Chap7soln[1]

Chap7soln[1] - BRIEF EXERCISE 7-1 Cash in bank—savings...

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Unformatted text preview: BRIEF EXERCISE 7-1 Cash in bank—savings account $63,000 Cash on hand 9,300 Checking account balance 17,000 Cash to be reported $89,300 BRIEF EXERCISE 7-2 June 1 Accounts Receivable .................................................... 40,000 Sales ...................................................................... 40,000 June 12 Cash ............................................................................... 38,800* Sales Discounts ............................................................ 1,200 Accounts Receivable ........................................... 40,000 *$40,000 – ($40,000 X .03) = $38,800 BRIEF EXERCISE 7-3 June 1 Accounts Receivable .................................................... 38,800* Sales ...................................................................... 38,800 June 12 Cash ............................................................................... 38,800 Accounts Receivable ........................................... 38,800 BRIEF EXERCISE 7-4 Bad Debt Expense................................................................................ 24,000 Allowance for Doubtful Accounts.......................................... 24,000 ($1,200,000 X 2% = $24,000) BRIEF EXERCISE 7-5 (a) Bad Debt Expense..................................................................... 22,900 Allowance for Doubtful Accounts............................... 22,900 [(10% X $250,000) – $2,100] (b) Bad Debt Expense..................................................................... 22,500 Allowance for Doubtful Accounts............................... 22,500 ($24,600 – $2,100) BRIEF EXERCISE 7-6 11/1/07 Notes Receivable.......................................................... 20,000 Sales................................................................. 20,000 12/31/07 Interest Receivable....................................................... 200 Interest Revenue.............................................. 200 ($20,000 X 6% X 2/12) 5/1/08 Cash .......................................................................... 20,600 Notes Receivable............................................. 20,000 Interest Receivable.......................................... 200 Interest Revenue.............................................. 400 BRIEF EXERCISE 7-7 Notes Receivable................................................................................................... 20,000 Discount on Notes Receivable................................................................ 4,056 Cash.......................................................................................................... 15,944 Discount on Notes Receivable............................................................................. 1,913 Interest Revenue......................................................................................Interest Revenue....
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This note was uploaded on 08/31/2010 for the course AEM 3360 at Cornell.

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Chap7soln[1] - BRIEF EXERCISE 7-1 Cash in bank—savings...

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