Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 9, Problem 3EA
Consider the following transaction: On March 6, Fun Cards sells 540 card decks with a sales price of $7 per deck to Padma Singh. The cost to Fun Cards is $4 per deck. Prepare a
A. Payment is made using a credit, in-house account.
B. Payment is made using a MoneyPlus credit card.
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Consider the following transaction: On March 6, Fun Cards
sells 590 card decks with a sales price of $10 per deck to
Padma Singh. The cost to Fun Cards is $3 per deck.
Prepare a journal entry under each of the following
conditions. Assume MoneyPlus charges a 3% fee for each
sales transaction using its card.
А.
Payment is made using a credit, in-house
асcount.
В.
Payment is made using a MoneyPlus credit card.
If an amount box does not require an entry, leave it blank.
Round your answers to two decimal places.
88
A. Mar. 6
To record sale of card decks
Mar. 6
To record cost of sale
B. Mar. 6
To record sale of card decks, 3% credit card fee
88
Mar. 6
To record cost of sale
II II 1II I0
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 4.5% service charge for sales on its credit card. Access deducts a 3.5% service charge for sales on its card. Mayfair completes the following transactions in June.
June
4
Sold $500 of merchandise on credit (that had cost $250) to Natara Morris.
5
Sold $6,800 of merchandise (that had cost $3,400) to customers who used their Zisa cards.
6
Sold $5,616 of merchandise (that had cost $2,808) to customers who used their Access cards.
8
Sold $4,890 of merchandise (that had cost $2,445) to customers who used their Access cards.
13
Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $395 balance in McKee’s account stemmed from a credit sale in October of last year.
18
Received Morris’s check in full payment for the purchase of June 4.
Required:Prepare journal…
Consider the following transaction: On March 6, Fun Cards sells 560 card decks with a sales price of $10 per deck to Padma Singh. The cost to Fun Cards is $3 per deck
Prepare a journal entry under each of the following conditions. Assume MoneyPlus charges a 3% fee for each sales transaction using its card.
A. Payment is made using a credit, in-house account.
B. Payment is made using a MoneyPlus credit card.
If an amount box does not require an entry, leave it blank. Round your answers to two decimal places.
A. Mar. 6
Mar. 6
B. Mar. 6
Mar. 6
To record sale of card decks
To record cost of sale
To record sale of card decks, 3% credit card fee
To record cost of sale
38
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...
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