Questions from Financial Accounting

Q: Mary Wade owns a small business that rents parking spaces to students

Mary Wade owns a small business that rents parking spaces to students at the local university. Mary’s typical rental contract requires the student to pay the year’s rent of $720 ($60 per month) in adv...

Q: Parker Electronics sells cell phones. During 2019, Parker sold 1

Parker Electronics sells cell phones. During 2019, Parker sold 1,500 units at an average of $500 per unit. Each unit cost Parker $350. At present, Parker offers no sales discounts. Parker’s controller...

Q: Smithson Products sells legal supplies to law firms. Gross sales in

Smithson Products sells legal supplies to law firms. Gross sales in 2019 were $2,750,600 (Smithson’s list price) on terms 3/10, n/30. Customers paid for $2,427,900 (Smithson’s list price) of the merch...

Q: Johnson Tires has three stores. Each store manager is paid a

Johnson Tires has three stores. Each store manager is paid a salary plus a bonus on the sales made by his or her store. On January 5, 2020, Kevin Sampson, manager of one of the stores, resigned. Kevin...

Q: Kelly’s Collectibles sells nearly half its merchandise on credit. During the

Kelly’s Collectibles sells nearly half its merchandise on credit. During the past 4 years, the following data were developed for credit sales and losses from uncollectible accounts:...

Q: Carol Simon, the manager of Handy Plumbing has provided the following

Carol Simon, the manager of Handy Plumbing has provided the following aging schedule for Handy’s accounts receivable: Carol indicates that the $125,200 of accounts receivable identif...

Q: At the beginning of the year, Lennon Electronics had an accounts

At the beginning of the year, Lennon Electronics had an accounts receivable balance of $34,800 and a balance in the allowance for doubtful accounts of $3,640 (credit). During the year, Lennon had cred...

Q: King Enterprises had 27 customers utilizing its financial planning services in 2019

King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving King’s assistance. King estimates that 2% of its $675,000 credit sale...

Q: Engle, a furniture company, made an error in recording a

Engle, a furniture company, made an error in recording a check received from a customer. Last month, Engle’s customer bought a table for $909. Upon receiving the check from the customer, Engel entered...

Q: Sloan Systems sells voice mail systems to small businesses. Sloan engaged

Sloan Systems sells voice mail systems to small businesses. Sloan engaged in the following activities involving notes receivable (round to nearest dollar): a. On October 1, 2019, Sloan sold an $8,000...