In June, Widgets, Inc. makes on account sales to Customs Motors of $800and receives a payment of $500 from them. How would this affect theAccounts Receivable control account?O A. The AR total would be decreased by $300.O B. The AR total would be decreased by $500.O C. The AR total would be increased by $800.O D. The AR total would be increased by $300.

Name: In June, Widgets, Inc. makes on account sales to Customs Motors of $8
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: In June, Widgets, Inc. makes on account sales to Customs Motors of $800and receives a payment of $500 from them. How would this affect theAccounts Receivable control account?O A. The AR total would be decreased by $300.O B. The AR total would be dec

Control account is a general ledger account for which subsidiary ledgers are maintained. Accounts…

Answered: yment of $500 from them. How wou ble…

Business

Accounting

yment of $500 from them. How wou ble control account? R total would be decreased by $300. R total would be decreased by $500.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter7: Accounting Information Systems

Section: Chapter Questions

Problem 5EA: Catherines Cookies has a beginning balance in the Accounts Payable control total account of $8,200....

See similar textbooks

Similar questions

Turkeyen Inc. had opening receivables of $5,000. With the hire of a new credit controller their collections for the period was $20,000. If the ending receivables balance was $4,000, what was the sales for the period?
A wants you to calculate its average days in accounts receivable for theyear. Its beginning and ending balances for Accounts Receivable were $11,500 and$17,250, including GST, respectively. The beginning and ending balances for theAllowance account were $350 and $500, respectively. All sales are on credit andamounted to $135,000, while the ending balance for Sales Returns & Allowances was$10,000. What is the average days in accounts receivable?a. 35.26.b. 41.98.c. 40.73d. 36.50.
On March 29, Jangles Corporation received a $21,800 invoice dated March 26. Cash discount terms were 4/10, n/30. On April 02, Jangles sent an $8,720 partial payment.a. What credit should Jangles receive? (Round your answer to the nearest cent.) Credit b. What is Jangles’ outstanding balance? (Round your answer to the nearest cent.) Outstanding Balance
Roswell Company purchasesinventory from Clear Pool Supplies on June 1. The sales terms on the invoice from Clear PoolSupplies are 3/10, n/30. What does this mean? What is Roswell’s potential savings, if any? Howmuch time does the company have to take advantage of these savings?
On March 19 Gunderson’s Hardware received a $20,800 invoice dated March 15. Cash discount terms were 3/10, n/30. On March 24, Gunderson sent an $8,320 partial payment. What is the outstanding amount due on this invoice? What is the outstanding on this invoice?
A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts receivable, along with an annual revenue of P800,000. Compute for the Accounts Receivable days. Did the company meet its credit terms for the customers? Why? What advise can you give to the company regarding proper accounts receivables management?
On April 30, Holden Company had an Accounts Receivable balance of $18,000. During the month of May. total credits to Accounts Receivable were $52,000 from customer payments. The May 31 Accounts Receivable balance was $13.000. What was the amount of credit sales during May? O $52,000. O $32,000. O $47,000. $57,000. O 55,000.
A company’s accounts receivable balance after posting net collections from customers is $150,000. Management has determined the following: $100,000 of the accounts that are 1 to 30 days past due are 2% uncollectible; and $50,000 of the accounts that are 31 to 60 days past due are 10% uncollectible. What is the net realizable value of the accounts receivable? $150,000 $148,000 $145,000 $143,000
1. An invoice dated June 27 for P20, 850 carried a cash discount of 5/30. If this invoice is paid on July 25, how much should be the payment?
15.18 Y Ltd keeps a receivables ledger control account as part of its accounting system. The following transactions take place in March: mvolces totalling $5,000 are raised to Customer X in March These invoices offer the customer a 5% discount if they pay within 14 days. Of these invoices, Y Ltd expects invoices amounting to $2,000 to be paid with the discount taken. (a) Customer Z pays cash of $2,850 for invoices with face values of $3,000. They took advantage of discounts totalling $150 for early payment, however Y Ltd had not expected Customer Z to take up the discounts. (b) Which of the following entries correctly record these transactions? DEBIT receivables ledger control $5,000, CREDIT sales $5,000, DEBIT cash $2,850, CREDIT receivables ledger control $2,850 A DEBIT receivables ledger control $4,900, CREDIT sales $4,900, DEBIT cash $2,850, DEBIT sales $150, CREDIT receivables ledger control $3,000 DEBIT receivables ledger control $5,000, CREDIT sales $5,000, DEBIT cash $2,850,…
a) Calculate Kopitiam Sdn Bud’s accounts receivable turnover ratio for Year 2 and Year 3. b) Calculate the number of days the average balance of receivables is outstanding before being converted into cash (turnover in days) for Year 2 and Year 3 c) What problem do you see with the company’s credit policy if the terms are net 30 days? Explain your answer.
4. On average it takes Acme Tool Company 80 days to collect on its sales receivables, and its operating cycle is 290 days. a. How long is cash typically tied up in inventories? (Show computations) b. What would be the likely effect to Acme's operating cycle if the company changes its current policy that sales upon credit must be paid within 3 months, instead requiring payment within 2 months? (No calculations needed, just describe the likely effect on Acme's operating cycle.)