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intermediate sales prob

intermediate sales problems with answers to each problem

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ايهاب حسنى
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0 views

intermediate sales prob

intermediate sales problems with answers to each problem

Uploaded by

ايهاب حسنى
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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E - B

)Sales and receivables are entered at gross selling price.


June Accounts Receivable—Pham Inc................................
Sales..........................................................................................................

June Cash............................................................................
Sales Discounts ( X )...................................................
Accounts Receivable—Pham.....................................................................

)Sales and receivables are entered at net of cash discounts.


June Accounts Receivable—Pham.........................................
Sales ( X )................................................................................

June Cash.............................................................................
Accounts Receivable—Pham.....................................................................

b)Prepare journal entry under basis , assuming that Pham did not remit payment until July .
July Cash..............................................................................
Accounts Receivable—Pham.....................................................................
Sales Discounts Forfeited................................................................................

E B
Step
Cash received ( *. ) =
+ Due from factor ( *. )=
=Net proceeds =
Step
Net proceeds=
-BV of A/R sold=( )
= Loss on sale=
Sykes
Cash
Due from factor
Loss on sale
A/R

KTT Finance
A/R
Due to Sykes
Interest Revenue
Cash
E B

a. Journal entry for Somers Company on April


Date Accounts and Explanation Debit $ Credit $
April Cash $ ,
Interest expenses ( * ) $ ,
Note payable $

b. Journal entry for collection of accounts receivables


Date Accounts and Explanation Debit $ Credit $
Cash $ ,
Accounts Receivables $ ,

c. Journal entry for repayment


Date Accounts and Explanation Debit $ Credit $
July Note payable $
Interest Expenses ( * * ) $ ,
Cash $ ,

E B
a.
Desired allowance ( * )=
beginning allowance =( )
Additional allowance =
Bad Debt Expense......................................
Allowance for Doubtful Accounts........................................ **
– = (required credit entry to bring Allowance account to credit balance)

b.
Desired allowance ( * )= Credit
beginning allowance = Debit
Additional allowance =
Bad Debt Expense......................................
Allowance for Doubtful Accounts........................................ **
+ = (required credit entry to bring Allowance account to credit balance)
E B
(a)Allowance for Doubtful Accounts..................................
Accounts Receivable........................................................................

(b)Accounts Receivable....................................................................................
Less:Allowance for Doubtful Accounts................................................... ( )
Net realizable value..........................................................................

(c)Accounts Receivable..( - )..........................................................


Less:Allowance for Doubtful Accounts.....( - ) ....................... ( )
Net realizable value..........................................................................

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