Ch7BriefExercises - SOLUTIONS TO BRIEF EXERCISES BRIEF...

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SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 7-1 Cash in bank—savings account. ............................... $68,000 Cash on hand. ............................................................. 9,300 Checking account balance. ........................................ 17,000 Cash to be reported. ................................................... $94,300 BRIEF EXERCISE 7-2 June 1 Accounts Receivable. ........................... 50,000 Sales. ............................................. 50,000 June 12 Cash. ....................................................... 48,500* Sales Discounts. ................................... 1,500 Accounts Receivable. .................. 50,000 *$50,000 – ($50,000 X .03) = $48,500 BRIEF EXERCISE 7-3 June 1 Accounts Receivable. ........................... 48,500* Sales. ............................................. 48,500 June 12 Cash. ....................................................... 48,500 Accounts Receivable. .................. 48,500
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*$50,000 – ($50,000 X .03) = $48,500
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BRIEF EXERCISE 7-4 Bad Debt Expense. ................................................ 28,000 Allowance for Doubtful Accounts ($1,400,000 X 2%). ..................................... 28,000 BRIEF EXERCISE 7-5 (a) Bad Debt Expense. .......................................... 22,600 Allowance for Doubtful Accounts [(10% X $250,000) – $2,400]. ............... 22,600 (b) Bad Debt Expense. .......................................... 22,200 Allowance for Doubtful Accounts ($24,600 – $2,400). ............................... 22,200 BRIEF EXERCISE 7-6 11/1/10 Notes Receivable. ................................... 30,000 Sales. .............................................. 30,000 12/31/10 Interest Receivable. ................................ 300 Interest Revenue ($30,000 X 6% X 2/12). ............... 300 5/1/11 Cash. ........................................................ .................................................................. 30,900
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This note was uploaded on 02/14/2011 for the course ACCT 251 taught by Professor Bouker during the Spring '11 term at Bergen Community College.

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Ch7BriefExercises - SOLUTIONS TO BRIEF EXERCISES BRIEF...

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