Plaza Savings and Loans is a local financial institution that services the town of Princess Anne. Plaza Savings and Loans uses the allowance method for its accounts receivables. Jan 1 Mar 31 Apr 30 un 29 Plaza Savings and Loans determines that it cannot collect its accounts receivable of $5,800 from Steve Jackson. Accepted a $7,500, 90 days, 10% note granting Nora James a time extension his past-due account receivable. Prepared an adjusting entry to record the accrued interest on Nora James' note. Received naymu

Plaza Savings and Loans is a local financial institution that services the town of Princess Anne. Plaza Savings and Loans uses the allowance method for its accounts receivables. Jan 1 Mar 31 Apr 30 un 29 Plaza Savings and Loans determines that it cannot collect its accounts receivable of $5,800 from Steve Jackson. Accepted a $7,500, 90 days, 10% note granting Nora James a time extension his past-due account receivable. Prepared an adjusting entry to record the accrued interest on Nora James' note. Received naymu

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
BK owns a small business in a small-town call Twapiasea in the Dormaa District call the PiGMenEnterprise. BK does not keep full set of accounts. The following records has been obtained in respected of the year ended 31st December 2019Summary of Bank AccountsGHS GHS Bal b/d 4,820.00 Sundry Expenses 1,560.00 Receipt from Trade Receivables 94,608.00 Payment to Trade Payables 76,040.00 Insurance 2,640.00 Rent 5,200.00 Equipment 4,000.00 Drawings 7,200.00 Bal c/d 2,788.00 99,428.00 99,428.00 BK made cash sales of GHS 13,336.00 and use this to pay the following;GHSWages and Salary 12,427.00Sundry Expenses 106.00Cash Purchase 803.00He took for his use GHS 260.00 worth of good. A discount of GHS 87.00 had been allowed to BK for prompt payment of trade payable.The following information was also available:1st January 2019 31st December 2019GHS GHSEquipment 8, 400.00 9,920.00Rent Accrued 400.00 ----------Trade Receivable 7,360.00 9,900.00Trade Payable 5,928.00 6,836.00Insurance Prepaid 420.00…
Record the transactions. (Journal Entries) December 1 Issued check for $200 for December rent Took out a short term loan from the bank in the amount of $1,600. Note is due in 60 days at 6% interest. 3 Issue credit memo for $20 to Ritter for merchandise returned 4 Received check for $392 (after discount) from Dunn in payment on account Issued check for $891 (net of discount) to Service Toy 7 Received check for $343 (after discount) from Ritter in payment on account 8 Harris issues credit memo to us for $18 (inventory) Sold equipment for $60. Orginal cost was $500. Accumulated depreciation at the time of sale was $450 9 Purchase merchandise on account from Larkin $1,000 11 Sold merchandise on account to Thayer $200 Issue check to purchase new equipment for $400 12 Purchase merchandise on account from Clark $ 1,300 14 Issue check for $24 for phone bill Sold merchandise on account to Gage $350 15 Cash sales from December 1 to 15 were $ 2,030…
Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12 the company receives a $500 check from Chad Thomas in settlement of Thomas's $1,500 outstanding accounts receivable. Due to Thomas's failing health he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this declaration. If an amount box does not require an entry, leave it blank. Dec. 12 - Select - - Select - - Select - - Select - - Select - - Select -
Carla Vista's cash register tape showed sales of $59,000 on June 16 for charges to customers' MasterCards. The bank charges a service fee of 3%. Prepare the entry to record MasterCard credit card sales. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Jun. 16 Debit Credit
On February 33, the billing date, Carol Ann Bluesky had a balance due of $122.39122.39 on her credit card. Her bank charges an interest rate of 1.25% per month and uses the average daily balance method. She made the transactions described in the table during the month. Feb. 88 Charge: Art supplies $21.2721.27 Feb. 1212 Payment $90.0090.00 Feb. 2323 Charge: Flowers delivered $62.5462.54 Feb. 2525 Charge: Music CD $10.9210.92 a) Find Carol Ann's average daily balance for the billing period from February 33 to March 33. Assume it is not a leap year. b) Find the finance charge to be paid on March 33. c) Find the balance due on March 33. d) Compare the result obtained to those obtained using the previous balance method. Question content area bottom Part 1 a) The average daily balance for the billing period was $enter your response here. (Round to the nearest cent as needed.)
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Brinker except all major bank credit cards, including first savings banks, which assesses a 4% charge on sales for using its card. On May 26, Brinker had $5900 in first savings Bank credit card sales. What entry should break or make on May 26 to record the deposit?
Entries for Receipt and Dishonor of Notes Receivable Journalize the following transactions in the accounts of Safari Games Co., which operates a riverboat casino. Assume 360 days in a year. If an amount box does not require an entry, leave it blank. Apr. 18. Received a $60,000, 30-day, 7% note dated April 18 from Glenn Cross on account. 30. Received a $42,000, 60-day, 8% note dated April 30 from Rhoni Melville on account. May 18. The note dated April 18 from Glenn Cross is dishonored, and the customer’s account is charged for the note, including interest. June 29. The note dated April 30 from Rhoni Melville is dishonored, and the customer’s account is charged for the note, including interest. Aug. 16. Cash is received for the amount due on the dishonored note dated April 18 plus interest for 90 days at 8% on the total amount debited to Glenn Cross on May 18. Oct. 22. Wrote off against the allowance account the amount charged to Rhoni Melville on June 29 for the…
Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2018, accounts receivabletotaled $625,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $32,000 at the beginning of 2018 and $21,000 in receivables were written off during the year as uncollectible. Also, $1,200 in cash was received in December from a customer whoseaccount previously had been written off. The company estimates bad debts by applying a percentage of 10% toaccounts receivable at the end of the year.Required:1. Prepare journal entries to record the write-off of receivables, the collection of $1,200 for previously writtenoff receivables, and the year-end adjusting entry for bad debt expense.2. How would accounts receivable be shown in the 2018 year-end balance sheet?