Sykes Company for the year ended December 13,20143 Balances January 1,2014 Accou
ID: 2773729 • Letter: S
Question
Sykes Company for the year ended December 13,20143
Balances January 1,2014
Accounts receivable (various coustomers) $120,000
Allowance for doubtful accounts 8,000
the company sold merchandise and made collections on credit terms 2/10, n/30 (assume a unit sales price of $500 in all transactions and use the gross method to record sales revenue)
Trancaction during 2014
a. Sold merchandise for cash, 235,000
b. Sold merchandise to R. Dmith: invoice price, 11,500
c. Sold merchandise to K. Miter; invoice price, 26,500
d. Tow days after puchase date, R. Dmith returned one of the units purchased in (b) and received account credit.
e. Sold merchandise to B Sean; invoce price. 24,000
f. R. Dimth paid his account in full within the discount period.
g. Collected 98,000 cash from customer sales on credit in prior year, all within the discount periods
h. K. Miter paid the invoice in (c) within the discount period
i. Sold merchandise to R. Roy; invoce price, 19,000
j. Three days after paying the account in full, K. Miter returned seven defective units and received a cash refund
k. After the discount period, collecte 6,000 cash on an account receivable on sales in a prior year
l. Wrote off a 2013 account of 3.000 after deciding that the amount would never be collected.
Required:
Prepar Journal Entry for all the transactions above
Explanation / Answer
No Account Title & Explaination Debit Credit a Cash 235000 Sale 235000 b Accounts receivable 11500 Sales 11500 c Accounts receivable 26500 Sales 26500 d Sales Return & Allowances 500 Accounts receivable 500 e Accounts receivable 24000 Sales 24000 f Cash 10780 Discount 220 Accounts receivable 11000 g Cash 98000 Discount 2000 Accounts receivable 100000 h Cash 25970 Discount 530 Accounts receivable 26500 i Accounts receivable 19000 Sales 19000 j Sales Return & Allowances 1500 Discount 30 Cash 1470 k Cash 6000 Accounts receivable 6000 l Allowance for doubtful accounts 3000 Accounts receivable 3000
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