Question
Chapter 2 Entre Company The following activities pertain to Entre Co. for the current year. Prepare the journal entry that should be made on Entre's
Chapter 2\ Entre Company\ The following activities pertain to Entre Co. for the current year. Prepare the journal entry that should be made on Entre's books for each activity.\ All sales were made on account and totaled
$650,000
. The cost of merchandise sold amounted to
$407,000
.\ Collections on accounts receivable totaled
$585,000
.\ cash 585000\ accounts relievable 585000\ Accounts receivable written off as uncollectible totaled
$9,000
under the allowance method.\ Entre collected
$50,000
as prepayment for services to be performed by Entre at a later date.\ Merchandise inventory purchased on account totaled
$420,000
. Entre Co. uses the perpetual method to account for inventory and thus debits Inventory (rather than Purchases) for purchases of merchandise.\
Inventory 420,000
\ accounts velievable\ 420000\ 6. Payments to merchandise suppliers totaled
$378,000
.\ 7. Equipment having an original cost of
$80,000
was sold for
$35,000
. The accumulated depreciation on this equipment at the date of sale was
$50,000
.
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