Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 7, Problem 1PB
On June 30, Isner Inc.’s bookkeeper is preparing to close the books for the month. The
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Sun City Greenhouse had trouble collecting its account receivable from Sharma Suiza. On June 19, 2025, Sun City Greenhouse finally wrote off Suiza's $700 account receivable. On December 31, Suiza sent a $700 check to
Sun City Greenhouse.
Journalize the entries required for Sun City Greenhouse, assuming Sun City Greenhouse uses the direct write-off method.
On June 19, 2025, Sun City Greenhouse wrote off Suiza's $700 account receivable. Journalize the entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Date
Jun. 19
Accounts and Explanation
Debit
Credit
Steering Corporation reported the following selected information in its general ledger at December 31:
All sales were on account. Some accounts receivable were collected. One account was written off; there were no subsequent
recoveries. At the end of the year, uncollectible accounts were estimated to total $1,980.
Using your knowledge of receivables transactions, determine the missing amounts. (Hint: You may not be able to solve the below items
in alphabetical order. In addition, you may find it helpful to reconstruct the journal entries.)
Beg. bal.
End, bal.
(a)
U
(f)
Accounts Receivable
17,800
Allowance for Doubtful Accounts
Beg. bal.
900
Unadj. bal.
End. bal.
Sales
Bad Debts Expense
(b)
(d)
(e)
54,900
1,800
900
77,200
The total of a list of balances in Patricia Co’s receivables ledger was $643,700 on 30 September 20X9. This did not agree with the balance on Patricia Co’s receivables ledger control account. The following errors were discovered:
(i) A credit balance on an individual customer’s account of $400 was incorrectly extracted as a debit balance
(ii) An invoice for $3,553 was posted to the customer account as £3,535 (iii) The total of the sales returns day book was overcast by $600
What amount should be shown in Patricia Co’s statement of financial position for accounts receivable at 30 September 20X9?
A. $642,918 B. $642,882 C. $644,482 D. $643,418
Chapter 7 Solutions
Principles of Accounting Volume 1
Ch. 7 - So far, computer systems cannot yet ________. A....Ch. 7 - Any device used to provide the results of...Ch. 7 - Source documents ________. A. are input devices B....Ch. 7 - All of the following can provide source data...Ch. 7 - A document that asks you to return an identifying...Ch. 7 - Which of the following is false about accounting...Ch. 7 - An unhappy customer just returned $50 of the items...Ch. 7 - A customer just charged $150 of merchandise on the...Ch. 7 - A customer just charged $150 of merchandise using...Ch. 7 - The company just took a physical count of...
Ch. 7 - Your company paid rent of $1,000 for the month...Ch. 7 - On January 1, Incredible Infants sold goods to...Ch. 7 - Received a check for $72 from a customer, Mr....Ch. 7 - You returned damaged goods you had previously...Ch. 7 - Sold goods for $650 cash. Which journal would the...Ch. 7 - Sandren Co. purchased inventory on credit from...Ch. 7 - Sold goods for $650, credit terms net 30 days....Ch. 7 - You returned damaged goods to C.C. Rogers Inc. and...Ch. 7 - The sum of all the accounts in the accounts...Ch. 7 - AB Inc. purchased inventory on account from YZ...Ch. 7 - You just posted a debit to ABC Co. in the accounts...Ch. 7 - You just posted a credit to Stars Inc. in the...Ch. 7 - You just posted a debit to Cash in the general...Ch. 7 - You just posted a credit to Accounts Receivable....Ch. 7 - You just posted a credit to Sales and a debit to...Ch. 7 - An enterprise resource planning (ERP) system...Ch. 7 - Which of the following is not a way to prevent...Ch. 7 - Big data is mined ________. A. to find business...Ch. 7 - Artificial intelligence refers to ________. A....Ch. 7 - Blockchain is a technology that ________. A. is in...Ch. 7 - Which of the following is not true about...Ch. 7 - Why does a student need to understand how to use a...Ch. 7 - Provide an example of how paper-based accounting...Ch. 7 - Why are scanners better than keyboards?Ch. 7 - Why are there so many different accounting...Ch. 7 - Which area of accounting needs a computerized...Ch. 7 - The American Institute of Certified Public...Ch. 7 - Which special journals also require an entry to a...Ch. 7 - What is a schedule of accounts receivable?Ch. 7 - How often do we post the cash column in the cash...Ch. 7 - The schedule of accounts payable should equal...Ch. 7 - Which amounts do we post daily and which do we...Ch. 7 - Why are special journals used?Ch. 7 - Name the four main special journals.Ch. 7 - A journal entry that requires a debit to Accounts...Ch. 7 - The purchase of equipment for cash would be...Ch. 7 - Can a sales journal be used to record sales on...Ch. 7 - When should entries from the sales journal be...Ch. 7 - We record a sale on account that involves sales...Ch. 7 - We record purchases of inventory for cash in which...Ch. 7 - Should the purchases journal have a column that is...Ch. 7 - Forensic means suitable for use in a court of law....Ch. 7 - For each of the following, indicate if the...Ch. 7 - All of the following information pertains to...Ch. 7 - Match the special journal you would use to record...Ch. 7 - For each of the transactions, state which special...Ch. 7 - Catherines Cookies has a beginning balance in the...Ch. 7 - Record the following transactions in the sales...Ch. 7 - Record the following transactions in the cash...Ch. 7 - Maddie Inc. has the following transactions for its...Ch. 7 - For each of the following, indicate if the...Ch. 7 - The following information pertains to Crossroads...Ch. 7 - Match the special journal you would use to record...Ch. 7 - For each of the following transactions, state...Ch. 7 - Catherines Cookies has a beginning balance in the...Ch. 7 - Record the following transactions in the purchases...Ch. 7 - Record the following transactions in the cash...Ch. 7 - Piedmont Inc. has the following transactions for...Ch. 7 - On June 30, Oscar Inc.s bookkeeper is preparing to...Ch. 7 - Evie Inc. has the following transactions during...Ch. 7 - Use the journals and ledgers that follow. Total...Ch. 7 - Brown Inc. records purchases in a purchases...Ch. 7 - On June 30, Isner Inc.s bookkeeper is preparing to...Ch. 7 - Use the journals and ledgers that follows. Total...Ch. 7 - Why must the Accounts Receivable account in the...Ch. 7 - Why would a company use a subsidiary ledger for...Ch. 7 - If a customer owed your company $100 on the first...
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