Business Finance
Accounting homework help

Question Description

Accounting

Unformatted Attachment Preview

Brief Exercise 9-2 Record the following transactions on the books of RAS Co. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) On July 1, RAS Co. sold merchandise on account to Waegelein Inc. for $17,200, terms 2/10, n/30. (b) On July 8, Waegelein Inc. returned merchandise worth $3,800 to RAS Co. (c) On July 11, Waegelein Inc. paid for the merchandise. (a) Account Titles and Explanation Debit Credit (a) (b) (c) Brief Exercise 9-4 At the end of 2014, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2015, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off $ After Write-Off $ Cash realizable value Brief Exercise 9-6 Farr Co. elects to use the percentage-of-sales basis in 2014 to record bad debt expense. It estimates that 2% of net credit sales will become uncollectible. Sales revenues are $800,000 for 2014, sales returns and allowances are $40,000, and the allowance for doubtful accounts has a credit balance of $9,000. Prepare the adjusting entry to record bad debt expense in 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Brief Exercise 9-9 Compute interest and find the maturity date for the following notes. (Use 360 days for calculation.) Date of Note Principal Interest Rate (%) Terms (a) June 10 $80,000 6% 60 days (b) July 14 $64,000 7% 90 days (c) April 27 $12,000 8% 75 days Interest Maturity Date $ $ $ Exercise 9-3 The ledger of Costello Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $20,000. If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Dole’s $1,400 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No.Account Titles and Explanation (1) Debit Credit (2) If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles No.and Explanation (1) Debit Credit (2) Exercise 9-7 Presented below are two independent situations. On March 3, Kitselman Appliances sells $650,000 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances’ books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 3 On May 10, Fillmore Company sold merchandise for $3,000 and accepted the customer’s America Bank MasterCard. America Bank charges a 4% service charge for credit card sales. Prepare the entry on Fillmore Company’s books to record the sale of merchandise.(Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date May 10 Account Titles and Explanation Debit Credit Exercise 9-8 Presented below are two independent situations. On April 2, Jennifer Elston uses her JCPenney Company credit card to purchase merchandise from a JCPenney store for $1,500. On May 1, Elston is billed for the $1,500 amount due. Elston pays $500 on the balance due on May 3. On June 1, Elston receives a bill for the amount due, including interest at 1.0% per month on the unpaid balance as of May 3. Prepare the entries on JCPenney Co.’s books related to the transactions that occurred on April 2, May 3, and June 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Apr. 2 Debit Credit May 3 June 1 On July 4, Spangler’s Restaurant accepts a Visa card for a $200 dinner bill. Visa charges a 2% service fee. Prepare the entry on Spangler’s books related to this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and Explanation July 4 Debit Credit ...
Purchase answer to see full attachment

Final Answer

Brief Exercise 9-2
Record the following transactions on the books of RAS Co. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
(a)

On July 1, RAS Co. sold merchandise on account to Waegelein Inc. for $17,200, terms 2/10, n/30.

(b)

On July 8, Waegelein Inc. returned merchandise worth $3,800 to RAS Co.

(c)

On July 11, Waegelein Inc. paid for the merchandise.
Account Titles and
Explanation

Debit

Credit

(a)

(b)

(c)

Brief Exercise 9-4
At the end of 2014, Carpenter Co. has accounts receivable of
$700,000 and an allowance for doubtful accounts of $54,000. On
January 24, 2015, the company learns that its receivable from Megan
Gray is not collectible, and management authorizes a write-off of
$6,200.

Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Account Titles and Explanation

Debit

Credit

Brief Exercise 9-6
Farr Co. elects to use the percenta...

Prof Den (273)
New York University

Anonymous
I was on a very tight deadline but thanks to Studypool I was able to deliver my assignment on time.

Anonymous
The tutor was pretty knowledgeable, efficient and polite. Great service!

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Questions
Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors