Question

The following selected transactions were taken from the records of Simcoe Services Ltd. for the year ended October 31, 2015:
Dec. 31. Recorded a sale on account of $37,350 to ABC Electric Ltd., terms 1/10, net 30.
The cost of goods sold was $18,000.
Jan. 9. Cash is received for the amount owing from ABC Electric Ltd. The discount was taken.
Feb. 23. Wrote off account of B. Parker, $1,538.
Mar. 17. Received $10,125 as partial payment on the $13,500 account of Lance’s Appliances. Wrote off the remaining balance as uncollectible.
Jun. 30. Recorded a sale on account of $120,350 to ABC Electric Ltd., terms 1/10, net 30.
The cost of goods sold was $78,100.
Jul. 25. Cash is received for the amount owing from ABC Electric Ltd.
Oct. 31. Wrote off the following accounts as uncollectible (record as a compound journal entry); Waterton Electric, $550; Capital Systems, $1,200; Trimark Supplies, $765.
31. Prepared the adjusting entry, using the following aging schedule for its accounts receivable:
Instructions
1. Journalize the transactions, assuming Simcoe Services Ltd. uses a periodic inventory system. Record the October 31 adjusting entry, assuming the allowance account had a credit balance of $6,540 after recording the October 31 write-off of uncollectible accounts (prior entry).
2. Record the October 31 adjusting entry, assuming the allowance account had a debit balance of $1,500 after recording the October 31 write-off of uncollectible accounts.


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  • CreatedSeptember 15, 2015
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