Question: Jordan Beauty Supply accepts Discover cards from its customers Discover
Jordan Beauty Supply accepts Discover® cards from its customers. Discover charges Jordan 3.5% of sales for its services. During the 2009–2010 fiscal year Jordan’s customers used Discover cards to purchase $65,000 worth of merchandise. How much did Jordan show as sales on the income statement for the year ended June 30, 2010? How much cash did Jordan actually receive from these sales?
Answer to relevant QuestionsOn May 1, 2011, Bob’s Music renegotiated its overdue account balance of $2,500 with Spectrum Electronics by signing a two-month promissory note at an interest rate of 5%. What is the principal amount of the note? What is ...Following are the 2010 year-end balances before adjustments:Accounts receivable (AR) ........ $ 80,000Allowance for uncollectible accounts .. $ (2,000)Net sales ............. $250,000Using the percentage of sales method, the ...The advertising firm Rog & Co. had the following information available concerning its cash account for the month of July:Balance per Rog & Co. books, July 31 ..... $24,180.55Outstanding checks ............. 5,440.29NSF check ...Energy Less, Inc., uses the allowance method for bad debts and adjusts the allowance for uncollectible accounts to a desired amount based on an aging of accounts receivable. At the beginning of 2011, the allowance account ...Like-A-Library, Inc., uses the allowance method to account for bad debts. Indicate the effect that each of the following independent transactions will have on gross accounts receivable, the allowance for uncollectible ...
Post your question