### Prepare the entry to record the sale

Assignment Help Finance Basics
##### Reference no: EM1364330

E1-2
The ledger of Salizer Company at the end of the current year shows Accounts Receivable 110,000 , Sales 840,000, and sales Returns and Allowances 40,000.
Instructions :
A) If Allowances for Doubtful Accounts has a credit balance of 2,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.
B) If Allowance for Doubtful Accounts has a debit balance of 500.00 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales, and (2) 6% of accounts receivable.

E1-5
Presented below are two independent situations.
A) On March 3, Lisa Ceja Appliances sells \$700,000 of its receivables to Horatio Factors Inc. Horatio Factors assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Lisa Ceja Appliances' books to record the sale of the receivables.
B) On May 10,Worthy Company sold merchandise for \$4,000 and accepted the customer's Firstar Bank Mastercard. At the end of the day, the Firstar Bank Mastercard receipts were deposited in the company's bank account. Firstar Bank charges a 4% service charge for credit card sales. Prepare the entry on Worthy Company's books to record the sale of merchandise.

#### Questions Cloud

 Find out how many stamps and how many photocopies the firms : Call P the unit price of each stamp and find out how many stamps and how many photocopies the firms purchase depending on the value of P. Break-even point and targeted profit : Since break-even focuses on making zero profit, is it of value in determining how many units must be sold to make a targeted profit? if so, what is it. I'm struggling to understand this. Examples would be great as references. Develop unix shell script to input number of hours : Develop a Unix shell script to input number of hours worked and pay rate and calculate the total pay, then the social security amount (assume 5%), then the net pay. Partnership and corporate taxation : Glen and Michael are equal partners in Trout Enterprises, a calendar year partnership. During the year, Trout Enterprises had gross income of \$400,000 and operating expenses of \$220,000. Prepare the entry to record the sale : The ledger of Salizer Company at the end of current year shows Accounts Receivable 110,000 , Sales 840,000, and sales Returns and Allowances 40,000. Illustrate what do you suppose would happen to the price : Illustrate what do you suppose would happen to the price and quantity of peanut butter as incomes fall during an economic recession. What do you think of the statement that says that cultural : What do you think of the statement that says that cultural and ideological differences will always be a barrier for globalization Determining bandwidth of the congested link : Consider a simplified TCP,S AMID algorithm where the congestion size is measured in number of segments not in bytes in additive increase the congestion window size in the long run will these two connections get the same share of the bandwidth o.. Find kinetic energy of ball at the highest point of motion : find out kinetic energy of ball at the highest point of motion.

### Write a Review

#### Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

#### A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

#### Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

#### Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

#### Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

#### What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

#### State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

#### Effect of financial leverage

The Effect of Financial Leverage and working capital management

#### Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

#### Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

#### Time value of money

Time Value of Money project