On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and

Question

On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15? Option a. Option b. Option c. Option d. Eric Company has the following information: What is the amount of net revenues for Eric Company? $330,000. $230,000. $680,000. $780,000. At December 31, Gill Co. reported accounts receivable of $238,000 and an allowance for uncollectible accounts of $600 (credit). An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts be: $6,540. $7,800. $7,140. $7,740.

Explanation / Answer

19. Option C

20. Option D

Net Revenue = Total revenue - sales return and allowances -Sales Discounts=$860000 - $50000-$30000=$780000

21 Option A

Uncollected accounts should be $238000*3%=$7140

But uncollected accounts is alredy credited with $600

Therefore amount to be adjusted =$7140-$600=$6540

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