 - Prob. 8QSCh. 9 - Aging of receivables method P3 ^ Net Zero...Ch. 9 - Prob. 10QSCh. 9 - Prob. 11QSCh. 9 - QS 9-9
Note receivable honored
P4
On August 2, Jun...Ch. 9 - Prob. 13QSCh. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Exercise 9-1
Accounts receivable subsidiary...Ch. 9 - Prob. 2ECh. 9 - Exercise 9-3
Sales on store credit card
C1
Z-Mart...Ch. 9 - Exercise 9-4
Direct write-off method
Dexter...Ch. 9 - Exercise 9-5 Writing off receivables P2
On January...Ch. 9 - Exercise 9-6 Percent of sales method; write-off...Ch. 9 - Exercise 9-7 Percent of accounts receivable...Ch. 9 - Exercise 9-8 Aging of receivables method P3
Daley...Ch. 9 - Exercise 9-9 Percent of receivables method...Ch. 9 - Exercise 9-10 Aging of receivables schedule...Ch. 9 - Exercise 9-10
Estimating bad debts
P3
At December...Ch. 9 - Exercise 9-11
Notes receivable...Ch. 9 - Exercise 9-12
Notes receivable transactions...Ch. 9 - Exercise 9-14 Honoring a note P4
Prepare journal...Ch. 9 - Exercise 9-15 Dishonoring a note P4
Prepare...Ch. 9 - Exercise 9-16 Selling and pledging accounts...Ch. 9 - Exercise 9-17 Accounts receivable turnover A1 Q...Ch. 9 - Problem 9-1A Sales on account and credit card...Ch. 9 - Problem 9-2A Estimating and reporting bad debts P2...Ch. 9 - Problem 9-3A Aging accounts receivable and...Ch. 9 - Problem 9-4A Accounts receivable transactions and...Ch. 9 - Problem 9-5A Analyzing and journalizing notes...Ch. 9 - Problem 9-1B Sales on account and credit card...Ch. 9 - Problem 9-2B Estimating and reporting bad debts P2...Ch. 9 - Problem 9-3B Aging accounts receivable and...Ch. 9 - Problem 9-4B Accounts receivable transactions and...Ch. 9 - Prob. 5BPSBCh. 9 - SP 9 Santana Rey: owner of Business Solutions,...Ch. 9 - Prob. 1GLPCh. 9 - Prob. 1AACh. 9 - Prob. 2AACh. 9 - Prob. 3AACh. 9 - Anton Blair is the manager of a medium-size...Ch. 9 - Prob. 2BTNCh. 9 - Prob. 3BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTNCh. 9 - Many commercials ¡include comments similar to the...
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