Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1/ Oswego Clay Pipe Company sold $46,800 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60.

1/ Oswego Clay Pipe Company sold $46,800 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60. Oswego uses the gross method of accounting for cash discounts.

What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?

Multiple Choice

  • Cash 48,672
    Accounts receivable 46,800
    Sales discounts forfeited 1,872
  • Cash 46,800
    Accounts receivable 44,928
    Sales discounts forfeited 1,872
  • Cash 46,800
    Accounts receivable 44,928
    Discounts receivable 1,872
  • Cash 46,800
    Accounts receivable 46,800

2/ Calistoga Produce estimates bad debt expense at 0.30% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $479,000 and $1,610 respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $319,000 and $318,000, respectively, and $1,770 in accounts receivable were written off.

Calistoga's final balance in its allowance for uncollectible accounts at December 31, 2018, is:

Multiple Choice

  • $1,447.

  • $1,682.

  • $797.

  • $702.

3/ Calistoga Produce estimates bad debt expense at 0.50% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $487,000 and $1,470, respectively, at December 31, 2017. During 2018, Calistoga's credit sales and collections were $321,000 and $317,000, respectively, and $1,820 in accounts receivable were written off.

Calistoga's accounts receivable at December 31, 2018, are:

Multiple Choice

  • $489,180.

  • $481,180.

  • $485,180.

  • $491,000.

4/ As of January 1, 2018, Farley Co. had a credit balance of $534,000 in its allowance for uncollectible accounts. Based on experience, 2% of Farley's credit sales have been uncollectible. During 2018, Farley wrote off $636,000 of accounts receivable. Credit sales for 2018 were $18,000,000. In its December 31, 2018, balance sheet, what amount should Farley report as allowance for uncollectible accounts?

Multiple Choice

  • $258,000.

  • $894,000.

  • $462,000.

  • $360,000.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: Robert L. Mathis, John H. Jackson

13th Edition

053845315X, 978-0538453158

More Books

Students also viewed these Accounting questions