Jenkins, Inc., which sells household appliances, begins its scal year on June 1. A partial balance sheet
Question:
Jenkins, Inc.
Partial Balance Sheet
May 31, 2009
Accounts Receivable..................................................... $35,000
Allowance for Uncollectible Accounts.......................... (3,500)
Net Realizable Value..................................................... $31,500
The following transactions took place during June 2009.
June 1 Cash sales for the day totaled $5,100.
June 4 Sold $2,000 of merchandise to another appliance retailer, JLK Company, with terms of 2/10, n/30.
June 6 Sold $300 of merchandise to Jae Lee, terms n/20.
June 8 Wrote off an uncollectible account receivable from W5 Corp. of $450.
June 12 JLK Company returned $500 of the merchandise purchased on June 4 because the merchandise was defective.
June 14 JLK Company paid Jenkins the amount due for the June 4 transaction.
June 20 Sold $950 of merchandise to Larissa Rodriguez with terms of n/20.
June 26 Received payment from Jae Lee for merchandise sold to him on June 6.
June 29 Received a check for $450 from W5 Corp. whose account balance had been written off on June 8.
Required:
(a) Prepare general journal entries for the June transactions.
(b) Calculate Jenkins’s net sales for June.
(c) Calculate Jenkins’s balance in Accounts Receivable and Allowance for Uncollectible Accounts.
(d) Prepare a partial balance sheet as of June 30, 2009.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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