Chapter 1 Problem 6-5
May 1 Accounts receivable – assigned 800,000
Accounts receivable 800,000
1 Cash (640,000 – 20,000) 620,000
Service charge 20,000
Note payable – bank 640,000
5 Sales return 30,000
Accounts receivable – assigned 30,000
10 Cash 490,000
Sales discount (2% x 500,000) 10,000
Accounts receivable – assigned 500,000
June 1 Note payable – bank 490,000
Interest expense (2% x 640,000) 12,800
Cash 502,800
7 Allowance for doubtful accounts 10,000
Accounts receivable – assigned 10,000
20 Cash 200,000
Accounts receivable – assigned 200,000
July 1 Note payable – bank (640,000 – 490,000) 150,000
Interest expense (2% x 150,000) 3,000
Cash 153,000
1 Accounts receivable 60,000
Accounts receivable – assigned 60,000
Accounts receivable – assigned 800,000
Less: Collections 690,000
Sales discount 10,000
Sales return 30,000
Worthless accounts 10,000 740,000
Balance 60,000
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