Chapter 9 Lecture problem.xlsx - On January 6 Pear Co sells merchandise on account to Portland Inc for \$5,500 terms 2\/10 On what date does Portland Co

# Chapter 9 Lecture problem.xlsx - On January 6 Pear Co sells...

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On January 6, Pear Co. sells merchandise on account to Portland, Inc. for \$5,500 On what date does Portland Co. have to make their payment so that they can tak Record the sale. Date Account Titles Debit Credit 1 1/6 Accounts receivable - Portland 5,500.00 1 2 Sales 5,500.00 2 3 3 4 4 5 5 On January 10, Portland Co. returns merchandise worth \$400 to Pear Co. Record the return. Date Account Titles Debit Credit 1 1/10 Sales returns and allowances 400.00 1 2 Accounts recievable - Portland 400.00 2 3 3 4 4 5 5 On January 15, Pear Co. receives payment from Portland Co. for the balance due Did the payment arrive in time for them to take the discount? Yes How much does Portland Co. owe Pear Co.? 5,500- 400= 5,10 How much discount can Portland Co. take? 2 Record the receipt of payment. Date Account Titles Debit Credit 1 1/15 Cash 4,998.00 1 2 Sales Discount 102.00 2 3 Account recievable - Portland 5,100.00 3 4 4 5 5
0, terms 2/10, n/30. ke the discount? e. 00
Record the sale Date Account Titles Debit 1 1/10 Account receivable - Stewart 65,000.00 2 Sales 3 4 5 On February 10, Stewart is billed for the amount due of \$65,000. Date Account Titles Debit 1 2/10 no entry 2 3 4 5 On February 12, Stewart pays \$30,000 on the balance due. Record the payment Date Account Titles Debit 1 2/12 Cash 30,000.00 2 Accounts recievable - Stewart 3 4 5 Record the accrued interest Interest is calculated on the balance due of 65,000-30,000= 35,00 Date Account Titles Debit 1 3/10 Accounts receivable - Stewart 700.00 2 Interest revenus= i/s 3 4 5 On January 10, Martha Stewart uses her Apple Co. credit card to purc merchandise from Apple Co. for \$65,000. On March 10, Stewart is billed for the remaining amount due, includin 2% per month on the unpaid balance as of February 12.
How much does Stewart owe as of March 10? 35,000 + 700= 3
Credit 1 65,000.00 2 3 4 Notes: Credit card are way for a c 5 Credit 1 2 3 4 5 Credit 1 30,000.00 2 3 4 5 00 x 2%= 700 interest Credit 1 700.00 2 3 4 5 chase ng interest at
35,700
company to sell merchandise when the customer has no money. If you don’t
pay your balance off when due you'll be charged interest on the balance.
Direct Write-off Method Date Account Titles Debit 1 2 3 4 5 Percentage-of-sales Method Date Account Titles Debit 1 12/31 Bad debt expense 17,400.00 2 Allowance for doubtful accounts 3 (B/S - contra asset account) 4 (1,800- 60,000= 1,740,000 x 1%) 5 Date Account Titles Debit

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• Fall '18
• Mrs. Hess
• Revenue, Debt, Generally Accepted Accounting Principles, Doubtful Accounts

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