On dec ember 31 2012 an ac c ount rec eiv able for

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Unformatted text preview: t s ales . Required: 1a. Prepare the journal entry needed on Dec ember 31, 2012, to rec ord the appropriate bad debt ex pens e adjus tment for the y ear 2012. (Om it the "$" sign in your response.) General J ournal Bad debt ex pens e Allowanc e for doubtful ac c ounts Debit 23,800 ± 2% Credit 23,800 ± 2% 1b. On Dec ember 31, 2012, an ac c ount rec eiv able for $2,800 from a prior y ear was determined to be unc ollec tible and was written off. Prepare the journal entry needed on Dec ember 31, 2012, to rec ord the write­off of the ac c ount. (Om it the "$" sign in your response.) General J ournal Debit Credit Allowanc e for doubtful ac c ounts 2,800 ± 2% Ac c ounts rec eiv able 2,800 ± 2% 2. Complete the following tabulation, indic ating the amount and effec t (+ for inc reas e, − for dec reas e, and NE for no effec t) of eac h trans ac tion. Trans ac tion a. NE b. NE Net Sales Gros s Profit NE NE Inc ome from Operations ­23,800 NE Explanation: 1a. Bad debt ex pens e = $680,000 × 0.035 = $23,800 E6-5 Evaluating the Annual Interest Rate Implicit in a Sales Discount with Discussion of Management Choice of F inancing Strategy LO2 [The following information applies to the questions displayed below.] Clark ’s Lands c aping bills c us tomers s ubjec t to terms 3/10, n/50. Section Break E6­5 Evaluating the Annual Interest Rate Implicit in a Sales Discount with Discussion of Management Choice of Financing Strategy LO2 3. awar d: 0.14 out of 0.14 points E6-5 Part 1 Required: 1. Compute the annual interes t rate implic it in the s ales dis c ount. (Use 365 days a year. Do not round interm ediate calculations and round your final answer to 2 decim al places.) Annual interes t rate 28.22 % Worksheet E6­5 Part 1 Learning Objective: 06­02 Analyze the impact of credit card sales, sales discounts, and sales returns on the amounts reported as net sales. E6-5 Part 1 Required: 1. Compute the annual interes t rate implic it in the s ales dis c ount. (Use 365 days a year. Do not round interm ediate calculations and round your final answer to 2 decim al places.) Annual interes t ra...
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