Question: You are the manager of the Accounts Receivable Department for
You are the manager of the Accounts Receivable Department for a merchandising business. Your billing clerk sent a bill for $ 2 to a customer who had charged $ 100 in goods (including sales tax) with terms 2/10, n/30. The customer called and indicated his displeasure; he can’t understand an error like this because he paid on time. Explain to your billing clerk why Accounts Receivable is credited for $ 100 and not $ 98. How was permission given to send less than the full amount?
Answer to relevant QuestionsWhat is a physical inventory? What does the word periodic mean in the term periodic inventory?Basga Company uses the periodic inventory system. Beginning inventory amounted to $ 241,072. A physical count reveals that the latest inventory amount is $ 256,339. Record the adjusting entries using T accounts.The balances of the ledger accounts of Beldren Home Center as of December 31, the end of its fiscal year, are as follows: Cash ....................... $ 10,592Accounts Receivable ................ 43,962Merchandise ...A portion of Johnson’s Farm Supply work sheet for the year ended December 31 follows:Required 1. Determine the entries that appeared in the Adjustments columns and prepare the general journal entries for the adjustments ...What are the rules for recognizing whether an adjusting entry should be reversed?
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