EXERCISE 3 Listed below are two independent situations involving the disposition of receivables 1. Fultz Company sells...
EXERCISE 3
Listed below are two independent situations involving the disposition of receivables
1. Fultz Company sells $300,000 of its receivables to Quick Factors, Inc. Quick Factors assesses a finance charge of 2% of the amount of receivables sold.
Instructions: Prepare the journal entry to record the sale of the receivables on Fultz Company's books.
2. A restaurant is the site for a large company party. The bill totals $3,000 and is charged by the patron on a Visa credit card.
Instructions: Assume a 3% service fee is charged by Visa. Record the entry for the transaction on the restaurant's books.
Homework Answers
| No | Account | Debit | Credit |
| 1 | Cash | 294,000 | |
| Finance charges (300,000*2%) | 6,000 | ||
| Accounts Receivable | 300,000 | ||
| 2 | Cash | 2,910 | |
| Credit card expenses (3,000*3%) | 90 | ||
| Accounts Receivable | 3,000 |
Add Answer to:
EXERCISE 3
Listed below are two independent situations involving the
disposition of receivables
1. Fultz
Company sells...
Q1- Hershey Co. uses the percentage of receivables method for recording bad debts expense. For the...
Q1- Hershey Co. uses the percentage of receivables method for recording bad debts expense. For the year, Hershey estimates that 4% of accounts receivable will become uncollectible. If the trial balance shows accounts receivable with a debit balance of $80,000 and allowance for doubtful accounts (ADA) with a debit balance of $600. What would the adjusting entry to the account - Allowance for doubtful accounts be? (Ignore the bad debt expense side of the entry Q2: Blue Co. uses the...
Exercise 8-7 Presented below are two independent situations. On March 3, Kitselman Appliances sells $763,800 of its rece...
Exercise 8-7 Presented below are two independent situations. On March 3, Kitselman Appliances sells $763,800 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances’ books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) On May 10, Fillmore Company sold merchandise for $14,800 and accepted the customer’s America Bank MasterCard....
Exercise 8-8 Presented below are two independent situations. On Apri...
Exercise 8-8
Presented below are two independent situations.
On April 2, Jennifer Elston uses her JCPenney Company credit
card to purchase merchandise from a JCPenney store for $1,000. On
May 1, Elston is billed for the $1,000 amount due. Elston pays $700
on the balance due on May 3. On June 1, Elston receives a bill for
the amount due, including interest at 1.0% per month on the unpaid
balance as of May 3. Prepare the entries on JCPenney Co.’s...
How did we answer this question? JURC 12, ZUIO. 89.7 Presented below are two independent situations....
How did we answer this question?
JURC 12, ZUIO. 89.7 Presented below are two independent situations. On March 3, Kitselman Appliances sells $650,000 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (b) on May 10, Fillmore Company sold merchandise for $3,000 and accepted the cus- tomer's America Bank MasterCard, America Bank charges a...
help me asap please On September 1, X8, Jack Company sells $400,000 of receivables to Nancy...
help me asap please
On September 1, X8, Jack Company sells $400,000 of receivables to Nancy Factors, Inc. Nancy Factors assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable for possible sales allowance and return. Instructions: A. If the accounts receivables are sold without guarantee basis, prepare the journal entry for Jack Company and Nancy Factors, Inc on September 1, X8. (6%) B. If the accounts receivables are sold with a full guarantee...
Presented below are two independent transactions. (Credit account titles are automatically indented when amount is entered....
Presented below are two independent transactions.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
a.
Tony’s Restaurant accepted a
Visa card in payment of a $200 lunch bill. The bank charges a 2%
fee. What entry should Tony’s make?
b.
Marigold Company sold its
accounts receivable of $75,000. What entry should Marigold make,
given a service charge of 1% on the amount of receivables
sold?
Account Titles and Explanation
Debit
Credit
a.
b.
ACCOUNTS RECEIVABLE—UNCOLLECTIBLE ACCOUNTS Instructions: Present the journal entries specified below; show supporting calculations. The trial balance...
ACCOUNTS RECEIVABLE—UNCOLLECTIBLE ACCOUNTS Instructions: Present the journal entries specified below; show supporting calculations. The trial balance of Sophia Company at December 31, 2014 includes the following: Debits Credits Accounts Receivable .................................................................. 100,000 Allowance for Doubtful Accounts ............................................... 500 Sales (all on credit) ..................................................................... 700,000 Sales Returns and Allowances .................................................. 30,000 (1) If Sophia uses the aging method and estimates that $6,000 of receivables will be uncollectible, prepare the adjusting entry. (2) If Sophia estimates uncollectibles at 1% of net credit sales, prepare the appropriate adjusting entry. (3) Assume...
THANK YOU FOR THE HELP!!! Exercise 7-21 Presented below is information for Jones Company. 1. 2....
THANK YOU FOR THE HELP!!!
