Jan. 9, 2023 Purchased computer equipment at a cost of $11,000, signing a six-month, 7% note payable for that amount. Recorded the week's sales of $68,000, three-fourths on credit and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Jan. 29, 2023 Feb. 5, 2023 Sent the last week's sales tax to the state. Jul. 9, 2023 Paid the six-month, 7% note, plus interest, at maturity. Aug. 31, 2023 Purchased merchandise inventory for $3,000, signing a six-month, 11% note payable. The company uses the perpetual inventory system. Accrued warranty expense, which is estimated at 2% of sales of $602,000. Dec. 31, 2023 Dec. 31, 2023 Accrued interest on all outstanding notes payable. Feb. 28, 2024 Paid the six-month 11% note, plus interest, at maturity.

Jan. 9, 2023 Purchased computer equipment at a cost of $11,000, signing a six-month, 7% note payable for that amount. Recorded the week's sales of $68,000, three-fourths on credit and one-fourth for cash. Sales amounts are subject to a 6% state sales tax. Ignore cost of goods sold. Jan. 29, 2023 Feb. 5, 2023 Sent the last week's sales tax to the state. Jul. 9, 2023 Paid the six-month, 7% note, plus interest, at maturity. Aug. 31, 2023 Purchased merchandise inventory for $3,000, signing a six-month, 11% note payable. The company uses the perpetual inventory system. Accrued warranty expense, which is estimated at 2% of sales of $602,000. Dec. 31, 2023 Dec. 31, 2023 Accrued interest on all outstanding notes payable. Feb. 28, 2024 Paid the six-month 11% note, plus interest, at maturity.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

B Company offered a cash rebate of P20 on each P150 package of ballpen sold during the current year. Historically, 10% of customers’ mail in the rebate form. During the year 600,000 packages of ballpen are sold, and 25,000 P20 rebates are mailed to customers. What amount of rebate expense should be reported for the current year? a. 1,500,000 b. 500,000 c. 600,000 d. 1,200,000
Problem 9. At December 31, 2021, Cactus Co. had 10,000 gift certificates outstanding which had been sold to customers during 2021 for P100 each. Cactus operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 10,000 outstanding gift certificates should be deferred at December 31, 2021?
G V Required information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals # 3 54,645 E D During January 2021, the following transactions occur: January purchase date. 2 Sold gift cards totaling $10,000. The cards are redeemable for merchandise within one year of the January 6 Purchase additional inventory on account, $157,000. The cost of the units sold is $78,800. January 15 Firework sales for the first half of the month total $145,000. All of these sales are on account. C $ 4 R LL JUL 10 www. 8 I ( 9 ( J K A O 0 |6 L P
2021 Oct 31 Sold goods to Basic Foods, receiving a $31,000, three-month, 6% note. (You do not need to make the cost of goods sold journal entry for this transaction.) Dec 31 Made an adjusting entry to accrue interest on the Basic Foods note. 2022 Jan 31 Collected the Basic Foods note. Nov 11 Loaned $14,600 cash to Strathroy Provisions, receiving a 90-day, 9.25% note. Dec 31 Accrued the interest on the Strathroy Provisions note. Requirement 2. Show what Bueno Foods will report on its comparative classified balance sheet at December 31, 2022, and December 31, 2021, for Notes Receivable and Interest Receivable. (Only report the related transactions given. Ignore the cash balance as the transactions provided are only selected transactions.)
Current Attempt in Progress Pharoah Pet Supply Company billed its customers a total of $777,000 for the month of November. The total includes a 5% state sales tax. (a) Determine the proper amount of revenue to report for the month. Total sales revenue $ eTextbook and Media
2021 Oct 31 Sold goods to Basic Foods, receiving a $31,000, three-month, 6% note. (You do not need to make the cost of goods sold journal entry for this transaction.) Dec 31 Made an adjusting entry to accrue interest on the Basic Foods note. 2022 Jan 31 Collected the Basic Foods note. Nov 11 Loaned $14,600 cash to Strathroy Provisions, receiving a 90-day, 9.25% note. Dec 31 Accrued the interest on the Strathroy Provisions note. Dec 31: Made an adjusting entry to accrue interest on the Basic Foods note. (Round your final calculation to the nearest whole dollar.) PrintDone
Lacoste Inc. receives a 90 day 6% note receivable from a client for the repair of 5 sets of computers for P25.000 October 31. How much is the interest income to be recognized on December 31? (Use 360 days in a year)
Sales Tax Cobb Baseball Bats sold 45 bats for $50 each, plus an additional state sales tax of 6%. The customer paid cash. Required: Prepare the journal entry to record the sale.
Cash Rebates On January 1, 2020, Fro-Yo Inc. began offering customers a cash rebate of 5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Eased on historical experience, the company estimates that 20% of the labels will be redeemed. During 2020, the company sold 5,000,000 frozen yogurt containers at 1 per container. From these sales, 800,000 labels were redeemed in 2020, 150,000 labels were redeemed in 2021, and the remaining labels were never redeemed. Required: 1. Prepare the journal entries related to the sale of frozen yogurt and the cash rebate offer for 2020 and 2021. 2. Next Level Assume that 300,000 labels were redeemed in 2021. Prepare the journal entries related to the cash rebate offer for 2021.
5. Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year- end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. At the end of 2023, accounts receivable was RM582,000 and the allowance account had a credit balance of RM46,000. Accounts receivable activity for 2024 was as follows: Beginning balance Credit sales Collections Write-offs Ending balance The company's controller prepared the following aging summary of year-end accounts receivable: Summary Amount RM 390,000 93,000 53,000 140,000 RM 676,000 Age Group 0-60 days RM 582,000 2,660,000 (2,523,000) (43,000) RM 676,000 61-90 days 91-120 days Over 120 days Total Percent Uncollectible 3% 13 23 34 Required: 1. Prepare a…
Dec 31 Accrued interest revenue for the year. Accrue interest revenue on all of the notes in one entry. (Use a 365-day year for interest computations. Round intermediary calculations and your final answer to the nearest whole dollar.) Oct 1 Loaned $14,000 cash to Blake Shyne on a one-year, 5% note. Dec 6 Performed service for Putt Masters, receiving a 90-day, 10% note for $9,000. 16 Received a $2,000, six-month, 10% note on account from Wader Company. 31 Accrued interest revenue for the year. Journal Entry Date Accounts Debit Credit Dec 31
Uniform Supply accepted a $7,200, 90-day, 7% note from Tracy Janitorial on October 17. What entry should Uniform Supply make on January 15 of the next year when the note is paid? (Assume reversing entries are not made.). (Use 360 days a year.) A) Debit Cash $7,326; credit Interest Revenue $21; credit Interest Receivable $105; credit Notes Receivable $7,200. B) Debit Cash $7,326; credit Interest Revenue $105; credit Interest Receivable $21; credit Notes Receivable $7,200. C) Debit Notes Receivable $7,200; debit Interest Receivable $126; credit Sales $7,326. D) Debit Cash $7,326; credit Notes Receivable $7,326. E) Debit Cash $7,326; credit Interest Revenue $126; credit Notes Receivable $7,200.