2.18 Accounting 211 - Accounting 211 Thursday February 18th 1999 Announcements none Lecture notes Example Refer back to problem on During 1998 it

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Accounting 211 Thursday, February 18th, 1999 Announcements: none Lecture notes: Example: Refer back to problem on 2/16/99: During 1998 it is determined that customer A is unable to pay the $500 due to the NL Corporation. Allowances for Uncollectable Accounts 500 Accounts Receivable 500 *NO CHANGE in Net Accounts Receivable 12/1/98 The NL corporation received a 3 month note for $10,000 from a customer for the sale if merchandise. The Interest Rate = 12%
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Notes Receivable 10,000 Sales 10,000 12/31/98 Recognize the Interest earned to date.
Background image of page 2
Interest Receivable 100 Interest Income 100 3/1/99
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cash 10,300 Notes Receivable 10,000 Interest Receivable 100 Interest Income 200
Background image of page 4
Example: A computer costing $8,000 was purchased on 9/1/98 (cash was paid). The following (incorrect) Journal Entry was made. What were the errors that resulted? Computer Supplies Expense 8,000 Cash 8,000 Income Statement Expenses too high, Net Income too low 12/31/98 Balance Sheet Assets too low, SE too low Page 364, Problem A2 d.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/20/2008 for the course ACCTG 211 taught by Professor Johnston during the Spring '99 term at Pennsylvania State University, University Park.

Page1 / 18

2.18 Accounting 211 - Accounting 211 Thursday February 18th 1999 Announcements none Lecture notes Example Refer back to problem on During 1998 it

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online