Accounting study guide thing

accounting study guide thing
Download Document
Showing pages : 1 - 4 of 35
This preview has blurred sections. Sign up to view the full version! View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 7 QS 7-1 Credit card sales L.O. C1 Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system). (Omit the "$" sign in your response.) 1. Sold $10,000 of merchandise, that cost $7,500, on MasterCard credit cards. The net cash receipts from sales are immediately deposited in the sellers bank account. MasterCard charges a 5% fee. General Journal Debit Credit Cash Credit card expense Sales 10,000 Cost of goods sold 7,500 Merchandise inventory 7,500 2. Sold $3,000 of merchandise, that cost $1,500, on an assortment of credit cards. Net cash receipts are received 7 days later, and a 4% fee is charged. General Journal Debit Credit Day of sale Accounts receivable-Credit card cos. Credit card expense Sales 3,000 Cost of goods sold 1,500 Merchandise inventory 1,500 7 days later Cash 2,880 Accounts receivable-Credit card cos. 2,880 QS 7-2 Allowance method for bad debts L.O. P2 Milner Corp. uses the allowance method to account for uncollectibles. On October 31, it wrote off a $1,000 account of a customer, C. Schaub. On December 9, it receives a $200 payment from Schaub. 1. Prepare the journal entry for October 31. (Omit the "$" sign in your response.) Date General Journal Debit Credit Oct. 31 Allowance for doubtful accounts 1,000 Accounts receivable-C. Schaub 1,000 2. Prepare the entries for December 9; assume no additional money is expected from Schaub. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 9 Accounts receivable-C. Schaub 200 Allowance for doubtful accounts 200 9 Cash 200 Accounts receivable-C. Schaub 200 QS 7-3 Percent of accounts receivable method L.O. P2 Wecker Companys year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.5% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31 Bad debts expense 835 Allowance for doubtful accounts 835 2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $200? (Omit the "$" sign in your response.) Amount used in the year-end adjusting entry $ 1,535 QS 7-4 Percent of sales methods L.O. P2 Wecker Companys year-end unadjusted trial balance shows accounts receivable of $89,000, allowance for doubtful accounts of $500 (credit), and sales of $270,000. Uncollectibles are estimated to be 1.0% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec. 31 Bad debts expense 2,700 Allowance for doubtful accounts 2,700 Exercise 7-11 Honoring a note L.O. P3 Following are selected transactions for Eduardo Company....
View Full Document