Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 9, Problem 20MC
Mark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct
A.
B.
C.
D.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Sheffield Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $55,000 with terms 4/15, n/45. On June 12, 2020, Sheffield received full payment for the June 1 sale.Prepare the required journal entries for Sheffield Co.
Restin Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $50,000 with terms 3/15, n/45. On June 12, 2020, Restin received full payment for the June 1 sale. Prepare the required journal entries for Restin Co.
Slinky Company purchased merchandise on June 10, 2021, at a price of $38,000, subject to credit terms of 3/10, n/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system.Required:1. Prepare the journal entry to record the purchase.2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2021 and July 8, 2021.
Chapter 9 Solutions
Principles of Accounting Volume 1
Ch. 9 - Which of the following is not a criterion to...Ch. 9 - Which of the following best represents the...Ch. 9 - If a customer pays with a credit card and the...Ch. 9 - A car dealership sells a car to a customer for...Ch. 9 - Tines Commerce computes bad debt based on the...Ch. 9 - Doer Company reports year-end credit sales in the...Ch. 9 - Balloons Plus computes bad debt based on the...Ch. 9 - Conner Pride reports year-end credit sales in the...Ch. 9 - Which method delays recognition of bad debt until...Ch. 9 - Which of the following estimation methods...
Ch. 9 - Which of the following best represents a positive...Ch. 9 - South Rims has an accounts receivable balance at...Ch. 9 - What information can best be elicited from a...Ch. 9 - Ancient Grains Unlimited has an accounts...Ch. 9 - Which of the following is not a way to manage...Ch. 9 - Which of the following is true about earnings...Ch. 9 - Which statement is most directly affected by a...Ch. 9 - Michelle Company reports $345,000 in credit sales...Ch. 9 - Which of the following is true of a maturity date?...Ch. 9 - Mark Industries issues a note in the amount of...Ch. 9 - A customer takes out a loan of $130,000 on January...Ch. 9 - A company collects an honored note with a maturity...Ch. 9 - Orion Rentals is unable to collect on a note worth...Ch. 9 - What is the matching principle?Ch. 9 - A beverage wholesale outlet sells beverages by the...Ch. 9 - On January 1, a flower shop contracts with...Ch. 9 - American Signs allows customers to pay with their...Ch. 9 - Which account type is used to record bad debt...Ch. 9 - Earrings Depot records bad debt using the...Ch. 9 - Racing Adventures records bad debt using the...Ch. 9 - Aron Larson is a customer of Bank Enterprises. Mr....Ch. 9 - The following accounts receivable information...Ch. 9 - What are bad debts?Ch. 9 - What are some possible negative signals when the...Ch. 9 - Berry Farms has an accounts receivable balance at...Ch. 9 - What are the two most common receivables ratios,...Ch. 9 - What is the difference between earnings management...Ch. 9 - What is an earnings management benefit from...Ch. 9 - Angelos Outlet used to report bad debt using the...Ch. 9 - What is an earnings management benefit from...Ch. 9 - What are the two methods of revenue recognition...Ch. 9 - What is the installment method?Ch. 9 - What is a possible ramification of deferred...Ch. 9 - What is the completed contract method?Ch. 9 - What is the percentage of completion method?Ch. 9 - British Imports is unable to collect on a note...Ch. 9 - Chemical Enterprises issues a note in the amount...Ch. 9 - What is the principal of a note?Ch. 9 - A customer was unable to pay the accounts...Ch. 9 - What are three differences between accounts...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Consider the following transaction: On March 6,...Ch. 9 - Window World extended credit to customer Nile...Ch. 9 - Millennium Associates records bad debt using the...Ch. 9 - Millennium Associates records bad debt using the...Ch. 9 - The following accounts receivable information...Ch. 9 - Using the following select financial statement...Ch. 9 - Using the following select financial statement...Ch. 9 - Millennial Manufacturing has net credit sales for...Ch. 9 - Mirror Mart uses the balance sheet aging method to...Ch. 9 - Aerospace Electronics reports $567,000 in credit...Ch. 9 - Dortmund Stockyard reports $896,000 in credit...Ch. 9 - Arvan Patel is a customer of Banks Hardware Store....Ch. 9 - Resin Milling issued a $390,500 note on January 1,...Ch. 9 - Mystic Magic issued a $120,250 note on January 1,...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Consider the following transaction: On February...Ch. 9 - Laminate Express extended credit to customer Amal...Ch. 9 - Olena Mirrors records bad debt using the...Ch. 9 - Olena Mirrors records bad debt using the...Ch. 9 - The following accounts receivable information...Ch. 9 - Using the following select financial statement...Ch. 9 - Using the following select financial statement...Ch. 9 - Starlight Enterprises has net credit sales for...Ch. 9 - Outpost Designs uses the balance sheet aging...Ch. 9 - Clovis Enterprises reports $845,500 in credit...Ch. 9 - Fortune Accounting reports $1,455,000 in credit...Ch. 9 - Anderson Air is a customer of Handler Cleaning...Ch. 9 - Rain T-Shirts issued a $440,600 note on January 1,...Ch. 9 - Element Surfboards issued a $210,800 note on...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Jars Plus recorded $861,430 in credit sales for...Ch. 9 - The following accounts receivable information...Ch. 9 - Funnel Direct recorded $1,345,780 in credit sales...Ch. 9 - Review the select information for Bean Superstore...Ch. 9 - The following select financial statement...Ch. 9 - Noren Company uses the balance sheet aging method...Ch. 9 - Elegant Universal uses the balance sheet aging...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Organics Plus is considering which bad debt...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Prepare journal entries for the following...Ch. 9 - Bristax Corporation recorded $1,385,660 in credit...Ch. 9 - The following accounts receivable information...Ch. 9 - Ink Records recorded $2,333,898 in credit sales...Ch. 9 - Review the select information for Liquor Plaza and...Ch. 9 - The following select financial statement...Ch. 9 - Elegant Linens uses the balance sheet aging method...Ch. 9 - Goods for Less uses the balance sheet aging method...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Record journal entries for the following...Ch. 9 - Shimmer Products is considering which bad debt...Ch. 9 - Review the new revenue recognition guidance issued...Ch. 9 - You are considering two possible companies for...Ch. 9 - You own a construction company and have recently...Ch. 9 - When a customer is delinquent on paying a notes...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Discuss the differences between the internal and external leadership roles surrounding self-managed work teams.
