Q1 A: Jervis accepts all major bank credit cards including those issued by North
ID: 2514403 • Letter: Q
Question
Q1 A: Jervis accepts all major bank credit cards including those issued by Northern bank (NB), which assesses a 3% charge on sales for using its card and pays Jervis immediately. On June 28, Jervis had $3,500 in NB credit card sales. What entry should Jervis make on June on June 28 to record the deposit? Q1 B: ABC company had credit sales of $50,000 during the year. Based on experience over the last years, they estimate that $1,500 of it's accounts receivable will be uncollectible. Make the journal entry required by GAAP for bad debts at year end Q1 C: On December 31s BTO sel equipment that originally cost $20,000 and has total accumulated depreciation of $15,000. The cash sales price is $6,500. Record the sale with a journal entry. 01 D: On December 1,2015, a company borrows $5,000 from the bank at 10% interest for 60 days, Make the adjusting entry needed on December 31,2015 to record interest expense.Explanation / Answer
Answer
Question No
Accounts titles & Explanations
Debit
Credit
Q1-A
Cash [$3500 x 97%]
$ 3,395.00
Credit card expenses [$3500 x 3%]
$ 105.00
Sales Revenue
$ 3,500.00
(credit card sale recorded)
Q1-B
Bad Debt Expenses
$ 1,500.00
Allowance for Bad Debt
$ 1,500.00
(Bad debt expenses recorded)
Q1-C
Cash
$ 6,500.00
Accumulated Depreciation
$ 15,000.00
Gain on Sale [$6500 - ($20000 - $15000)]
$ 1,500.00
Equipment
$ 20,000.00
(equipment sold at profit)
Q1-D
31-Dec-15
Interest expense [$5000 x 10% x 31days/365days]
$ 42.00
Interest payable
$ 42.00
(interest expenses accrued)
Question No
Accounts titles & Explanations
Debit
Credit
Q1-A
Cash [$3500 x 97%]
$ 3,395.00
Credit card expenses [$3500 x 3%]
$ 105.00
Sales Revenue
$ 3,500.00
(credit card sale recorded)
Q1-B
Bad Debt Expenses
$ 1,500.00
Allowance for Bad Debt
$ 1,500.00
(Bad debt expenses recorded)
Q1-C
Cash
$ 6,500.00
Accumulated Depreciation
$ 15,000.00
Gain on Sale [$6500 - ($20000 - $15000)]
$ 1,500.00
Equipment
$ 20,000.00
(equipment sold at profit)
Q1-D
31-Dec-15
Interest expense [$5000 x 10% x 31days/365days]
$ 42.00
Interest payable
$ 42.00
(interest expenses accrued)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.