#3 Cash Receipts Report Cash Receipts Report - March, Year 6 Cash sales Collections on credit...

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#3 Cash Receipts Report Cash Receipts Report - March, Year 6 Cash sales Collections on credit sales Total cash receipts $360.850 $314,800 $675,650 #4 Sale of A/R: You were provided with a memo that informed you that adjustments were made to the subsidiary accounts receivable ledger on 3/29/ Year 6. The key information was that A/R with a net realization value of $20,000 was transferred for $17,000 to a finance company. The finance company withheld $2,000 from the proceeds for projected future reductions. Daily sports has surrendered control of the receivables. #5: Information received from reviewing the board minutes held on March 22, Year 6. You learned that a loan of $12,500 to one of the former officers (a related party transaction), was deemed as uncollectible. #6: Information obtained from reviewing email to the intern from the sales credit manager. The company writes off A/R when the account is placed in collection. In March a total of $25,600 was placed into collection but the firm was also able to recover $14,000. The $14,000 recovered concerns one single customer who the firm has been trying to reach for a very long time. The customer promised to make a payment soon. While the account has not yet been collected, the sales credit manager believes that payment will be made and is considering this a recovery. Requirement (Yes or No answers are not sufficient- you need to provide reasons for your answers). #1: Review the entry on 3/22: A) What are the journal entries for a sales return transaction? B) Do you agree with the entry based on the information provided? [Hint: Examine the Sales Report] #2: Review the entry on 3/25 Write-off officer loan. Do you agree with this entry? [Hint: consider whether this is an A/R or a Loan] #3: Review the entry on 3/29 Assignment based on the sale of A/R. Do you agree with this entry? [Hint: Review pp.360-363 in your e-book. Pay attention to Illustration 7:16]] #4: Review the entry on 3/29 Write-off customer accounts: Do you agree with this entry? [Hint: How does a write-off affect accounts receivable? See pp.349-350 in your e-text] #5: Review the entry on 3/29 Recovery: Do you agree with this entry? [Hint: Your manager recommends being conservative here] #6: Review the entry on 3/31 March Sales: Do you agree with this entry? [Hint: examine the documents provided to verify credit sales) #7: Review the entry on 3/31 March Collections: Do you agree with this entry? [Hint: examine the documents provided to verify cash sales] #8: what is the ending balance for A/R on 3/31: Show a clear set of transaction descriptions starting with the 3/1 beginning balance all the way to the ending balance based on the information provided. #3 Cash Receipts Report Cash Receipts Report - March, Year 6 Cash sales Collections on credit sales Total cash receipts $360.850 $314,800 $675,650 #4 Sale of A/R: You were provided with a memo that informed you that adjustments were made to the subsidiary accounts receivable ledger on 3/29/ Year 6. The key information was that A/R with a net realization value of $20,000 was transferred for $17,000 to a finance company. The finance company withheld $2,000 from the proceeds for projected future reductions. Daily sports has surrendered control of the receivables. #5: Information received from reviewing the board minutes held on March 22, Year 6. You learned that a loan of $12,500 to one of the former officers (a related party transaction), was deemed as uncollectible. #6: Information obtained from reviewing email to the intern from the sales credit manager. The company writes off A/R when the account is placed in collection. In March a total of $25,600 was placed into collection but the firm was also able to recover $14,000. The $14,000 recovered concerns one single customer who the firm has been trying to reach for a very long time. The customer promised to make a payment soon. While the account has not yet been collected, the sales credit manager believes that payment will be made and is considering this a recovery. Requirement (Yes or No answers are not sufficient- you need to provide reasons for your answers). #1: Review the entry on 3/22: A) What are the journal entries for a sales return transaction? B) Do you agree with the entry based on the information provided? [Hint: Examine the Sales Report] #2: Review the entry on 3/25 Write-off officer loan. Do you agree with this entry? [Hint: consider whether this is an A/R or a Loan] #3: Review the entry on 3/29 Assignment based on the sale of A/R. Do you agree with this entry? [Hint: Review pp.360-363 in your e-book. Pay attention to Illustration 7:16]] #4: Review the entry on 3/29 Write-off customer accounts: Do you agree with this entry? [Hint: How does a write-off affect accounts receivable? See pp.349-350 in your e-text] #5: Review the entry on 3/29 Recovery: Do you agree with this entry? [Hint: Your manager recommends being conservative here] #6: Review the entry on 3/31 March Sales: Do you agree with this entry? [Hint: examine the documents provided to verify credit sales) #7: Review the entry on 3/31 March Collections: Do you agree with this entry? [Hint: examine the documents provided to verify cash sales] #8: what is the ending balance for A/R on 3/31: Show a clear set of transaction descriptions starting with the 3/1 beginning balance all the way to the ending balance based on the information provided.