a. The company ordered and received 63 additional hoverboards from a factory in Japan at an invoice cost of $66,150. We purchased these on account. The journal entry to record this will: Debit: 66,150 Credit: 66,150 b. We paid $630 (cash) in shipping costs on the hoverboards described in question (a) above. The journal entry to record this will: Debit: 630 Credit: 630 c. Three of the boards received (question a) above were damaged and returned to the manufacturer. The amount we owed was reduced by $ 3,180 ( $1,050 per board plus $10 shipping) * 3 boards The journal entry to record this will: Debit: 3,180 Credit: 3,180 d. We sold 15 hoverboards at a price of $2,100 each to customers paying by credit card. The credit card fee is 2% of the sales price. The journal entry to record the sale to the customer will: Debit: 30,870 Debit: 630 31,500 e. Using the facts from the previous question (question d): We sold 15 hoverboards at a price of $2,100 each to customers paying by credit card. The credit card fee is 2% of the sales price. The journal entry to record the cost of the inventory sold this will: Debit: 15,750 Credit: 15,750 f. A customer who purchased a hoverboard on account last year entered bankruptcy. His entire account receivable of $2,000 is uncollectible and written off. The journal entry to record this will: Debit: 2,000 Credit: 2,000 g. We sold 42 hoverboards at a price of $2,100 each to customers on account. The customers have 30 days to pay. The journal entry to record the sale to the customer will: Debit: 88,200 Credit: 88,200 h. Using the same facts as question (g) above. We sold 42 hoverboards at a price of $2,100 each to customers on account. The customers have 30 days to pay. The journal entry to record the cost of the merchandise purchased by the customer will: Debit: 44,100 Credit: 44,100 i. One of the customers in (g) above returned 2 boards for a sales refund. The amount he owed was reduced by $4,200(2$2,100). The journal entry to record this will: Debit: 4,200 Credit: 4,200 j. The 2 boards returned in (i) above were checked over and found to be in good order. They were returned to the store shelf for sale to another customer. Recall they cost $1,050 each. The journal entry to record this will: Debit: 2,100 Credit: 2,100 k. Cash of $89,000 was collected on customer accounts. The journal entry to record this will: Debit: 89,000 I. We paid $70,000 to the hover board manufacturer on our account. The journal entry to record this will: Debit: 70,000 Credit: 70,000 m. After counting the hover boards on the store shelves, we found we were missing one board (probably shoplifted). The journal entry to record the inventory shrinkage will: Debit: 1,050 Credit: 1,050 Following is the t-account for the allowance for doubtful account n. After evaluating the age of our receivables, we estimate that we are probably going to be unable to collect $6,800 of the accounts receivable we have on our books at December 31. The amount of adjustment required is The journal entry to record this will: Debit: for the amount computed above Credit: for the amount
