Complete the following transactions for Bibi Inc. using proper journal entry procedure. Show any math (round...

Transcribed Image Text:

Complete the following transactions for Bibi Inc. using proper journal entry procedure. Show any math (round to the nearest cent), explanations not required. Assume a perpetual inventory system is used. 1. Bibi Inc. sold $1000 worth of merchandise on account on Dec 15th. The cost of sales to Bibi Inc. was $650. 2. On Dec 20th, Bibi Inc. collected $750 from Abdullahi Co. from a previous sale on account. Transactions #3-5 are related. 3. On Dec 31st, Bibi Inc. had $30,000 of credit sales uncollected. Based on past experience, Bibi Inc. estimated its bad debts expense to be $3500. After the journal entry, what would be the realizable value of the Accounts Receivable? 4. Bibi Inc. has spent 6 months trying to collect from Ahmed Nuru. On Jan25th, Bibi Inc. finally decides that his $800 is uncollectable. After the journal entry, what is the value of the Accounts Receivable and Allowance for Doubtful Accounts? 5. On Mar 10th, Ahmed Nuru paid the account in full that Bibi Inc. had previously written off. Transactions #6-9 are related. 6. On April 1st, Bibi Inc. received a $2,000, 90-day, 10% promissory note when they sold merchandise to Helena Lam (cost of sales was $1300). 7. On June 30th, Helena Lam honours (pays) the promissory note due to Bibi Inc. 8. Assume Helena Lam did not pay her promissory note dated April 1st when it matured on June 30th. 9. On Sept 1st, the restored accounts receivable from June 30th is identified as being uncollectible and written off. Transactions #10-12 are related. 10. On Dec 16th, Bibi Inc. agreed to accept $500 in cash and a $2000, 60-day, 10% promissory note from Kunga Sherpa to settle his $2,500 past-due account. 11. When Bibi Inc.'s accounting period ends on Dec 31st, they accrue the interest earned on the promissory note dated Dec 15th. 12. On Feb 13th, Kunga Sherpa honours the promissory note he wrote on Dec 15th. Complete the following transactions for Bibi Inc. using proper journal entry procedure. Show any math (round to the nearest cent), explanations not required. Assume a perpetual inventory system is used. 1. Bibi Inc. sold $1000 worth of merchandise on account on Dec 15th. The cost of sales to Bibi Inc. was $650. 2. On Dec 20th, Bibi Inc. collected $750 from Abdullahi Co. from a previous sale on account. Transactions #3-5 are related. 3. On Dec 31st, Bibi Inc. had $30,000 of credit sales uncollected. Based on past experience, Bibi Inc. estimated its bad debts expense to be $3500. After the journal entry, what would be the realizable value of the Accounts Receivable? 4. Bibi Inc. has spent 6 months trying to collect from Ahmed Nuru. On Jan25th, Bibi Inc. finally decides that his $800 is uncollectable. After the journal entry, what is the value of the Accounts Receivable and Allowance for Doubtful Accounts? 5. On Mar 10th, Ahmed Nuru paid the account in full that Bibi Inc. had previously written off. Transactions #6-9 are related. 6. On April 1st, Bibi Inc. received a $2,000, 90-day, 10% promissory note when they sold merchandise to Helena Lam (cost of sales was $1300). 7. On June 30th, Helena Lam honours (pays) the promissory note due to Bibi Inc. 8. Assume Helena Lam did not pay her promissory note dated April 1st when it matured on June 30th. 9. On Sept 1st, the restored accounts receivable from June 30th is identified as being uncollectible and written off. Transactions #10-12 are related. 10. On Dec 16th, Bibi Inc. agreed to accept $500 in cash and a $2000, 60-day, 10% promissory note from Kunga Sherpa to settle his $2,500 past-due account. 11. When Bibi Inc.'s accounting period ends on Dec 31st, they accrue the interest earned on the promissory note dated Dec 15th. 12. On Feb 13th, Kunga Sherpa honours the promissory note he wrote on Dec 15th.

Answer rating: 100% (QA)

Part 1 Helena Larn pays the promissory note on 30 th june Date Particulars Debit Credit Nov 15 Accou... View the full answer