On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest. Required: Prepare the necessary journal entries from February 15 through payment on September 30. For those boxes in which no entry is required, leave the box blank.
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On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest.
Required:
Prepare the necessary
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- Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $290 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record: A. the initial purchase B. the subsequent payment on April 17 If an amount box does not require an entry, leave it blank. Assume the perpetual inventory system is used. Apr. 7 Apr. 17 Accounts Payable Accounts Receivable Merchandise Inventory Sales Discounts Sales II III II IILamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Cash Accounts Payable Purchases Accounts Receivable Merchandise Inventory Sales Provide the journal entries for the following transactions assuming a perpetual inventory system using the account names above Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms Lamplight returns ten light fixtures, receiving a credit amount for the full purchase price on August 3: Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice date August 19, with no discount terms: Lamplight pays $100 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30?Review the following transactions. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 330 water bottles for their merchandise inventory, on credit, for $14 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier. Prepare any necessary journal entries for Tolbert Enterprises. If an amount box does not require an entry, leave it blank. Apr. 7 Apr. 15
- Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. You are to provide the journal entries for the following transactions assuming a perpetual inventory system. Cash Accounts Payable Purchases Accounts Receivable Merchandise Inventory Sales PLEASE NOTE: You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms DR CR Lamplight returns ten light fixtures, receiving a credit amount for the full purchase price on August 3: DR CR Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice…Accounts and Notes Payable On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10% interest. Required: Hide Prepare the necessary journal entries from February 15 through payment on September 30. If an amount box does not require an entry, leave it blank. Feb. 15 (Record purchase of inventory on credit) Mar. 31 (Record issuance of note to cover unpaid account payable) Sept. 30…Goods costing $2,200 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, a $300 credit memo is received from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period using a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
- You received an invoice dated April 20th in the amount of $14,200 with terms 5/15, 1/30, n/40, 2.8% penalty per month for late payments. The merchandise is received on May 9th. You sent in a partial payment of $7,100 on May 15th with the intention to pay the remaining balance before the credit period expired. However, you forgot about the invoice and realized your mistake on June 29th, when you submit payment in full for the invoice. What amount is the final payment?Bolton sold a customer service contract with a price of $37,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, n/30 and uses the gross method. Required: Hide Prepare the journal entry assuming the payment is made after 10 days (after the discount period). Account and Explanation Debit Credit Record collection of accounts receivableAce Company purchases $1,400 of merchandise from Zitco on December 16. Zitco accepts Ace’s $1,400, 90-day, 12% note as payment. Zitco’s accounting period ends on December 31. a. Prepare entries for Zitco on December 16 and December 31. b. Prepare Zitco’s March 16 entry if Ace dishonors the note. c. Instead of the facts in part b, prepare Zitco’s March 16 entry if Ace honors the note. d. Assume the facts in part b (Ace dishonors the note). Then, on March 31, Zitco writes off the receivable from Ace Company. Prepare that write-off entry assuming that Zitco uses the allowance method.
- Gordon's Grocers purchases bread from Buddy's Bread Company at $1.45 per loaf. Gordon's engaged in a customer service contract to purchase 20,000 loaves of Buddy's bread. Buddy offered credit at terms of 2/10, n/30 and expects Gordon to pay within the discount period. Required: Prepare the journal entry assuming the payment is made after 10 days (after the discount period). If an amount box does not require an entry, leave it blank.On May 18, Wildhorse Company sells $820 of merchandise on account with a cost of $460 to Windsor Supply. Prepare the entries for Wildhorse Company to record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit May 18 (To record the sales revenue.) IOn January 6, Concord Corporation sells merchandise on account to Harley Inc. for $11,600, terms 3/10, n/30. On January 16, Harley pays the amount due. Prepare the entries on Concord Corporation's books to record the sale and related collection. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Jan. 16 Account Titles and Explanation Debit Credit