Question 3: (12 marks) In 2021, Matthews Company's first year of operations, the following transactions occurred:...
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. Issued 50,000 shares of common stock in exchange for $500,000 in cash. Purchased equipment at a cost of $60,000. $20,000 cash was paid and a notes payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $118,000. The company uses the perpetual inventory system. Credit sales for the month totaled $220,000. The cost...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,349,100 of merchandise (that had cost $977,100) on credit, terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $669,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.60%...
CHAPTER 8 Receivables Problem 8-6A Recording accounts receivable transactions and bad debt adjustments L01.2.2 CHECK FIGURES: d. Bad Debt Expense = $47,290; h. Bad Debt Expense = $63,155 Peru Industries began operations on January 1, 2020. The company plans to use the allowance method for uncollectible accounts. During the next two years, the company completed a number of transactions involving credit sales, accounts receivable collections, and bad debts (assume a perpetual inventory system). These trans. actions are summarized as follows:...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,347,400 of merchandise (that had cost $975,800) on credit, terms n/30. b. Wrote off $21,800 of uncollectible accounts receivable. c. Received $674,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.10%...
Current Attempt in Progress The following transactions of Jaker Ltd. occurred in the month of January: Date: 1 3 5 9 15 Borrowed $13,300 from the bank. Issued 2,300 common shares for $23,000. Purchased inventory on account totalling $26,200. Bought computer equipment costing $8,500 for $4,200 cash and the balance on account. (a) Made sales totalling $26,500, of which $9,500 were on account. (b) The cost of the products sold from inventory was $14.800. Made payments on accounts owing to...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,348,100 of merchandise (that had cost $981,200) on credit, terms n/30. Wrote off $20,700 of uncollectible accounts receivable. Received $667,100 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.60% of accounts receivable would...
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,349,500 of merchandise (that had cost $984,600) on credit, terms n/30. Wrote off $18,100 of uncollectible accounts receivable. Received $673,000 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable would...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 192,000 shares of $5-par-value common stock for $960,000 in cash. b. Borrowed $510,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $410,000 in salaries for the year. d. Purchased $650,000 of merchandise inventory on account during the year. e. Sold inventory costing $590,000 for a total of $910,000, all on credit. f....
Liang Company began operations in Year 1. During its first two
years, the company completed a number of transactions involving
sales on credit, accounts receivable collections, and bad debts.
These transactions are summarized as follows.
Year 1
Sold $1,351,600 of merchandise (that had cost $976,800) on
credit, terms n/30.
Wrote off $21,500 of uncollectible accounts receivable.
Received $669,700 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated
that 2.00% of accounts receivable would...
During the month, the following transactions occurred for Trevor’s Supply Company. The company uses the perpetual inventory method. Mar. 1 Accepted a 4-month, 6% note from a customer in settlement of $12,400 account. 3 Wrote off as uncollectible specific accounts totaling $680. 8 Purchased $17,200 of inventory on account, terms 2/10, n/30. 11 Sold $25,000 of inventory that cost $17,500, terms 1/15, n/45. 12 Paid $13,750 for employee salaries. 15 Customers returned $8,000 of inventory sold on March 11th that...