Question 1 Question 3 Prepare journal entries for bad debt expense for the following two situation: a-) At December 31, the balance in Account Receivables was $80,000 (DR) and the balance in Allowance Doubtful Account was $500 (CR). Prepare the required journal entry assuming the estimates of uncollectible is made by taking 10% of gross account receivables. b-) At December 31, the balance in account Receivables was $80,000 (DR) and the balance in Allowance for Doubtful Account was $500 (DR). Prepare the required journal entry assuming the estimate of uncollectible is made by taking 10% off gross account receivables On November 8, Riley Company sold to Luc Company merchandise having a sales price of $7,000 with terms of 1/10, 1/30, F.O.B. shipping point. An invoice totaling $120, terms n/30, was received by Luc on November 10 from Indigo Transport Service for the freight cost. On November 13, Riley received a check for the balance due from the Luc Company Question 2 Question 2 8 pts INSTRUCTIONS: See the record of transactions for the month of May is shown below. Assuming that perpetual inventory records are kept in dollars, determine/complete the following: A) Prepare journal entries on the Riley Company's books to record all the events noted above under each of the following bases. 1) Sales and receivables are entered at gross selling price 2) Sales and receivables are entered at net of cash discounts. B) Prepare the journal entry under basis 2. assuming Luc Company did not remit payment until 12/1. 1) What is the value, in dollars, of the ending inventory? 2) What is the total amount of cost of goods sold, in dollars, for the month of May? 3) Prepare the complete journal entry to record the sale of goods on 5/12. UNIT COST OR SELLING PRICE DATE ITEM UNITS 5/1 Balance 400 Sale 300 $4,20 $7.00 $4.30 Purchase 800 5/3 5/8 5/12 5/25 Sale 600 $7.50 Purchase 1,200 $4.50 Question 1 Question 3 Prepare journal entries for bad debt expense for the following two situation: a-) At December 31, the balance in Account Receivables was $80,000 (DR) and the balance in Allowance Doubtful Account was $500 (CR). Prepare the required journal entry assuming the estimates of uncollectible is made by taking 10% of gross account receivables. b-) At December 31, the balance in account Receivables was $80,000 (DR) and the balance in Allowance for Doubtful Account was $500 (DR). Prepare the required journal entry assuming the estimate of uncollectible is made by taking 10% off gross account receivables On November 8, Riley Company sold to Luc Company merchandise having a sales price of $7,000 with terms of 1/10, 1/30, F.O.B. shipping point. An invoice totaling $120, terms n/30, was received by Luc on November 10 from Indigo Transport Service for the freight cost. On November 13, Riley received a check for the balance due from the Luc Company Question 2 Question 2 8 pts INSTRUCTIONS: See the record of transactions for the month of May is shown below. Assuming that perpetual inventory records are kept in dollars, determine/complete the following: A) Prepare journal entries on the Riley Company's books to record all the events noted above under each of the following bases. 1) Sales and receivables are entered at gross selling price 2) Sales and receivables are entered at net of cash discounts. B) Prepare the journal entry under basis 2. assuming Luc Company did not remit payment until 12/1. 1) What is the value, in dollars, of the ending inventory? 2) What is the total amount of cost of goods sold, in dollars, for the month of May? 3) Prepare the complete journal entry to record the sale of goods on 5/12. UNIT COST OR SELLING PRICE DATE ITEM UNITS 5/1 Balance 400 Sale 300 $4,20 $7.00 $4.30 Purchase 800 5/3 5/8 5/12 5/25 Sale 600 $7.50 Purchase 1,200 $4.50
