College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 10, Problem 5PB
The following transactions were completed by Nelson’s Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point.
Sept. 4 Received cash from M. Alex in payment of August 25 invoice of $275, less cash discount.
7 Issued Ck. No. 8175, $915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for $925, less cash discount of $9.25.
10 Sold merchandise in the amount of $175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is $5.
11 Issued Ck. No. 8176, $653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for $660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.’s credit terms are 1/10, n/45.
15 Received $95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied.
19 Received $1,165 cash in payment of a $1,100 note receivable and interest of $65.
22 Voided Ck. No. 8177 due to error.
26 Received and paid telephone bill, $62; Ck. No. 8178, payable to Southern Telephone Company.
30 Paid wages recorded previously for the month, $3,266, Ck. No. 8179.
Required
- 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used.
- 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.
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During the second half of December 20-1, TJ’s Specialty Shop engaged in the followingtransactions:Dec. 16 Received payment from Lucy Greene on account, $1,960.16 Sold merchandise on account to Kim Fields, $160, plus sales tax of $8.Sale No. 640.17 Returned merchandise to Evans Essentials for credit, $150.18 Issued Check No. 813 to Evans Essentials in payment of December 1balance of $1,250, less the credit received on December 17.19 Sold merchandise on account to Lucy Greene, $620, plus tax of $31.Sale No. 641.22 Received payment from John Dempsey on account, $1,560.23 Issued Check No. 814 for the purchase of supplies, $120. (Debit Supplies)24 Purchased merchandise on account from West Wholesalers, $1,200.Invoice No. 465, dated December 24, terms n/30.26 Purchased merchandise on account from Nathen Co., $800.Invoice No. 817, dated December 26, terms 2/10, n/30.27 Issued Check No. 815 to KC Power & Light (Utilities Expense) for themonth of December, $630.27 Sold merchandise on…
Jl's wholesale House uses the direct write-off method In accounting for uncollectible accounts.
Record the following transactions In general journal form.
Year 1
Oct. 10 Sold merchandise on account to Country Kitchen, $14,500.
Recelved $8,000 from Country Kitchen and wrote off the remalnder owed on the sale of October 10 as
uncollectible,
Dec. 22
If an amount box does not require an entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
1 oct 10
2.
2
3 Dec. 22
4.
4
5 Dec. 22
9.
6.
Year 2
Relnstated the account of Country Kitchen that had been written off on December 22 of the prevlous year and recelved $6,500 cash In full
settlement.
Apr. 4
If an amount box does not require an entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
1 Apr. 4
1
2
2.
3 Apr, 4
3.
The following are selected transactions of Thomas, Inc.:
5/10 Sold & shipped on account to Ryder, Inc. merchandise for $29,750, terms 3/10, n/30.
5/16 Ryder, Inc. returned merchandise billed at $6,750 on May 10.
5/19 Received a check from Ryder, Inc. for full settlement of the May 10 transaction.
Record the above transactions in general journal form as they would appear on the books of (a) Thomas, Inc. and (b) Ryder, Inc. Ryder, Inc. records purchases at invoice price. Both companies use the periodic inventory system. Omit explanations for the journal entries.
Chapter 10 Solutions
College Accounting (Book Only): A Career Approach
Ch. 10 - What do credit terms of 2/10, n/30 mean? 210 days...Ch. 10 - What is the entry to record the cash received on a...Ch. 10 - Prob. 3QYCh. 10 - Which of the following is not an advantage of the...Ch. 10 - Prob. 5QYCh. 10 - What is the normal balance for each of the...Ch. 10 - What does an X under the total of a special...Ch. 10 - Prob. 3DQCh. 10 - In a cash receipts journal, both the Accounts...Ch. 10 - If a cash payments journal is supposed to save...
Ch. 10 - Describe the posting procedure for a cash payments...Ch. 10 - Prob. 7DQCh. 10 - Prob. 8DQCh. 10 - For the following purchases of merchandise,...Ch. 10 - Describe the transactions recorded in the...Ch. 10 - Describe the transactions recorded in the...Ch. 10 - Record the following transactions in general...Ch. 10 - Prob. 5ECh. 10 - Record general journal entries to correct the...Ch. 10 - Label the blanks in the column heads as either...Ch. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Indicate the journal in which each of the...Ch. 10 - The following transactions were completed by...Ch. 10 - Preston Company sells candy wholesale, primarily...Ch. 10 - MacDonald Bookshop had the following transactions...Ch. 10 - The following transactions were completed by...Ch. 10 - The following transactions were completed by...Ch. 10 - The following transactions were completed by Yang...Ch. 10 - C. R. McIntyre Company sells candy wholesale,...Ch. 10 - Prob. 3PBCh. 10 - The following transactions were completed by Yang...Ch. 10 - The following transactions were completed by...Ch. 10 - Prob. 1ACh. 10 - You are the manager of the Accounts Receivable...Ch. 10 - Prob. 3ACh. 10 - Suppose we collected cash from a charge customer...Ch. 10 - Prob. 1CP
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