On June 3, Patrick Company sold merchandise to Chester Company having a sale price of $5,200 with terms of 4/10, n/60, f.o.b. shipping point. On June 12, the Patrick company received a check for the balance due from Chester Company. Prepare journal entries on the Patrick Company books to record all the events noted above under each of the following situations. (1) (2) Sales and receivables are entered at gross selling price. Sales and receivables are entered at net of cash discounts. Answer: Please fill in the blank (1) Use Gross Method: (a) On June 3: Patrick would debit the account: type your answer... and credit the account: type your answer... (b) On June 12: Patrick would debit the Cash Account for: $ type your answer... type your answer... and credit the account: type your answer... (c) What additional account would be used in the above journal entry (b), and for what dollar amount? Additional Account used: type your answer... would be debited for the following amount: $ type your answer... (d) Prepare the journal entry, assuming that Chester Company did not remit payment until July 29. On July 29, Patrick would debit the following account: type your answer... for: $ type your answer... and credit: type your answer... for: $ for: $ type your answer...
On June 3, Patrick Company sold merchandise to Chester Company having a sale price of $5,200 with terms of 4/10, n/60, f.o.b. shipping point. On June 12, the Patrick company received a check for the balance due from Chester Company. Prepare journal entries on the Patrick Company books to record all the events noted above under each of the following situations. (1) (2) Sales and receivables are entered at gross selling price. Sales and receivables are entered at net of cash discounts. Answer: Please fill in the blank (1) Use Gross Method: (a) On June 3: Patrick would debit the account: type your answer... and credit the account: type your answer... (b) On June 12: Patrick would debit the Cash Account for: $ type your answer... type your answer... and credit the account: type your answer... (c) What additional account would be used in the above journal entry (b), and for what dollar amount? Additional Account used: type your answer... would be debited for the following amount: $ type your answer... (d) Prepare the journal entry, assuming that Chester Company did not remit payment until July 29. On July 29, Patrick would debit the following account: type your answer... for: $ type your answer... and credit: type your answer... for: $ for: $ type your answer...
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:On June 3, Patrick Company sold merchandise to Chester Company having a sale price of $5,200 with terms of 4/10, n/60, f.o.b. shipping point. On June 12, the Patrick
company received a check for the balance due from Chester Company.
Prepare journal entries on the Patrick Company books to record all the events noted above under each of the following situations.
(1)
(2)
Sales and receivables are entered at gross selling price.
Sales and receivables are entered at net of cash discounts.
Answer: Please fill in the blank
(1) Use Gross Method:
(a) On June 3: Patrick would debit the account: type your answer...
and credit the account: type your answer...
(b) On June 12: Patrick would debit the Cash Account for: $ type your answer...
type your answer...
and credit the account: type your answer...
(c) What additional account would be used in the above journal entry (b), and for what dollar amount?
Additional Account used: type your answer...
would be debited for the following amount: $ type your answer...
(d) Prepare the journal entry, assuming that Chester Company did not remit payment until July 29.
On July 29, Patrick would debit the following account: type your answer...
for: $ type your answer...
and credit: type your answer...
for: $
for: $ type your answer...
Transcribed Image Text:July 29, Patrick would debit the following account: type your answer...
(2) Use the net method
(a) On June 3, Patrick would debit the following account: type your answer...
type your answer...
type your answer...
dit: type your answer...
(b) On June 12, Patrick would debit Cash and Credit Accounts Receivable for: $ type your answer...
(c) Prepare the journal entry under, assuming that Chester Company did not remit payment until July 29.
On July 29, Patrick would debt Cash for the following amount: $ type your answer...
and credit the account: type your answer...
(d) What additional account and dollar amount would be used in the journal entry above (c)?
Additional account used: type your answer...
Tor: > type your answer...
would be credited for: $ type your answer...
for $
and credit Accounts Receivable for the following amount: $
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