Principles of Management
S4–9 Identifying temporary and permanent accounts
Learning Objective 3
For accounts listed, identify whether t...
Horngren's Accounting (12th Edition)
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
Discussion Questions 1. What characteristics of the product or manufacturing process would lead a company to us...
Managerial Accounting (4th Edition)
Define cost object and give three examples.
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see ...
Principles of Accounting Volume 2
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Sheridan Co. uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $45,000 with terms 4/15, n/45. On June 12, 2020, Sheridan received full payment for the June 1 sale. Prepare the required journal entries for Sheridan Co. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.arrow_forwardEastman Corporation sells merchandise with a list price of $13,000 on February 1, 2019, with terms of 1/10, n/30. On February 10, 2019, payment was received on merchandise originally billed for $7,500, and the balance due was received on March 1, 2019. Required: 1. Prepare the journal entries to record the preceding information assuming that Eastman records accounts receivable and sales at (a) the gross price and (b) the net price. 2. Next Level What implied annual interest rate is Eastman’s customer incurring by failing to take the cash (sales) discount? (Assume a 365-day year.) 3. Next Level Which method—recording accounts receivable at the gross price or net price—is theoretically superior? Why?arrow_forwardMeteor Co. purchased merchandise on March 4, 2021, at a price of $40,000, subject to credit terms of 4/10, n/30. Meteor uses the net method for recording purchases and uses a periodic inventory system.Required:1. Prepare the journal entry to record the purchase.2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on March 11, 2021 and April 2, 2021.arrow_forward
- On December 5, 2019, Super Circuit Store sold gift certificates totalling $12,000. By December 31, 2019, all but $2,125 worth of these certificates had been redeemed for merchandise. Outstanding certificates were then redeemed by January 15, 2020. Required: 1. Prepare journal entries on Super Circuit’s books to reflect the preceding transactions. 2. How would the gift certificates be reported on Super Circuit’s balance sheet on December 31, 2019?arrow_forwardCruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Assuming that Cruise uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are…arrow_forwardOn 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600 for the goods sold. Assume that the customer took 3% discount and record the journal entry for the cash payment of the allowance in the books of seller under periodic inventory system?arrow_forward
- Swifty Industries purchased $10,600 of merchandise on February 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,600 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. (a) Assuming that Swifty uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Feb. 1 Feb. 4 Feb. 13 < Account Titles and Explanation Debit Creditarrow_forwardSong, Inc. (seller), engaged in the following transactions during January 2019: Song, Inc. DATE TRANSACTIONS 2019 Jan. 8 Received payment of $2,058 on account from Bowden Company in payment of Invoice 1885 dated December 30, 2018, less cash discount of $42. 10 Sold merchandise for $1,550 on account to Bowden Company, Invoice 1920, terms 2/10, n/30. 15 Issued Credit Memorandum 320 to Bowden Company for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1920, dated January 10. 19 Received payment from Bowden Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount. 30 Sold merchandise for $3,300 to Bowden Company, Invoice 1950; terms 2/10, n/30. Required: Journalize the transactions above in a general journal for Song, Inc. No Date General Journal Debit Credit 1 Jan 08, 2019 2 Jan 10, 2019…arrow_forwardOn June 30, 2024, the Esquire Company sold some merchandise to a customer for $68,000. In payment, Esquire agreed to accept a 9% note requiring the payment of interest and principal on March 31, 2025. The 9% rate is appropriate in this situation. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025?arrow_forward
- On June 30, 2024, the Esquire Company sold some merchandise to a customer for $56,000. In payment, Esquire agreed to accept a 8% note requiring the payment of interest and principal on March 31, 2025. The 8% rate is appropriate in this situation. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025? Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. June…arrow_forwardBramble Industries purchased $9,300 of merchandise on February 1, 2025, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,300 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. (a) Assuming that Bramble uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 6,578.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Search C SE DELL Debit Creditarrow_forwardAn invoice for $9156.86 is dated June 23, 2022 with terms 4/10, 2/20, n/60 ROG. The goods are received by the purchaser on July 5, 2022. What is the amount paid if paid in full on July 24, 2022?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY