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Chapter+8+exercise+Answers+(Accounting+Principles+7th)

The document outlines a series of financial transactions related to accounts receivable, sales revenue, cost of goods sold, and sales returns for two customers, Brown's and Williamson, over several dates in January and February. It includes calculations for cash received, sales discounts, and interest revenue. Additionally, it details credit card receivables and associated interest revenue for a transaction in August and September.

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12 views

Chapter+8+exercise+Answers+(Accounting+Principles+7th)

The document outlines a series of financial transactions related to accounts receivable, sales revenue, cost of goods sold, and sales returns for two customers, Brown's and Williamson, over several dates in January and February. It includes calculations for cash received, sales discounts, and interest revenue. Additionally, it details credit card receivables and associated interest revenue for a transaction in August and September.

Uploaded by

j.rodriguez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Answers BAT4M Mr.

Singh

Solution 1 (15 min.)


Jan 3 Accounts Receivable—Brown’s ......................................... 4,500
Sales Revenue ......................................................... 4,500

Cost of Goods Sold ............................................................ 2,900


Merchandise Inventory.............................................. 2,900

Jan 10 Sales Returns and allowances ........................................... 1,500


Accounts Receivable—Brown’s ................................ 1,500

Merchandise Inventory....................................................... 967


Cost of Goods Sold................................................... 967

Jan 13 Cash ($4,500 – $1,500) x (0.98) ........................................ 2,940


Sales Discounts ($3,000 x.02) ........................................... 60
Accounts Receivable—Brown’s ................................ 3,000

Jan 20 Accounts Receivable—Williamson ..................................... 10,000


Sales Revenue ......................................................... 10,000

Cost of Goods Sold ............................................................ 6,400


Merchandise Inventory.............................................. 6,400

Jan 21 Sales Returns and Allowances .......................................... 750


Accounts Receivable—Williamson ............................ 750

Feb 21 Accounts Receivable—Williamson ..................................... 139


Interest Revenue ...................................................... 139
($10,000 – $750) x 18% x 1÷12

Mar 3 Cash ($10,000 – $750 + $139) .......................................... 9389


Accounts Receivable—Williamson ............................ 9389

Solution 3 (5 min.)
Aug 31 Credit Card Receivable ...................................................... 6,500
Sales ........................................................................ 6,500

Sep 30 Credit Card Receivable ...................................................... 102


Interest Revenue ($6,500 x 19% x 30/365) ............... 102

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