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Intermediate Accounting

6. XYZ sold goods on credit to Khalid and the company received a 180 day, 8%, OMR 10,857 note dated September 3, 2020. How much is the increase to interest income on December 31, 2020?

7. ABC Company sold goods on June 15, 2020 with a catalog price of OMR 5,857 and a trade discount of 20% and a sales discount term of 2/10, n/30. The customer paid on June 21, 2020. How much is the cash collected from the customer on this date?

10. ABC Company sold goods on July 5, 2020 with a catalog price of OMR 6,857 and a trade discount of 10% and a sales discount term of 3/10, n/30. The customer reported damaged goods on July 6,2020 and requested for a reduction in its account. The customer paid on July 11, 2020. What is the journal entry on July 11, 2020?

16. WBN Company reported Accounts Receivable balance of OMR 8,857 as of December 31, 2020. The company has a total sales of OMR 24,000 for the year 2020 of which 1/3 is on credit. The company estimated that 5% of credit sales will become uncollectible. How much is the bad debts expense to be reported on December 31, 2020?

20. HBN Company rendered service to Ahmed, a customer on account for OMR 6,857 on August 1, 2020. The company collected 80% of its account on September 1, 2020. On December 31, 2020, it was found out that the customer left Oman and that his account is proven to be uncollectible. On February 5, 2021, the company was able to recover the account of Ahmed and collected the full balance on February 10,2021. How much is the decrease to accounts receivable on February 10,2021?

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