You are the manager of the Accounts Receivable Department for a merchandising business. Your billing clerk sent a bill for $2 to a customer who had charged $100 in goods (including sales tax) with terms 2/10, n/30. The customer called and indicated his displeasure. He can’t understand an error like this because he paid on time. Explain to your billing clerk why Accounts Receivable is credited for $100 and not $98. How was permission given to send less than the full amount?
> A task requires the completion of four activities. A teacher would like to know if differences in the sequence of the four activities results in different task completion times. The teacher selects three students and demonstrates the activities in random
> There are four McBurger restaurants in the Columbus, Georgia, area. The numbers of burgers sold at the respective restaurants for each of the last 6 weeks are shown below. At the .05 significance level, is there a difference in the mean number sold among
> To prevent spam from entering your email inbox, you use a filter. You are interested in knowing if the number of spam emails differs by day of the week. The number of spam emails by day of week is counted and recorded. Minitab is used to perform the data
> The Quick Change Oil Company has a number of outlets in the metropolitan Seattle area. The daily number of oil changes at the Oak Street outlet in the past 20 days are: The data are to be organized into a frequency distribution. a. How many classes wou
> Three assembly lines are used to produce a certain component for an airliner. To examine the production rate, a random sample of six hourly periods is chosen for each assembly line and the number of components produced during these periods for each line
> A study of the effect of television commercials on 12-year-old children measured their attention span, in seconds. The commercials were for clothes, food, and toys. At the .05 significance level, is there a difference in the mean attention span of the ch
> Jacob Lee is a frequent traveler between Los Angeles and San Diego. For the past month, he wrote down the flight times in minutes on three different airlines. The results are: a. Use the .05 significance level and the six-step hypothesis-testing proces
> Random samples of five were selected from each of three populations. The sum of squares total was 100. The sum of squares due to the treatments was 40. a. Set up the null hypothesis and the alternate hypothesis. b. What is the decision rule? Use the .05
> One variable that Google uses to rank pages on the Internet is page speed, the time it takes for a web page to load into your browser. A source for women’s clothing is redesigning their page to improve the images that show its products and to reduce its
> A large company is organized into three functional areas: manufacturing, marketing, and research and development. The employees claim that the company pays women less than men for similar jobs. The company randomly selected four males and four females in
> Consider the following partially completed two-way ANOVA table. Suppose there are four levels of Factor A and three levels of Factor B. The number of replications per cell is 5. Complete the table and test to determine if there is a significant differenc
> There are three hospitals in the Tulsa, Oklahoma, area. The following data show the number of outpatient surgeries performed on Monday, Tuesday, Wednesday, Thursday, and Friday at each hospital last week. At the .05 significance level, can we conclude th
> The following data was collected for a two-factor ANOVA with three treatments and three blocks. Conduct a test of hypothesis to determine whether the block or the treatment means differ. Using the .05 significance level: (a) State the null and alternat
> A stock analyst wants to determine whether there is a difference in the mean return on equity for three types of stock: utility, retail, and banking stocks. The following output is obtained: a. Using the .05 level of significance, is there a difference
> Refer to the previous exercise. Instead of 49, suppose that 64 Americans were surveyed about their weekly expenditures on coffee. Assume the sample mean remained the same. a. What is the 95% confidence interval estimate of μ? b. Explain why this confiden
> The following sample of observations were randomly selected. Determine the correlation coefficient and interpret the relationship between x and y. X 3 3 4 4 6 y 13 15 7 12 13 11 9
> Label the blanks in the column heads as either Debit or Credit. CASH RECEIPTS JOURNAL Page Sales Discounts Accounts Receivable Other Accounts Post. Ref. Account Cash Sales Date Credited
> Label the blanks in the column heads as either Debit or Credit. CASH PAYMENTS JOURNAL Page Other Accounts Accounts Payable Purchases Discounts Cash Account Debited Ck. Post. Date No. Ref.
> Describe the transaction recorded. Credit Card Cash Sales Tax Payable Sales Еxpense 593.60 44.80 560.00 11.20
> An electronics business purchased speakers for resale. The total of the invoice is $2,580, and it is subject to trade discounts of 15 percent, 10 percent, and 5 percent. Compute the amount the dealer will pay for the speakers.
