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) E any required year end adjustments 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 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 3 Calculate the accounts receivable balance that would be reported on Lamberts December 31, 2016, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price CHART OF ACCOUNTS Lambert Coporation General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 226 Return Liability 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense

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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

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.

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)*
E.	*any required year-end adjustments*
F.	*any January 1, 2017, reversing entries*
G.	*the collections received by January 15, 2017*

Prepare the journal entries to record each of the following items assuming that Lambert records accounts receivable and sales at the net 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)*
E.	*any required year-end adjustments*
F.	*any January 1, 2017, reversing entries*
G.	*the collections received by January 15, 2017*

Calculate the accounts receivable balance that would be reported on Lamberts December 31, 2016, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price.

CHART OF ACCOUNTS

Lambert Coporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
226	Return Liability
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense

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