Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Cyndi Corporation reported net accounts receivable on its September 30, 2008 balance sheet of $54,320 (this amount is net of allowance for doubtful accounts of $3,810). Cyndi Corporation has September 30 year-end.

Gross sales for year ended September 30, 2009 totalled $2,724,210 given below:

Credit sales

1,224,410

Cash sales

1,499,800

Total sales

$2,724,210

Credit sales represent credit granted by Cyndi Corporation. Credit terms are 2/10, net 60.

Cyndi Corporation permits customers to return items for 90 days from date of sale. For year ending September 30, 2009, customers returned items with sales price of $195,200 as follows:

Credit sales

123,400

Cash sales

73,000

Total returns

$196,400

Cash customers were given cash refund, whereas credit customers were given credit to their account. Returns by credit customers were all made before payment was received.

For year ending September 30, 2009, credit customers paid $1,036,600 in cash. Of this amount $184,000 was paid outside discount period. Balance had allowed discount deducted from amount owed (that is amount of cash received is 98% of amount owed).

For year ending September 30, 2009, Cyndi Corporation wrote off $24,660 of accounts receivable as uncollectible.

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

Required:

a. Make summary journal entries related to (1) sales, (2) sales returns, (3) collections of accounts receivable, and (4) prepare-offs of accounts receivable for year ended September 30, 2009.

b. Complete following ledger T account for asset accounts receivable, starting with account balance as at September 30, 2008. After all transactions have been entered find out account balance as at September 30, 2009. (Balance must be number reported in g. below)

c. Make journal entry to record bad debt expense for year ending September 30, 2009 given aging of accounts receivable as at September 30, 2009 and amount expected to be uncollectible in each 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

 

d. Complete following ledger T account for contra asset allowance for doubtful accounts, starting with account balance as at September 30, 2008. After all transactions have been entered find out account balance as at September 30, 2009.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M916958

Have any Question? 


Related Questions in Accounting Basics

1you have been hired by the cfo of strayer university to

1.You have been hired by the CFO of Strayer University to develop a plan to protect its accounting and financial systems at a reasonable cost. Suggest a high-level plan for the CFO. Provide support for your suggestion. B ...

1 a b and c are the members of all llc a limited liability

1. A, B and C are the members of All, LLC, a limited liability company that is treated as a partnership for federal income tax purposes. All, LLC is contemplating taking a loan of $90,000 from a local Maryland bank to fi ...

Valley care medical center expects projects x and y to

Valley Care Medical Center expects Projects X and Y to generate the following cash flows:   Givens (in '000s) Years                  0 1 2 3 4 5 1 Initial investment                              ($7,500)       2 Net oper ...

Assignmentcarol is a single mother who owns a wholesale

Assignment Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do he ...

Business assignmentthe comany i have choosen is upsresearch

Business Assignment The comany i have choosen is UPS. Research a company that interests you from the Fortune 500. (A list will be provided). Analyze what they do. What business are they in? What industry? How have they b ...

Intercompany debt both long term and short term arises

Intercompany debt, both long term and short term, arises frequently. In some cases, intercorporate borrowings may arise because one affiliate can borrow at a cheaper rate than others, and lending to other affiliates may ...

Accounting assignmenttransfer pricing decisionsas a manager

Accounting Assignment Transfer Pricing Decisions As a manager, you may be tasked with making recommendations as to how your organization should structure its transfer pricing. This is especially true in cases when both v ...

Assignmentair france-klm af a franco-dutch company prepares

Assignment Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF's financial statements and disclosure notes for the year ended Decemb ...

Write think about a specificissue or policy that you are

Write: Think about a specificissue or policy that you are interested in and/or that has impacted you personally. Use the assigned resources that are provided for this journal to gather information about the goals and pro ...

Accounting assignmentaccounting is the study of how

Accounting Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities in addition to preparing financial statements and recording busi ...

  • 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