ACC311 Chapter 6 Practice Quiz with Solution

ACC311 Chapter 6 Practice Quiz with Solution - Solution ACC...

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Solution ACC 311 Chapter 6 Practice QUIZ G&P sells their products to retail stores on account. Payment terms are stated at 1/10, n/30. The December 31, 2010 Accounts Receivable $1.250,000 Allowance for Doubtful Accounts 65,100 (credit balance) During 2011 , the following transactions occurred: B. Customers returned $100,000 of merchandise to G&P. Merchandise was originally purchased by using cash. C. G&P collected $3,900,000 from customers on account. Half of this amount was paid within the discount period. D. G&P determined that several accounts would not be collected and wrote off $38,000. Required: 1. Journalize the 2011 transactions (items A – E above). 2. Assume G&P uses the percentage of receivables (or aging) method to estimate uncollectible accounts. Of the total ending A/R balance at December 31, 2011, 75% of the balance is not past due, 15% is past due between 30 and 60 days and the remaining
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This note was uploaded on 04/06/2012 for the course ACC 311 taught by Professor Charrier during the Spring '08 term at University of Texas at Austin.

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ACC311 Chapter 6 Practice Quiz with Solution - Solution ACC...

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