Journal Entries for Sale, Return, and Remittance-Perpetual System

On October 14, the Patrick Company sold merchandise with an invoice price of $1,400 ($1,150 cost), with terms of 2/10, n/30, to the Baxter Company. On October 18, $600 of the merchandise ($550 cost) was returned because it was the wrong size. On October 24, the Patrick Company received a check for the amount due from the Baxter Company.

Required Prepare the journal entries for the Patrick Company using the perpetual inventory system.

2. Journal Entries for Purchase, Return, and Remittance-Perpetual System

On May 15, the Monique Company purchased $31,000 of merchandise from the Terrell Company, with terms of 1/10, n/30. On May 17, Monique paid $320 toSwift Trucking Company for freight on the shipment. On May 20, Monique Company returned $600 of merchandise for credit. Final payment was made to Terrell on May 24. Monique Company records purchases using the perpetual inventory system.

Required Prepare the journal entries that Monique Company should make on May 15, 17, 20 and 24.

3. Inventory Costing Methods - Periodic Method The Shiloh Company uses the periodic inventory system for its merchandise inventory. The June 1 inventory for one of the items in the merchandise inventory consisted of 60 units with a unit cost of $80. Transactions for this item duringJune were as follows:

June	5	Purchased	40	units @	$90	per unit
	13	Sold	50	units @	$130	per unit
	25	Purchased	30	units @	$92	per unit
	29	Sold	20	units @	$135	per unit

Required

a. Calculate the cost of goods sold and the ending inventory cost for the month of June using the weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar. b. Calculate the cost of goods sold and the ending inventory cost for the month of June using the first-in, first-out method. c. Calculate the cost of goods sold and the ending inventory cost for the month of June using the last-in, first-out method.

a.	Weighted Average
	Ending Inventory	Answer
	Cost of goods Sold	Answer
b.	First-in, First-out:
	Ending Inventory	Answer
	Cost of Goods Sold:	Answer
c.	Last-in, first-out:
	Ending Inventory	Answer
	Cost of Goods Sold:	Answer

4. Bank Reconciliation Components Identify the requested amount in each of the following situations:

a. Howell Company's August 31 bank reconciliation shows deposits in transit of $2,250. The general ledger Cash in Bank account shows total cash receipts during September of $87,750. The September bank statement shows total cash deposits of $87,000(and no credit memos). What amount of deposits in transit should appear in the September 30 bank reconciliation? b. Wright Corporation's March 31 bank reconciliation shows deposits in transit of $1,400. The general ledger Cash in Bank account shows total cash receipts during April of $64,600. The April bank statement shows total cash deposits of $63,100 (including $500 from the collection of a note; the note collection has not yet been recorded by Wright). What amount of deposits in transit should appear in the April 30 bank reconciliation? c. Braddock Company's October 31 bank reconciliation shows outstanding checks of $2,200. The general ledger Cash in Bank account shows total cash disbursements (all by check) during November of $69,300. The November bank statement shows $67,200 ofchecks clearing the bank. What amount of outstanding checks should appear in the November 30 bank reconciliation?

a. $Answer b. $Answer c. $Answer

5. Maturity Dates of Notes Receivable Determine the maturity date and compute the interest for each of the following notes: (Use 360 days for interest calculation. Round to the nearest dollar.)

	Date of Note	Principal	Interest Rate	Term
a.	July 10	$7,200	9%	120 days
b.	April 14	12,000	8%	150 days
c.	May 19	11,200	7.5%	150 days
d.	June 10	5,400	8%	75 days
e.	October 29	30,000	8%	105 days

	Maturity Date
	Month	Day	Interest
a.	AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary	Answer	Answer
b.	AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary	Answer	Answer
c.	AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary	Answer	Answer
d.	AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary	Answer	Answer
e.	AnswerDecemberNovemberOctoberSeptemberAugustJulyJuneMayAprilMarchFebruaryJanuary	Answer	Answer

6. Journal Entries for Credit Losses At January 1, the Griffin Company had the following accounts on its books:

Accounts Receivable	$128,000	Debit
Allowance for Doubtful Accounts	$7,000	Credit
During the year, credit sales were:	$811,000
and collections on account were:	$796,000

The following transactions, among others, occurred during the year:

Jan.11	Wrote off J. Wolf's account,	$3,000
Apr.29	Wrote off B. Avery's account,	$1,200
Nov.15	Received $1,200 from B. Avery, to pay a debt that had been written off on
	April 29, in final settlement of the account written off on April 29.
	This amount is not included in the $796,000 collections.
Dec.05	Wrote off D. Wright's account,	$2,350
Dec.31	In an adjusting entry, recorded the allowance for doubtful accounts at	1%
	of credit sales for the year.

Required

a. Prepare the journal entries to record the credit sales, the collections on account, the transactions and the adjustment.

b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts appear on the December 31 balance sheet.

a.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record sales revenue for the year.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collections on account for the year.
Jan.11	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off J. Wolf's account.
Apr.29	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write off B. Avery's account.
Nov.15	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To reinstate B. Avery's account for partial recovery.
Nov.15	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record collection from B. Avery.
Dec.05	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To write-off D. Wright's account.
Dec.31	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	AnswerAccounts ReceivableAccounts Receivable - B. AveryAccounts Receivable - D. WrightAccounts Receivable - J. WolfAllowance for Doubtful AccountsBad Debts ExpenseCashSales Revenue	Answer	Answer
	To record allowance for doubtful accounts.

b.

	AnswerAccounts ReceivableLess: Allowance for Doubtful Accounts	Answer
	AnswerAccounts ReceivableLess: Allowance for Doubtful Accounts	Answer
		Answer