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College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
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Question
Chapter 9, Problem 1PB
1.
To determine
Prepare
1.
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
Merchandise Inventory:
Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a trader, to be sold within a year. Merchandise Inventory is a current asset account which includes all the costs incurred to acquire merchandise, and process it further for sale.
Date | Account Titles and explanation | Post.Ref | Debit ($) | Credit ($) |
March 4 | 113 | 47.25 | ||
Sales | 411 | 45.00 | ||
Sales tax payable | 214 | 2.25 | ||
(To record the sale of merchandise to Company D, sales slip no.236) | ||||
March 7 | Accounts receivable | 113 | 64.05 | |
Sales | 411 | 61.00 | ||
Sales tax payable | 214 | 3.05 | ||
(To record the sale of merchandise to Company C, sales slip no.272) | ||||
March 12 | Accounts receivable | 113 | 66.15 | |
Sales | 411 | 63.00 | ||
Sales tax payable | 214 | 3.15 | ||
(To record the sale of merchandise to Company A, sales slip no.294) | ||||
March 17 | Accounts receivable | 113 | 178.50 | |
Sales | 411 | 170.00 | ||
Sales tax payable | 214 | 8.50 | ||
(To record the sale of merchandise to Company T, sales slip no.299) | ||||
March 20 | Sales returns and allowances | 412 | 36.00 | |
Sales tax payable | 214 | 1.80 | ||
Accounts receivable | 113 | 37.80 | ||
(To record the issuance of credit memo no.27) | ||||
March 21 | Accounts receivable | 113 | 247.80 | |
Sales | 411 | 236.00 | ||
Sales tax payable | 214 | 11.80 | ||
(To record the sale of merchandise to Company P, sales slip no.310) | ||||
March 22 | Sales returns and allowances | 412 | 25.00 | |
Sales tax payable | 214 | 1.25 | ||
Accounts receivable | 113 | 26.25 | ||
(To record the issuance of credit memo no.28) | ||||
March 27 | Accounts receivable | 113 | 31.50 | |
Sales | 411 | 30.00 | ||
Sales tax payable | 214 | 1.50 | ||
(To record the sale of merchandise to Company B, sales slip no.332) |
Table (1)
2.
To determine
2.
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
Accounts Receivable Account No: 113 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 1 | Balance | 111.22 | ||||
4 | 28.35 | 139.57 | |||||
6 | 56.70 | 196.27 | |||||
12 | 16.80 | 213.07 | |||||
16 | 109.20 | 322.27 | |||||
18 | 273.00 | 595.27 | |||||
21 | 31.50 | 563.77 | |||||
23 | 189.00 | 752.77 | |||||
24 | 26.25 | 726.52 | |||||
Table (2)
Sales tax payable Account No: 214 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 1 | Balance | 72.84 | ||||
4 | 1.35 | 74.19 | |||||
6 | 2.70 | 76.89 | |||||
12 | 0.80 | 77.69 | |||||
16 | 5.20 | 82.89 | |||||
18 | 13.00 | 95.89 | |||||
21 | 1.50 | 94.39 | |||||
23 | 9.00 | 103.39 | |||||
24 | 1.25 | 102.14 |
Table (3)
Sales Account No: 411 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 4 | 27.00 | 27.00 | ||||
6 | 54.00 | 81.00 | |||||
12 | 16.00 | 97.00 | |||||
16 | 104.00 | 201.00 | |||||
18 | 260.00 | 461.00 | |||||
23 | 180.00 | 641.00 |
Table (4)
Sales returns and allowance Account No: 412 | |||||||
Date | Item | Post ref. | Debit | Credit | Balance | ||
Debit | Credit | ||||||
March | 21 | 30.00 | 30.00 | ||||
24 | 25.00 | 55.00 |
Table (5)
Accounts receivable ledger | ||||||
Name : Company A | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 34.22 | |||
16 | 66.15 | 100.37 |
Table (6)
Accounts receivable ledger | ||||||
Name : Company B | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 27 | 31.50 | 31.50 | |||
Table (7)
Accounts receivable ledger | ||||||
Name : Company D | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 4 | 47.25 | 47.25 | |||
Table (8)
Accounts receivable ledger | ||||||
Name : Company M | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 19.50 | |||
7 | 64.05 | 83.55 |
Table (9)
Accounts receivable ledger | ||||||
Name : Company P | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 1 | Balance | 57.50 | |||
21 | 247.80 | 305.30 | ||||
22 | 26.25 | 279.05 |
Table (10)
Accounts receivable ledger | ||||||
Name : Company T | ||||||
Date | Item | Post Ref. | Debit | Credit | Balance | |
March | 17 | Balance | 178.50 | 178.50 | ||
20 | 37.80 | 140.70 |
Table (11)
3.
To determine
Prepare Company A’s schedule of accounts receivable and compare the total with accounts receivable controlling ledger.
3.
Expert Solution
![Check Mark](/static/check-mark.png)
Explanation of Solution
Prepare Company A’s schedule of accounts receivable:
Company A | |
Schedule of accounts receivable | |
March 31,20-- | |
Particulars | Amount in $ |
Company A | 100.37 |
Company B | 31.50 |
Company D | 47.25 |
Company M | 83.55 |
Company P | 279.05 |
Company T | 140.70 |
Total accounts receivable | 682.42 |
(Table 12)
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Chapter 9 Solutions
College Accounting (Book Only): A Career Approach
Ch. 9 - Which of the following is true about the Sales...Ch. 9 - What is the accounts receivable ledger? a. A...Ch. 9 - Using the information contained in the accounts...Ch. 9 - Prob. 4QYCh. 9 - What does the 2 in 2/10, n/30 mean? a. Pay in 2...Ch. 9 - Prob. 6QYCh. 9 - The schedule of accounts payable lists each...Ch. 9 - If the seller assumes the entire cost of...Ch. 9 - Under the perpetual inventory system, how does the...Ch. 9 - Purchases on account of merchandise for resale...
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