December

Yes

18 Received validated deposit receipt (Doc. No. 11) from the bank for $7,931.96 for deposit made December 14.

Follow flowchart on page 21. No recording occurs at this time.

Cash receipts prelist is Doc. No. 9.

File Doc. No. 9 and Doc. No. 11 in the Temporary file tab.

Yes

18 Ordered the following inventory on account from Velocity Sporting Goods, using purchase order No. 328 (Doc. No. 16).

Units 120 80 30 75 Vendor Address:	Description Basketball pole pad Basketball bag Portable inflation pump Trainer's first aid kit 1285 Colgrove Ave., Pierre, SD 57501
Freight carrier:	Interstate Motor Freight
Freight charges:	Collect (i.e., paid by Waren Sports Supply)
Allowances:	None

Follow flowchart on page 22.

Use purchase order No. 325 (Doc. No. 16) as a guide.

Use the price list (Doc. No. 3).

No Receiving or recording occurs at this point for this transaction.

Tear document apart and file, following the flowchart guidance.

A

Yes ¹⁸ Borrowed $60,000 from First American Bank and Trust by issuing a two-year note

payable (Doc. No. 14) with a stated annual interest rate of 5%. Check No. 545 (Doc. No. 8) for $60,000 was received from the bank and deposited. Reviewed the terms and conditions of the note and signed it (Ray Kramer) as the borrower.

Restrictively endorse means to write the following on the back of the check: "For deposit only. Waren Sports Supply."

See flowchart, page 21, for recording and depositing.

Detach the bottom portion of the check and file in the Shipping/ Banking file tab.

File the note in the Shipping/Banking file tab.

19. Yes

    Received customer purchase order No. 37225 ( Doc. No. 4) in the mail from the

University of Southern Iowa (USI), approved their credit and shipped the goods. All good ordered were shipped, except only 48 shoulder pad sets were available for shipment.

Carrier & number: Allied Trucking: Carrier number 2154

Freight charges: FOB shipping point: Billed to buyer (i.e. paid by USI)

Route: Express

Truck & driver: Truck 2961XZ, John Arens Freight rate: $19.00 per 100 lbs.

Shipment: 3 cartons/goal and rim sets @ 40 lbs./carton

5 cartons/backboards @ 150 lbs./carton

7 cartons/shoulder pad sets @ 25 lbs./carton 10 cartons/football helmets @ 16 lbs./carton

See flowchart, pages 18 and 19; follow all steps carefully. You will use several documents and record an entry in the sales journal and the accounts receivable subsidiary ledger for this transaction. For guidance in preparing the bill of lading, see pages 35 - 36 of the Reference book.

20. Yes

    Received sales return request No. R8034 (Doc. No. 12) in the mail from Eastern Wisconsin University (EWU). The request was approved and the acknowledgment copy mailed to EWU.

Follow the flowchart steps on page 20.

A

No 20 Increased employee pay rates, and employees changed their federal income tax withholding amounts, both effective December 16. There were no changes in filing status or withholding allowances.

New Federal Income Tax

New Pay Rate Withholding Amt.

Ray Kramer $3,650.00 semimonthly $408.00 Jim Adams $21.80 per hour $217.00 Nancy Ford $17.50 per hour $68.00

No accounting entries are necessary, but you must update the pay rate history information in the Employee Earnings Subsidiary Ledger.

Yes

22 Received merchandise from Velocity Sporting Goods as listed on purch. order No. 328. All merchandise listed on the PO was delivered in good condition and in the quantities ordered, except that only 65 basketball pole pads (Item No. BB-019) were received. The goods were placed immediately in the inventory warehouse.

Freight carrier: Interstate Motor Freight

Freight bill: No. 26425 (Doc. No. 19), received with shipment

Remember to follow the flowchart on page 22. You can't record a purchase yet because the invoice hasn't been received.

Yes

No

22 Received check No. 28564 (Doc. No. 8) from Branch College for payment in full for charge invoice No. 730, and deposited the check.

22 Received legal notification from Benson, Rosenbrook, and Martinson, P.C., attorneys at law, that Stevenson College had filed bankruptcy and will be unable to pay any of its outstanding debts to its suppliers. Write off the account as a bad debt.

Remember that Waren Sports Supply uses the "Allowance" method rather than "Direct write-off" for accounting for bad debts.

Sales Journal - What is the credit amount to Sales (A/C #30100) for Invoice #731 for University of S. Iowa?

Bill of Lading 6890BR - What is the total freight cost calculated on the billing of lading for the December 19 credit sale to the University of Southern Iowa?

Credit Sale Invoice 731 - Who verified the information on the invoice and initialed it as proof of his/her review?

Cash Receipts Journal - What is the total credit amount to Accounts Receivable (A/C #10200) for the December 22 collection from Branch College?

Cash Receipts Journal - Which account was credited when the proceeds of the First American note were received on December 18?

Cash Receipts Journal - What is the amount of the sales discount granted to Branch College for paying within the discount period on December 22?

General Journal - What is the amount of the December 22 write-off for Stevenson College?

General Journal - Which account was debited for the December 22 write-off for Stevenson College?

Purchase Order #328 - Who approved and signed the purchase order for the December 18 order of goods from Velocity Sporting Goods?

Purchases Journal - What is the amount debited to Purchases (A/C #30500) for the December 22 purchase of inventory from Velocity Sporting Goods?