> Moon Company is considering eliminating its Drapery Department. Management does not believe the indirect expenses and the level of operations in the other departments will be affected if the Drapery Department closes. Information from Moonâ€&#
> Use the information presented in Problem C-1 to solve this problem. In Problem C-1 Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the begi
> Use the information presented in Problem C-1 to solve this problem. In Problem C-1 Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the begi
> Post the following entry to the general ledger and subsidiary ledger. GENERAL JOURNAL Page 52 Post. Date Description Ref. Debit Credit 20-- August 16 Sales Returns and Allowances 286 42 Accounts Receivable, F. E. Dixon 2 8 6 42 Issued credit memo no
> Use the information in Problem A-1 to solve this problem. Assume the delivery van is expected to have a useful life of 100,000 miles (Year 1, 40,000 miles; Year 2, 30,000 miles; Year 3, 20,000 miles; Year 4, 10,000 miles). In Problem A-1 A delivery van
> A delivery van was bought for $18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be $2,000. Required Prepare a depreciation schedule for the four-year period using the straight-line method.
> Describe the posting procedures to the general ledger and the rules for totaling and ruling the following. a. Sales journal b. Purchases journal
> Describe the four procedures that most companies follow to maintain internal control of purchases of merchandise.
> Who issues a credit memorandum and why?
> Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?
> If a cash payments journal is supposed to save time spent writing, why are there so many entries in the Other Accounts Debit column?
> Record the following transactions in general journal form. a. Sold merchandise on account to D. North, invoice no. 4556, $2,515.25. b. Sold merchandise on account to NexStar Industries, invoice no. 4557, $775.00. c. NexStar Industries returned $225.50 wo
> What does an X under the total of a special journal’s Other Accounts column signify?
> Why is it a good practice to post daily to the accounts receivable or accounts payable ledgers?
> In a cash receipts journal, both the Accounts Receivable Credit column and the Cash Debit column were mistakenly underadded by $700. How will this error be discovered?
> What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts? (c) Purchases Returns and Allowances? (d) Sales? (e) Purchases Discounts? (f) Sales Returns and Allowances?
> For each of the following accounts, identify whether the normal balance is a debit or a credit. Also specify whether the account is a contra account. a. Sales Returns and Allowances b. Merchandise Inventory c. Sales d. Freight In e. Purchases Returns and
> What is the difference between a wholesale business and a retail business?
> Explain the meaning and importance of the shipping terms FOB destination and FOB shipping point. Who has title to the goods once they have been shipped?
> Nathan Systems uses a voucher system in which it records invoices at the gross amount. During October, it completed the following transactions: Oct. 2 Issued voucher no. 2632 in favor of Myers and Horn for the purchase of merchandise with an invoice pric
> Hartman Company, which uses a voucher system, has the following unpaid vouchers on July 1. The firm follows the practice of recording vouchers at the gross amount. The company completed the following transactions during July: July 1 Issued voucher no.
> Saenz Company uses a voucher system in which it records invoices at the gross amount. The following vouchers were issued during February and were unpaid on March 1: The following transactions were completed during March: Mar. 3 Issued voucher no. 1734
> Nillson’s Nursery uses the direct write-off method for recording bad debts. Required Journalize the following selected entries: 2012 Apr. 10 Write off the account of P. A. Seldon as uncollectible, $458. July 27 Write off the account of J. M. Weller as u
> La Hacienda Company has two departments: Furniture and Lighting. La Hacienda’s accountant prepares an adjusted trial balance (shown below) at the end of the fiscal year. The trial balance is prepared after all adjustments, including t
> Bay Book and Software has two sales departments: Book and Software. After recording and posting all adjustments, including the adjustments for merchandise inventory, the accountant prepared the adjusted trial balance (shown on the next page) at the end o
> Following is a trial balance prepared just before you were hired. Two accounts are missing, and the amount for Sales is off. Here are a few facts to consider. Our business is in a state that collects sales tax. I ran some totals, and we collected $1,800
> You are the bookkeeper at a small merchandising firm. You are comparing the income statements from the last three years. You notice that the Purchases Returns and Allowances account (as a percentage of net sales) has been increasing at an alarming rate.
> Jax Mercantile Co. has been northern Colorado’s premier outdoor gear source for over 50 years. Jax sells men’s, women’s, and children’s clothing for any outdoor activity. Customers can also find camping and fishing gear, mountaineering tools, and hunting
> You work for Gregory Plumbing Supply. You are responsible for training a new accounting clerk. She has the following questions for you to answer about this invoice. 1. Who is the buyer? 2. Who is paying the freight? 3. What is the customerâ€
> With regard to goods sold and purchased, explain how sales returns and allowances and purchases returns and allowances are different from each other.
