CHAPTER 9 - CHAPTER9 BRIEFEXERCISE91(a Accountsreceivable(b...

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

View Full Document Right Arrow Icon
CHAPTER 9 Accounting for Receivables SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 9-1 (a) Accounts receivable. (b) Notes receivable. (c) Other receivables. BRIEF EXERCISE 9-2 (a) Accounts Receivable. ................................................. 17,200 Sales. .................................................................... 17,200 (b) Sales Returns and Allowances. ................................. 3,800 Accounts Receivable. ......................................... 3,800 (c) Cash ($13,400 – $268). ................................................ 13,132 Sales Discount ($13,400 X 2%). ................................. 268 Accounts Receivable ($17,200 – $3,800). .......... 13,400 BRIEF EXERCISE 9-3 (a) Bad Debts Expense. .................................................... 32,000 Allowance for Doubtful Accounts. ..................... 32,000
Background image of page 1

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

View Full Document Right Arrow Icon
(b) Current assets Cash. ............................................................ 90,000 $ Accounts receivable. ................................. $600,000 Less: Allowance for doubtful Accounts ...................................... 32,000 568,000 Merchandise inventory. ............................. 130,000 Prepaid expenses. ...................................... 7,500 Total current assets. .............................. $795,500 BRIEF EXERCISE 9-4 (a) Allowance for Doubtful Accounts. ............................ 6,400 Accounts Receivable. ......................................... 6,400
Background image of page 2
BRIEF EXERCISE 9-4 (Continued) (b) (1) Before Write-Off (2) After Write- Off Accounts receivable Allowance for doubful accounts Cash realizable value $700,000 54,000 $646,000 $693,600 47,600 $646,000 BRIEF EXERCISE 9-5 Accounts Receivable. ......................................................... 6,400 Allowance for Doubtful Accounts. ............................ 6,400 Cash. ..................................................................................... 6,400 Accounts Receivable. ................................................. 6,400 BRIEF EXERCISE 9-6 Bad Debts Expense [($800,000 – $37,000) X 2%]. ............ 15,260 Allowance for Doubtful Accounts. ............................ 15,260 BRIEF EXERCISE 9-7 (a) Bad Debts Expense [($400,000 X 1%) – $1,500]. ...... 2,500 Allowance for Doubtful Accounts. ..................... 2,500 (b) Bad Debts Expense [($400,000 X 1%) + $800] = 4,800
Background image of page 3

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

View Full Document Right Arrow Icon
BRIEF EXERCISE 9-8 Interest Maturity Date (a) (b) (c) $1,000.00 937.50 $ 200.00 $ August 9 October 12 July 11
Background image of page 4
BRIEF EXERCISE 9-9 Maturity Date Annual Interest Rate Total Interest (a) (b) (c) May 31 August 1 September 7 9% 8% 11% $13,500 $600 $6,600 BRIEF EXERCISE 9-10 (a) Cash ($200 – $8). ......................................................... 192 Service Charge Expense ($200 X 4%). ...................... 8 Sales. .................................................................... 200
Background image of page 5

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

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

{[ snackBarMessage ]}

Page1 / 41

CHAPTER 9 - CHAPTER9 BRIEFEXERCISE91(a Accountsreceivable(b...

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