Chapter 6 Homework Problems_FORMATTED

Chapter 6 Homework Problems_FORMATTED - Chapter 6 Homework...

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Chapter 6 Homework Problems E6-1 Reporting Net Sales with Credit Sales and Sales Discounts LO2 During the months of January and February, Silver Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $1,300 to S. Green and billed that amount subject to terms 2/10, n/30. 6 Sold goods to M. Munoz for $510 and billed that amount subject to terms 2/10, n/30. 14 Collected cash due from S. Green. Feb. 2 Collected cash due from M. Munoz. 28 Sold goods for $350 to R. Reynolds and billed that amount subject to terms 2/10, n/45. Required Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended February 28. Net sales E6-12 Computing Bad Debt Expense Using Aging Analysis LO4 Gary's Dairy uses the aging approach to estimate bad debt expense. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $17,000, (2) up to 120 days past due, $7,100, and (3) more than 120 days past due, $2,900. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectability is (1) 2 percent, (2) 13 percent, and (3) 36 percent, respectively. At December 31, 2011 (end of the current year), the Allowance for Doubtful Accounts balance is $600 (credit) before the end-of-period adjusting entry is made. Required What amount should be recorded as Bad Debt Expense for the current year? Bad debt expense
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E6-3 Reporting Net Sales with Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales LO2 The following transactions were selected from among those completed by Cadence Retailers in 2011: Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $6,100 (total); terms 3/10, n/30. 25
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This note was uploaded on 11/03/2011 for the course AEM 2210 at Cornell University (Engineering School).

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Chapter 6 Homework Problems_FORMATTED - Chapter 6 Homework...

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