> If you’re ever in Santa Cruz, California, take some time to visit Bookshop Santa Cruz. You’ll find books “that entertain, help solve problems, or occasionally, change a life.” Since opening in 1966, Bookshop Santa Cruz has been a vital part of the Bay Ar
> The following transactions were completed by Nelson’s Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4 Received cash from M. Alex in payment of August 25 invoice of $275, less cash discount. 7
> Hardy’s Landscape Service’s total revenue on account for 2018 amounted to $273,205. The company, which uses the allowance method, estimates bad debts at ½ percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec.
> The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Workin
> R. J. Hinton Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your Working Papers and CengageNow. The following transactions took place during April of this yea
> Refer to the information for Problem 10-1B on. In Problem 10-1B The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of
> May’s Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, May’s Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales a
> Lowery’s Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowery’s Pet Depot also uses an accounts payable ledger. Transactions for October related to the purchase
> Abbott Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Abbott’s sales staff fills out a sales slip for each sale. There is a state retail tax of 5 percent, which is collected
> Prepare entries in general journal form to record the following: Aug. 6 Woodard Company failed to pay its 30-day, 10 percent note for $600, dated July 9. The note is thus dishonored at maturity.
> The following T accounts show a series of four transactions concerning a sale of merchandise on account and subsequent payment of the amount owed. Describe what happened in each transaction. Accounts Cash Receivable Sales + (а) 1,500 | (b) 130 (c) 2
> Explain the following credit terms: (a) n/30; (b) 2/10, n/60; (c) 1/15, EOM, n/30.
> Prepare entries in general journal form to record the following: June 12 Sold merchandise on account to K. Perrot; terms n/30; $1,740. July 12 Received $740 in cash from K. Perrot and a 60-day, 7 percent note for $1,000, dated July 12. Aug. 17 Discounted
> Rogan Company’s total sales on account for the year amounted to $327,000. The company, which uses the allowance method, estimated bad debts at 1 percent of its credit sales. Required Journalize the following selected entries: 2017 Dec. 31 Record the adj
> On March 11, Rainz Company received a 90-day, 6 percent note for $1,500, dated March 11, from J. Rose, a charge customer, to satisfy his open account receivable. a. What is the due date of the note? b. How much interest is due at maturity? Given the prec
> On August 5, M. Valenty borrowed $8,500 from Costner State Bank for 45 days, with a discount rate of 7 percent. Accordingly, M. Valenty signed a note for $8,500, dated August 5. Write entries in general journal form to record the following transactions:
> As a result of a loan from Plateau State Bank, Trent Company signed a 90-day note, dated March 12, for $12,700 that the bank discounted at 7 percent. Journalize the entries for the maker in general journal form to record the following, assuming that the
> Andy Cooke gave a 60-day, 5.5 percent note, dated February 14, to Key Company, a creditor, in the amount of $10,500. a. What is the due date of the note? b. How much interest is to be paid on the note at maturity? c. Write the entries in general journal
> Part A: Calculate the interest on the following notes: Part B: Determine the maturity dates on the following notes: Date of Issue ___________Life of Note 1. January 18 …………
> The following transactions were completed by Nelson’s Boutique, a retailer, during July. Terms of sales on account are 2/10, n/30, FOB shipping point. July 3 Received cash from J. Smith in payment of June 29 invoice of $350, less cash discount. 6 Issued
> The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Wor
> Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your Working Papers and CengageNow. The following transactions took place during April of this year: Apr.
> Refer to the information for Problem 10-1A. In Problem 10-1A The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of
> Use the information in Problem A-1 to solve this problem. Assume that the van is five-year property for tax purposes. In Problem A-1 A delivery van was bought for $18,000. The estimated life of the van is four years. The trade-in value at the end of fou
> Why is an accounts receivable ledger or an accounts payable ledger necessary for a business with large numbers of credit customers or large numbers of vendors/suppliers?
