Valix Finacc vol 1 Problem 6-13

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 6-13

June 1  Accounts receivable                                                               500,000

                     Sales                                                                                                         500,000

June 3  Cash                                                                                        340,000

             Sales discount (2% x 500,000)                                                    10,000

             Commission (5% x 500,000)                                                       25,000

             Receivable from factor (25% x 500,000)                                  125,000

                      Accounts receivable                                                                             500,000

        9   Sales return and allowances                                                    50,000

                      Sales discount (2% x 50,000)                                                                      1,000

                      Receivable from factor                                                                         49,000

 11  No entry

       15  Cash (125,000 – 49,000)                                                             76,000

                      Receivable from factor                                                                         76,000