The June 30, 2009 balance sheet of the Upham Company included the following information: *The company is
Question:
The June 30, 2009 balance sheet of the Upham Company included the following information:
*The company is contingently liable for discounted notes receivable of $38,000.
During the company’s fiscal year ending June 30, 2010, the following transactions occurred:
1. Sales on credit ..........................$874,600
2. Collections of accounts receivable ................... 841,000
3. Accounts receivable written off as uncollectible ............. 13,800
4. Notes receivable collected ..................... 29,000
5. Customer notes received in payment of accounts receivable ......... 72,000
6. Notes receivable discounted that were paid at maturity .......... 36,000
7. Notes receivable discounted that were defaulted, including interest of $20 and a $5 fee.
This amount is expected to be collected during the 2011 fiscal year. .... 2,025
8. Proceeds from customer notes discounted with recourse (face value, $45,000;
accrued interest, revenue $200) .................... 45,075
9. Collections on accounts previously written off .............. 500
10. Sales returns and allowances (on credit sales) .............. 2,000
11. Bad debts were estimated to be 1.5% of credit sales
Required
1. Prepare journal entries necessary for Upham to record the preceding transactions.
2. Prepare an analysis and schedule that shows the amounts of the accounts receivable, allowance for doubtful accounts, notes receivable, and notes receivable dishonored accounts that will be disclosed on Upham’s June 30, 2010 balancesheet.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones