College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Textbook Question
Chapter 16, Problem 6SEB
DIRECT WRITE-OFF METHOD Brent Mussellman, owner of Brent’s Barbells, uses the direct write-off method in accounting for uncollectible accounts. Record the following transactions in general journal form:
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This information relates to Monty Co.
1.
2.
3.
4.
5.
(a)
(b)
On April 5, purchased merchandise from Martinez Company for $45,000, on account, terms 4/10, net/30, FOB shipping
point.
On April 6, paid freight costs of $1,150 on merchandise purchased from Martinez Company.
On April 7, purchased equipment on account for $32,800.
On April 8, returned $3,900 of the April 5 merchandise to Martinez Company.
On April 15, paid the amount due to Martinez Company in full.
Assume that Monty Co. paid the balance due to Martinez Company on May 4 instead of April 15. Prepare the journal entry to
record this payment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
The debits and credits from two transactions are presented in the following customer account:
NAME
Mobility Products Inc.
ADDRESS
46 W. Main St.
Date
Item
Post. Ref.
Debit
Credit
Balance
Aug. 1
Balance
✔
540
Aug. 10
Invoice No. 59
CR24
103
437
Aug. 17
Invoice No. 64
R35
129
566
Select the choice that describes each transaction and the source of each posting.
Date
Action
Invoice No.
Posted From
Journal page
Aug. 10
fill in the blank 2
fill in the blank 4
Aug. 17
fill in the blank 6
fill in the blank 8
Gary Moss, owner of Moss Interiors, is negotiating for the purchase of Cullumber Galleries. The balance sheet of Cullumber is given in
an abbreviated form below.
Cullumber Gallaries
Balance Sheet
As of December 31, 2020
Assets
Liabilities and Stockholders' Equity
Cash
$124,000
Accounts payable
$50,900
Land
71,900
Notes payable (long-term)
301,900
Buildings (net)
201,900
Total liabilities
352,800
Equipment (net)
176,900
Common stock
Copyrights (net)
31,900
Retained earnings
253,800
Total assets
$606,600
Total liabilities and stockholders' equity
$606,600
Moss and Cullumber agree that:
1. Land is undervalued by $30,000.
2.
Equipment is overvalued by $5,000.
Cullumber agrees to sell the gallery to Moss for $350,000.
$232,900
20,900
Chapter 16 Solutions
College Accounting, Chapters 1-27
Ch. 16 - There are two methods of accounting for...Ch. 16 - The matching principle states that debits should...Ch. 16 - Using the percentage of sales method, the balance...Ch. 16 - When an account is written off under the allowance...Ch. 16 - Each time an account is written off under the...Ch. 16 - The dollar difference between Accounts Receivable...Ch. 16 - A business has an ending balance in Accounts...Ch. 16 - A business has an ending balance in Accounts...Ch. 16 - Prob. 4MCCh. 16 - Under the allowance method, when an account is...
Ch. 16 - Prob. 1CECh. 16 - Tonis Tech Shop has total credit sales for the...Ch. 16 - Fionas Pharmacy uses the direct write-off method...Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Under the allowance method, what journal entries...Ch. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - CALCULATION OF NET REALIZABLE VALUE L. R. Updike...Ch. 16 - UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES Rossins...Ch. 16 - UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF RECEIVABLES...Ch. 16 - COLLECTION OF ACCOUNTS WRITTEN OFFALLOWANCE METHOD...Ch. 16 - UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND...Ch. 16 - DIRECT WRITE-OFF METHOD Maria Rivera, owner of...Ch. 16 - COLLECTION OF ACCOUNT WRITTEN OFFDIRECT WRITE-OFF...Ch. 16 - UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Pyle...Ch. 16 - UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND...Ch. 16 - AGING ACCOUNTS RECEIVABLE An analysis of the...Ch. 16 - DIRECT WRITE-OFF METHOD Williams Hendricks...Ch. 16 - CALCULATION OF NET REALIZABLE VALUE Mary Martin...Ch. 16 - UNCOLLECTIBLE ACCOUNTS-PERCENTAGE OF SALES Nicoles...Ch. 16 - UNCOLLECTIBLE ACCOUNTS-PERCENTAGE OF RECEIVABLES...Ch. 16 - COLLECTION OF ACCOUNT WRITTEN OFFALLOWANCE METHOD...Ch. 16 - UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND...Ch. 16 - DIRECT WRITE-OFF METHOD Brent Mussellman, owner of...Ch. 16 - COLLECTION OF ACCOUNT WRITTEN OFFDIRECT WRITE-OFF...Ch. 16 - UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Lewis...Ch. 16 - UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND...Ch. 16 - AGING ACCOUNTS RECEIVABLE An analysis of the...Ch. 16 - DIRECT WRITE-OFF METHOD Lee and Chen Distributors...Ch. 16 - Sam and Robert are identical twins. They opened...Ch. 16 - Martel Co. has 320,000 in Accounts Receivable on...Ch. 16 - Prob. 2CPCh. 16 - At the end of 20-3, Martel Co. had 410,000 in...
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