Exercise 7-21 Presented below is information for Jones Company. 1. 2. 3. Beginning-of-the-year Accounts Receivable balance was $15,000. Net sales (all on account) for the year were $100,000. Jones does not offer cash discounts. Collections on accounts receivable during the year were $70,000. Jones is planning to factor some accounts receivable at the end of the year. Accounts totaling $25,000 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 5% of...
Exercise 7-21 Presented below is information for Ayayai Company 1. Beginning-of-the-year Accounts Receivable balance was $19,800...
Exercise 7-21 Presented below is information for Ayayai Company 1. Beginning-of-the-year Accounts Receivable balance was $19,800 2. Net sales (all on account) for the year were $109,400. Ayayai does not offer cash discounts. 3. Collections on accounts receivable during the year were $88,300 Ayayai is planning to factor some accounts receivable at the end of the year. Accounts totaling $14,100 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments...
Exercise 7-21 Presented below is information for Metlock Company. 1. Beginning-of-the-year Accounts Rece...
Exercise 7-21
Presented below is information for Metlock Company.
1.
Beginning-of-the-year Accounts Receivable balance was
$23,200.
2.
Net sales (all on account) for the year were $106,000. Metlock
does not offer cash discounts.
3.
Collections on accounts receivable during the year were
$82,500.
Metlock is planning to factor some accounts receivable at the end
of the year. Accounts totaling $12,400 will be transferred to
Credit Factors, Inc. with recourse. Credit Factors will retain 7%
of the balances for probable adjustments...
Q1- Hershey Co. uses the percentage of receivables method for recording bad debts expense. For the year, Hershey estimates that 4% of accounts receivable will become uncollectible. If the trial balance shows accounts receivable with a debit balance of $80,000 and allowance for doubtful accounts (ADA) with a debit balance of $600. What would the adjusting entry to the account - Allowance for doubtful accounts be? (Ignore the bad debt expense side of the entry Q2: Blue Co. uses the...
Exercise 8-8
Presented below are two independent situations.
On April 2, Jennifer Elston uses her JCPenney Company credit
card to purchase merchandise from a JCPenney store for $1,000. On
May 1, Elston is billed for the $1,000 amount due. Elston pays $700
on the balance due on May 3. On June 1, Elston receives a bill for
the amount due, including interest at 1.0% per month on the unpaid
balance as of May 3. Prepare the entries on JCPenney Co.’s...
How did we answer this question?
JURC 12, ZUIO. 89.7 Presented below are two independent situations. On March 3, Kitselman Appliances sells $650,000 of its receivables to Ervay Factors Inc. Ervay Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (b) on May 10, Fillmore Company sold merchandise for $3,000 and accepted the cus- tomer's America Bank MasterCard, America Bank charges a...
help me asap please
On September 1, X8, Jack Company sells $400,000 of receivables to Nancy Factors, Inc. Nancy Factors assesses a finance charge of 5% and retains an amount equal to 4% of accounts receivable for possible sales allowance and return. Instructions: A. If the accounts receivables are sold without guarantee basis, prepare the journal entry for Jack Company and Nancy Factors, Inc on September 1, X8. (6%) B. If the accounts receivables are sold with a full guarantee...
Presented below are two independent transactions.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
a.
Tony’s Restaurant accepted a
Visa card in payment of a $200 lunch bill. The bank charges a 2%
fee. What entry should Tony’s make?
b.
Marigold Company sold its
accounts receivable of $75,000. What entry should Marigold make,
given a service charge of 1% on the amount of receivables
sold?
Account Titles and Explanation
Debit
Credit
a.
b.
THANK YOU FOR THE HELP!!!
Exercise 7-21 Presented below is information for Jones Company. 1. 2. 3. Beginning-of-the-year Accounts Receivable balance was $15,000. Net sales (all on account) for the year were $100,000. Jones does not offer cash discounts. Collections on accounts receivable during the year were $70,000. Jones is planning to factor some accounts receivable at the end of the year. Accounts totaling $25,000 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 5% of...
Exercise 7-21 Presented below is information for Ayayai Company 1. Beginning-of-the-year Accounts Receivable balance was $19,800 2. Net sales (all on account) for the year were $109,400. Ayayai does not offer cash discounts. 3. Collections on accounts receivable during the year were $88,300 Ayayai is planning to factor some accounts receivable at the end of the year. Accounts totaling $14,100 will be transferred to Credit Factors, Inc. with recourse. Credit Factors will retain 6% of the balances for probable adjustments...
Exercise 7-21
Presented below is information for Metlock Company.
1.
Beginning-of-the-year Accounts Receivable balance was
$23,200.
2.
Net sales (all on account) for the year were $106,000. Metlock
does not offer cash discounts.
3.
Collections on accounts receivable during the year were
$82,500.
Metlock is planning to factor some accounts receivable at the end
of the year. Accounts totaling $12,400 will be transferred to
Credit Factors, Inc. with recourse. Credit Factors will retain 7%
of the balances for probable adjustments...
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