Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly notified but debited Investment in Branch account for P 8,000. At the end of the year, the HO paid and recorded a P 12,000 expense for the branch but the branch has not yet made the appropriate entry for this. At year-end, the branch transferred P 50,000 cash to HO but the HO has not yet made the necessary entry. Based on the above, the corrections needed are a. HO to credit its Investment in Branch account for P 48,000, and the Branch to debit the HO account for P 18,000. b. HO to credit its Investment in Branch account for P 60,000 and the Branch to debit the HO account for P6,000 c. HO to credit its Investment in Branch account for P 56,000 and the Branch to debit the HO account for P 6,000. d. HO to credit its Investment in Branch account for P 44,000 and the Branch to debit the HO account for P 30,000.

Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly notified but debited Investment in Branch account for P 8,000. At the end of the year, the HO paid and recorded a P 12,000 expense for the branch but the branch has not yet made the appropriate entry for this. At year-end, the branch transferred P 50,000 cash to HO but the HO has not yet made the necessary entry. Based on the above, the corrections needed are a. HO to credit its Investment in Branch account for P 48,000, and the Branch to debit the HO account for P 18,000. b. HO to credit its Investment in Branch account for P 60,000 and the Branch to debit the HO account for P6,000 c. HO to credit its Investment in Branch account for P 56,000 and the Branch to debit the HO account for P 6,000. d. HO to credit its Investment in Branch account for P 44,000 and the Branch to debit the HO account for P 30,000.

Name: Jonel Corporation operates a branch in Cebu. In October, the HO shippe
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Description: Jonel Corporation operates a branch in Cebu. In October, the HO shipped P 68,000 merchandise to this branch, which the branch credited the HO account for P 86,000. In November, the branch collected P2,000 HO accounts receivable. The HO was properly n

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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Llang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,354,500 of merchandise on credit (that had cost $983,300), terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $670,000 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,561,900 of merchandise (that had cost $1,258,400) on credit, terms n/30. f. Wrote off $33,800 of uncollectible accounts receivable. g. Received $1,195,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50 % of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized…
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,349,500 of merchandise on credit (that had cost $976,000), terms n/30. b. Wrote off $18,900 of uncollectible accounts receivable. c. Received $669,100 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.10% of accounts receivable would be uncollectible. Year 2 e. Sold $1,580,200 of merchandise (that had cost $1,267,600) on credit, terms n/30. f. Wrote off $27,900 of uncollectible accounts receivable. g. Received $1,386,100 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.10% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized…
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,345,434 of merchandise on credit (that had cost $975,000), terms n/30. b. Wrote off $18,300 of uncollectible accounts receivable. c. Received $669,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible. Year 2 e. Sold $1,525,634 of merchandise on credit (that had cost $1,250,000), terms n/30. f. Wrote off $27,800 of uncollectible accounts receivable. g. Received $1,204,600 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.5% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized…
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Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,353,500 of merchandise on credit (that had cost $979,500), terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $671,300 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,556,800 of merchandise (that had cost $1,295,500) on credit, terms n/30. f. Wrote off $26,000 of uncollectible accounts receivable. g. Received $1,394,400 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized…
Cortez Corporation uses the percentage of sales method to estimate its uncollectible accounts. Cortez has an ending balance of accounts receivable of $10,000. The allowance for doubtful accounts showed a balance of $1,000 in the beginning of the period. During the year, a total of $300 in accounts was written off as uncollectible. The company made credit sales of $100,000 in the current period. It estimates that 5% of sales will prove to be uncollectible. What is the ending balance of allowance for doubtful accounts of the company for the current period? Please don't provide answer in image format thank you
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows.Year 1 Sold $1,352,400 of merchandise on credit (that had cost $979,500), terms n/30. Wrote off $18,400 of uncollectible accounts receivable. Received $668,400 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.40% of accounts receivable would be uncollectible. Year 2 Sold $1,516,800 of merchandise (that had cost $1,299,500) on credit, terms n/30. Wrote off $34,500 of uncollectible accounts receivable. Received $1,187,600 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.40% of accounts receivable would be uncollectible Required:Prepare journal entries to record Liang’s Year 1 and Year 2 summarized transactions and its year-end…
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Check my work mode: This shows what is correct or incorrect for the work you have completed so Year 1 a. Sold $1,353,900 of merchandise on credit (that had cost $978,100), terms n/30. b. Wrote off $20,900 of uncollectible accounts receivable. c. Received $670,600 cash-in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be uncollectible. Year 2 e. Sold $1,532,900 of merchandise (that had cost $1,268,900) on credit, terms n/30. f. Wrote off $31,100 of uncollectible accounts receivable. g. Received $1,245,100 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.00% of accounts receivable would be…
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