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Unformatted text preview: CHAPTER 6 - HOMEWORK HANDOUT The following data were selected from the records of Tressel Company for the month of September. Balances as of September 1st: Accounts Receivable (various customers) $ 40,000 Allowance for Doubtful Accounts (on the credit side) $ 2,000 Credit terms for all credit sales were 2/10, n/30. Assume a unit sales price of $500 in all transactions. [For the sake of simplicity, you can disregard the effect that each sale has on inventory and cost of goods sold.] Transactions during September: 9-3: Sold merchandise on account to M. Jenkins; invoice price, $12,000. 9-5: Sold merchandise on account to C. Krenzel; invoice price, $20,000. 9-7: M. Jenkins returned two of the units that he purchased on 9-3. 9-12: Sold merchandise for cash, $10,000. 9-13: Collected the full amount owed by C. Krenzel. 9-16: Wrote-off a $1,500 account related to a sale made to M. Clarett in May....
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- Fall '08
- Financial Accounting