Compute Net Sales for problems 1-3 1. Sold merchandise to Sam, who charged the $
ID: 2393282 • Letter: C
Question
Compute Net Sales for problems 1-3
1. Sold merchandise to Sam, who charged the $3,000 purchase on his Visa. Visa charges a 2% credit card fee
2. On July 15, sold merchandise to Marie at an invoice price of $9,000; terms 3/10, n/30. On July 23, company collected payment from Marie
3. On July 20, sold merchandise to Emily at an invoice price of $4,000; terms 3/10, n/30. On July 21, Emily returned a portion of the merchandise because it was defective, valued at 500. On August 20, company collected payment from Emily
Record bad debt expense and write off & Prepare journal entry for problems 4-6
1. On November 13 of the current year, an account receivable for $98,000 was determined uncollectable and written off
2. At year end, the appropriate bad debt expense adjustment of $20,000 was recorded
3. On 12/1, $200 payment was received for an account previously written off. (hint 4 journal entries)
Explanation / Answer
Answers
Transaction no.
Accounts title
Debit
Credit
Working
$ 1.00
Cash
$ 2,940.00
[3000 x 98%]
Card Charges
$ 60.00
[3000 x 2%]
Sales Revenue
$ 3,000.00
[3000 x 100%]
(sales made)
2 [Jul 15]
Accounts receivables
$ 9,000.00
Sales Revenue
$ 9,000.00
(merchandise sold on account)
2 [Jul 23]
Cash
$ 8,730.00
[9000 x 97%]
Sales Discount
$ 270.00
[9000 x 3%]
Accounts receivables
$ 9,000.00
(cash collected within discount term of 10 days and discount given)
3 [Jul 20]
Accounts receivables
$ 4,000.00
Sales Revenue
$ 4,000.00
(merchandise sold on account)
3 [jul 21]
Sales Return
$ 500.00
Accounts receivables
$ 500.00
( merchandise returned)
3 [Aug 20]
Cash
$ 3,500.00
Accounts receivables
$ 3,500.00
(Cash collected after discount period of 10 days and no discount awarded)
----Answer-----
Sales revenue
1st Transaction
$ 3,000.00
2 [Jul 15]
$ 9,000.00
3 [Jul 20]
$ 4,000.00
Total Sales
$ 16,000.00
Sales Discount
2 [Jul 23]
$ 270.00
Sales Return
3 [jul 21]
$ 500.00
Net Sale
$ 15,230.00
Transaction no.
Accounts title
Debit
Credit
1 [Nov 13]
Accounts receivables
$ 98,000.00
Allowance for uncollectible account
$ 98,000.00
(account written off)
2 [31 Dec]
Bad Debt Expense
$ 20,000.00
Allowance for uncollectible account
$ 20,000.00
(bad debt expense recorded)
3 [12/1]
Accounts receivables
$ 200.00
Allowance for uncollectible account
$ 200.00
(account reistated)
3 [12/1]
Cash
$ 200.00
Accounts receivables
$ 200.00
(cash collected from account that was written off)
Transaction no.
Accounts title
Debit
Credit
Working
$ 1.00
Cash
$ 2,940.00
[3000 x 98%]
Card Charges
$ 60.00
[3000 x 2%]
Sales Revenue
$ 3,000.00
[3000 x 100%]
(sales made)
2 [Jul 15]
Accounts receivables
$ 9,000.00
Sales Revenue
$ 9,000.00
(merchandise sold on account)
2 [Jul 23]
Cash
$ 8,730.00
[9000 x 97%]
Sales Discount
$ 270.00
[9000 x 3%]
Accounts receivables
$ 9,000.00
(cash collected within discount term of 10 days and discount given)
3 [Jul 20]
Accounts receivables
$ 4,000.00
Sales Revenue
$ 4,000.00
(merchandise sold on account)
3 [jul 21]
Sales Return
$ 500.00
Accounts receivables
$ 500.00
( merchandise returned)
3 [Aug 20]
Cash
$ 3,500.00
Accounts receivables
$ 3,500.00
(Cash collected after discount period of 10 days and no discount awarded)
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