Assignment 10 - Assignment10 Student MatthewToenjes...

12/7/2014 Assignment 10
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Assignment: Assignment 10 Student: Matthew Toenjes
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Assignment score: 100%
Total Time spent: 5 hours, 22 minutes, 41 seconds
Score for selected take: 100% (21/21)
Time spent on selected take:
1.
Your answer:
Sales Discounts: Gross Method
On January 16, two credit sales were made, one for $300 and one for $400. Terms for both sales were
3/15, n/30. Cash for the $300 sale was collected on January 25; cash for the $400 sale was collected
on February 14.
Make all journal entries necessary to record both the sales and the cash collections. Use the gross
method of accounting for sales discounts. If an amount box does not require an entry, leave it blank.
Jan. 16 Accounts Receivable 700
Sales 700
Jan. 25 Cash
291 blank
Sales Discounts
9 blank
Accounts Receivable
blank 300
Feb. 14 Cash
400
Accounts Receivable
400

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2.
Your answer:
Estimation and Recognition of Warranty Expense
Historically, warranty expenditures have been equal to 4% of sales. Total sales for the year were
$650,000. Actual warranty repairs made during the year totaled $29,000.
Make the necessary summary journal entries to (a) record warranty expense and (b) record actual
repairs.
(a)
(b) Estimated Warranty Liability
3.
Your answer:
Sales Discounts
On November 1, Rosario Company sold goods on account for $7,000. The terms of the sale were 3/10,
n/40. Payment in satisfaction of $3,000 of this amount was received on November 9. Payment in
satisfaction of the remaining $4,000 was received on December 9.
1. How much cash did Rosario Company collect from this $7,000 account?

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2. Using the gross method, what journal entries would Rosario make on November 9 and December
9? If an amount box does not require an entry, leave it blank.
3. Using the net method, what journal entries would Rosario make on November 9 and December 9?
If an amount box does not require an entry, leave it blank.
November 9 Cash 2910
Accounts Receivable 2910
December 9 Cash
4000 blank
Accounts Receivable
blank 3880
Sales Discounts Not Taken
blank 120
4.

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Your answer:
Exercise 8­34
Percentage­of­Completion and Completed Contract Methods of Income Recognition