Course Content $/$ Module $2($Chapters $2-3)/$ Practice Questions Ch$3$

Practice Questions Ch$3$

a$.$ Prepare Zimmerman Company's adjusting entries at December $31$ using the financial statement effects template.

b$.$ Prepare entries on January $10-$ of the following year using the financial statement effects template to record $(1)$ the billing of $$11,500$ in commissions $($which includes the $$7,000$ of commissions not billed at December $31)$ and $(2)$ the cash payment of the additional compensation owed for the current year. $($Hint for part $(1)$: Zimmerman Company has two receivable accounts $-$ Commissions Receivable is used for services performed, but not yet billed, and Accounts Receivable for amounts that are related to services performed and billed to the customer. Enter the amount debited to Accounts Receivable first.$)$