Answer:
Total cash collection= $257,500
Explanation:
Giving the following information:
Sales:
March= $250,000
April= $280,000
Speedster Bicycles, Inc., collects 25% of its sales on account in the month of the sale and 75% in the month following the sale.
<u>Cash collection April:</u>
Sales on account from April= 280,000*0.25= 70,000
Sales on account from March= 250,000*0.75= 187,500
Total cash collection= $257,500
Answer:
Entry is given below
Explanation:
As Givens brick company is paying off the liability of note payable and the interest amount therefore, it will be debited as it is a decrease in liability. Cash will be credited as it is our asset and its decreasing.
Entry DEBIT CREDIT
Notes payable $600,000
Interest $36,000(w)
Cash $636,000
Working
Interest = $600,000 x 8% x9/12
Interest = $36,000
Answer:
Cost of merchandise sold = $483 , Closing stock = $227
Explanation:
Perpetual inventory system includes updates done, when sale or purchase transaction happens
Opening Stock = 26 units (price 15). Value = 26 x 15 = 390
Sale = 13 units, price 15. So, sales cost value = 13 x 15 = 195
Purchase = 20 units (price 16). Value = 20 x 16 = 320
Sale = 18 units, price 16. So, sales cost value = 18 x 16 = 288
Total sales cost value, or cost of merchandise sold = 195 + 288 = 483
Closing stock = Opening stock + purchase - sales cost
= 390 + 320 - 483
= $227
Answer:
Debit Accounts Receivable, credit Allowance for Doubtful Accounts.
Explanation:
To record the collection of accounts receivable previously written off when using the allowance method, the first step is to debit Accounts Receivable, and then credit Allowance for Doubtful Accounts. This purpose of this to reverse the already written off amount.
The next step after that is to complete the entries by debiting Cash, and crediting the Accounts Receivable to record the cash collection in respect of previously written off accounts receivable.
