Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Trinity Corporation reported net accounts receivable on its September 30, 2007 balance sheet of $54,320 this amount is remaining of allowance for doubtful accounts of $3,810. Trinity Corporation has a September 30 year-end.

Total sales for year ended September 30, 2008 totalled $2,724,210 are given below:

Credit sales     1,224,410
Cash sales      1,499,800
Total sales     $2,724,210

Credit sales signify credit granted by Trinity Corporation. Credit terms are 2/10, net 60.

Trinity Corporation permits customers to replace items for nighty days from date of sale. For year ending September 30, 2008, customers replace items with sales price of $195,200 are given below:

Credit sales     123,400
Cash sales        73,000
Total returns    $196,400

Cash refund was given to cash customers, whereas credit customers were provided a credit to their account. Returns by credit customers were all ended earlier than payment was received.

For a year ending September 30, 2008, credit customers paid $1,036,600 in cash. Of this amount $184,000 was paid outside the discount period. Balance had allowed discount subtracted from amount still to pay (that is the amount of cash received is 98% of the amount owed).

For a year ending September 30, 2008, Trinity Corporation prepare off $24,660 of accounts receivable as uncollectible.

Sales returns and sales discounts are saved as contra-revenues.

problems:

1) Create summary journal entries associated to (1) sales returns, (2) sales, (3) collections of accounts receivable, and (4) prepare-offs of accounts receivable for year ended September 30, 2008.

2) Complete the ledger T account for asset accounts receivable, starting with account balance as at September 30, 2008. After all transactions have been placed compute the account balance as at September 30, 200.

3) Create a journal entry to verify bad debt expense for year ending September 30, 2008 given the aging of accounts receivable as at September 30, 2008 and amount expected to be uncollectible in all category:

Age category                            Amount      % uncollectible
Current accounts                       54500                0.02
1-3 months overdue                  16980                  0.1
4 months or more overdue          9000                  0.4
                                                  80480

4) Complete the ledger T account for contra asset allowance for doubtful accounts, starting with account balance as at September 30, 2007. After all transactions have been placed find out the account balance as at September 30, 2008.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99713

Have any Question? 


Related Questions in Accounting Basics

What are the effects on equitiesfinancial statement effect

What are the effects on equities? Financial Statement Effect of Equity Securities Presented below is a situation involving equity securities: An equity security, whose fair value is currently less than cost, is classifie ...

Westerville company reported the following results from

Westerville Company reported the following results from last year % 2013 operations: Sales $ 1,000,000 Variable expenses 300,000 -------------------------------------- Contribution margin 700,000 Fixed expenses 500,000 - ...

The budget director for bird house unlimited inc has

The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for November 20XX. Estimated sales for November Bird House 28,600 units at $33 per u ...

How do finance and accounting play a role in ethics and

How do finance and accounting play a role in ethics and sustainable positive social change? How might you use accounting or finance to support this role that you described above?

Forwards and options respond to each of the following

Forwards and Options Respond to each of the following questions (notice that there are main questions and sub-questions below some of the main questions - don't miss any!) 1. Suppose you enter into a long 6-month forward ...

Introductory accounting assignment question 1 - the

INTRODUCTORY ACCOUNTING ASSIGNMENT QUESTION 1 - The information given below was extracted from the books of KAISER TRADERS. REQUIRED: 1.1: Compare the Bank Statement with the Cash Receipts Journal and Cash Payments Journ ...

Question 1you are in charge of giving a trial final exam to

QUESTION 1 You are in charge of giving a trial final exam to classmates. Choose two problems from different areas of financial reporting that you studied in this course. Submit them as your initial post as early as possi ...

Question 1the following transactions occurred during july o

Question 1 The following transactions occurred during July: o Received $900 cash for services provided to a customer during July. o Received $2,200 cash investment from Barbara Hanson, the owner of the business. o Receiv ...

Problem -a firm has the following probability distribution

Problem - A firm has the following probability distribution for annual losses due to vandalism. All amounts are before any tax consideration. The firm has a tax rate of 20%. Annual Losses Probability $ 0 .75 $ 4,000 .20 ...

1 the prices of financial assets are based on the expected

1. The prices of financial assets are based on the expected value of future cash flows, discount rate, and past dividends. A. True B. False 2. By using different discount rates, the market allocates capital to companies ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen