Instructions Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2016. By December 18, 2016, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2016, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2017, all the remaining balances due had been collected. 1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the gross price: A. the sale of the merchandise B. collections received by December 18, 2016 C. collections received by December 31, 2016 D. sales returns and allowances (not estimated in the period of sale) any required year-end adjustments E. F. any January 1, 2017, reversing entries G. the collections received by January 15, 2017 2. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price: the sale of the merchandise A. B. collections received by December 18, 2016 C. collections received by December 31, 2016 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2017, reversing entries G. the collections received by January 15, 2017 CHART OF ACCOUNTS Lambert Coporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable EXPENSES 141 Inventory 500 Cost of Goods Sold 152 Prepaid Insurance 511 Insurance Expense 181 Equipment 512 Utilities Expense 198 Accumulated Depreciation 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 211 Accounts Payable 540 Interest Expense 226 Return Liability 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Revenue 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price. Addition A. the sale of the merchandise B. collections received by December 18, 2016 C. collections received by December 31, 2016 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2017, reversing entries G. the collections received by January 15, 2017 How does grading work? PAGE 8 GENERAL JOURNAL Score: 141/163 CREDIT DATE ACCOUNT TITLE POST. REF DEBIT Accounts Receivable 68,600.00 1 Sales Revenue 68,600.00 2 V Cash 45,080.00 3 Accounts Receivable 45,080.00 4 Cash 17,640.00 5 Accounts Receivable 17,640.00 6 Return Liability 1,500.00 7 Accounts Receivable 1,500.00 8 How does grading work? PAGE 8 GENERAL JOURNAL Score: 141/163 ACCOUNT TITLE DATE POST. REF DEBIT CREDIT 68,600.00 Accounts Receivable 1 Sales Revenue 68,600.00 Cash 45,080.00 Accounts Receivable 45,080.00 4 Cash 17,640.00 5 Accounts Receivable 17,640.00 Return Liability 1500.00 7 Accounts Receivable 1,500.00 Accounts Receivable 1,470.00 9 Sales Revenue 30.00 10 Accounts Receivable 4,380.00 11 Sales Revenue 90.00 12 Cash 90.00 13 27.68/32 Points: Feedback Instructions Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2016. By December 18, 2016, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2016, additional collections had been received on sales originally billed for $18,000, and sales returns and allowances of $1,500 had been granted by Lambert. By January 15, 2017, all the remaining balances due had been collected. 1. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the gross price: A. the sale of the merchandise B. collections received by December 18, 2016 C. collections received by December 31, 2016 D. sales returns and allowances (not estimated in the period of sale) any required year-end adjustments E. F. any January 1, 2017, reversing entries G. the collections received by January 15, 2017 2. Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price: the sale of the merchandise A. B. collections received by December 18, 2016 C. collections received by December 31, 2016 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2017, reversing entries G. the collections received by January 15, 2017 CHART OF ACCOUNTS Lambert Coporation General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable EXPENSES 141 Inventory 500 Cost of Goods Sold 152 Prepaid Insurance 511 Insurance Expense 181 Equipment 512 Utilities Expense 198 Accumulated Depreciation 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 211 Accounts Payable 540 Interest Expense 226 Return Liability 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Revenue 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net price. Addition A. the sale of the merchandise B. collections received by December 18, 2016 C. collections received by December 31, 2016 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2017, reversing entries G. the collections received by January 15, 2017 How does grading work? PAGE 8 GENERAL JOURNAL Score: 141/163 CREDIT DATE ACCOUNT TITLE POST. REF DEBIT Accounts Receivable 68,600.00 1 Sales Revenue 68,600.00 2 V Cash 45,080.00 3 Accounts Receivable 45,080.00 4 Cash 17,640.00 5 Accounts Receivable 17,640.00 6 Return Liability 1,500.00 7 Accounts Receivable 1,500.00 8 How does grading work? PAGE 8 GENERAL JOURNAL Score: 141/163 ACCOUNT TITLE DATE POST. REF DEBIT CREDIT 68,600.00 Accounts Receivable 1 Sales Revenue 68,600.00 Cash 45,080.00 Accounts Receivable 45,080.00 4 Cash 17,640.00 5 Accounts Receivable 17,640.00 Return Liability 1500.00 7 Accounts Receivable 1,500.00 Accounts Receivable 1,470.00 9 Sales Revenue 30.00 10 Accounts Receivable 4,380.00 11 Sales Revenue 90.00 12 Cash 90.00 13 27.68/32 Points: Feedback