Refer to the financial statements of Abercrombie Fitch and
Refer to the financial statements of Abercrombie & Fitch and Aeropostale that are supplied with this text.
Required:
1. Determine the amounts in the accounting equation for the year ending January 30, 2010, for each company. Does the accounting equation balance?
2. Set up a T-account for Abercrombie & Fitch’s accounts receivable account and include the beginning and ending balances Complete the T-account to reflect the sales and cash collections for the year. Assume all sales are on account.
3. Prepare the journal entry to record the following two events. For simplicity, assume the event was recorded in a single journal entry.
a. What journal entry is necessary to record Abercrombie & Fitch’s net sales for the year ending January 30, 2010? Assume that all sales were made on account.
b. What journal entry is necessary to record Abercrombie & Fitch’s cash collections from customers during the year ending January 30, 2010?
4. Where do Abercrombie & Fitch and Aeropostale report credit card receivables?
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