Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, 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, 2020, all the remaining balances due had been collected. Required: 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, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 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, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 3. Calculate the accounts receivable balance that would be reported on Lambert's December 31, 2019, 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 REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 198 Accumulated Depreciation 512 Utilities Expense 521 Salaries Expense LIABILITIES 532 Bad Debt Expense 211 Accounts Payable 540 Interest Expense 541 Depreciation Expense 226 Return Liability 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 gross price. A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 PAGE 8 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Calculate the accounts receivable balance that would be reported on Lambert's December 31, 2019, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price. (a) The Accounts Receivable balance that would be reported on Lambert's December 31, 2019, balance sheet if accounts receivable and sales were recorded at the gross price would be (b) The Accounts Receivable balance that would be reported on Lambert's December 31, 2019, balance sheet if accounts receivable and sales were recorded at the net price would be Lambert Corporation sells merchandise at a list price of $70,000 with accompanying terms of 2/10, n/30 on December 8, 2019. By December 18, 2019, Lambert had collected from customers for merchandise originally billed at $46,000. By December 31, 2019, 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, 2020, all the remaining balances due had been collected. Required: 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, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 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, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 3. Calculate the accounts receivable balance that would be reported on Lambert's December 31, 2019, 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 REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 198 Accumulated Depreciation 512 Utilities Expense 521 Salaries Expense LIABILITIES 532 Bad Debt Expense 211 Accounts Payable 540 Interest Expense 541 Depreciation Expense 226 Return Liability 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 gross price. A. the sale of the merchandise B. collections received by December 18, 2019 C. collections received by December 31, 2019 D. sales returns and allowances (not estimated in the period of sale) E. any required year-end adjustments F. any January 1, 2020, reversing entries G. the collections received by January 15, 2020 PAGE 8 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Calculate the accounts receivable balance that would be reported on Lambert's December 31, 2019, balance sheet if accounts receivable and sales were recorded at (a) the gross price and (b) the net price. (a) The Accounts Receivable balance that would be reported on Lambert's December 31, 2019, balance sheet if accounts receivable and sales were recorded at the gross price would be (b) The Accounts Receivable balance that would be reported on Lambert's December 31, 2019, balance sheet if accounts receivable and sales were recorded at the net price would be