> Shirley’s Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, Shirley’s Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the
> Berry’s Pet Store records purchase transactions in the general journal. The company is located in Boston, Massachusetts. In addition to a general ledger, Berry’s Pet Store also uses an accounts payable ledger. Transactions for April related to the purcha
> Abbott Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Abbott’s sales staff fills out a sales slip for each sale. There is a state retail tax of 5 percent, which is collected
> Bean Nursery sells bark to its customers at retail. Bean buys bark from a plywood mill in bulk and transports the bark in its own trucks. Information relating to the beginning inventory and purchases of bark is as follows: Beginning inventory ………………. 1,
> Record general journal entries to correct the errors described below. Assume that the incorrect entries were posted in the same period in which the errors occurred and were recorded using the periodic inventory system. a. A freight cost of $85 incurred o
> Record the following transactions in general journal form on the books of the seller (Fuentes Company) and then on the books of the buyer (Lowe Company) using the periodic inventory system. Fuentes Company a. Sold merchandise on account to Lowe Company,
> Record the following transactions in general journal form using the periodic inventory system: June 5 Sold merchandise on account to Wilson, Inc., $520; terms 1/10, n/30. 12 Bought merchandise on account from Mastercraft Company, $425; terms 2/10, n/45;
> Describe the transactions recorded in the following T accounts: Cash Accounts Payable Purchases (c) 1,176 (b) 150 | (a) 1,350 (a) 1,350 (c) 1,200 Purchases Returns and Allowances Purchases Discounts (b) 150 (c) 24
> Describe the transactions recorded in the following T accounts: Cash Accounts Receivable Sales (c) 5,042.10 (a) 5,320 (b) 175 (a) 5,320 (c) 5,145 Sales Returns and Allowances Sales Discounts (b) 175 (c) 102.90
> Indicate the journal in which each of the following transactions should be recorded. Assume a three-column purchases journal. Journal Transaction P CR | CP J a. Paid a creditor on account. b. Bought merchandise on account. c. Sold merchandise for ca
> What is the purpose of each of the following? a. Schedule of accounts receivable b. Schedule of accounts payable
> Use the information in Problem A-1 to solve this problem. In Problem A-1 A delivery van was bought for $18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be $2,000. Required Prepare a sched
> For the following purchases of merchandise, determine the amount of cash to be paid: Total Credit Amount of Рurchase Freight Charges Invoice Invoice Returns and Date Purchase Date Terms FOB Amount Allowances Pald June 1 2/10, n/30 Destination $550 $
> Kelley Company has completed the following October sales and purchases journals: a. Total and post the journals to T accounts for the general ledger and the accounts receivable and accounts payable ledgers. b. Complete a schedule of accounts receivable f
> Williams Corporation had the following purchases for May: May 3 Bought ten lawn rakes from Owens Company, invoice no. J34Y9, $250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, $15 (total $265.25). 11 Bo
> Toby Company had the following sales transactions for March: Mar. 6 Sold merchandise on account to Osbourne, Inc., invoice no. 1128, $563.17. 14 Sold merchandise on account to Ortiz Company, invoice no. 1129, $823.50. 20 Sold merchandise on account to Ba
> Record the following transactions for a perpetual inventory system in general journal form. a. Sold merchandise on account to Southridge Manufacturing, Inc., invoice no. 6910, $1,815.24. The cost of merchandise was $1,320. b. Issued credit memorandum no.
> Record the following transactions in general journal form for Ford Education Outfitters and Romero Textbooks, Inc. a. Ford Educational Outfitters bought merchandise on account from Romero Textbooks, Inc., invoice no. 10594, $1,875.34; terms net 30 days;
> Post the following entry to the general ledger and the subsidiary ledger. GENERAL JOURNAL Page 92 Post. Date Description Ref. Debit Credit 20-- Sept. 15 Accounts Payable, Jensen and Silva 291 50 Purchases Returns and Allowances 2 9 1 50 Credit memo
> Journalize the following transactions in general journal form. a. Bought merchandise on account from Brewer, Inc., invoice no. B2997, $914; terms net 30 days; FOB destination. b. Received credit memo no. 96 from Brewer, Inc., for merchandise returned, $2
> Record the following transactions in general journal form. a. Sold merchandise on account to A. Bauer, $680 plus $54.40 sales tax (invoice no. D446). b. Bauer returned $105.50 of the merchandise. Issued credit memo no. 114 for $113.94 ($105.50 for the am
> What is the difference between a cash discount and a trade discount?
> What is the difference between a periodic inventory system and a perpetual inventory system?
> Describe the posting procedure for a cash payments journal with an Other Accounts Debit column and several special columns, including an Accounts Payable Debit column.
> Describe the procedure for posting each of the following: a. From the sales journal to the accounts receivable ledger b. From the purchases journal to the accounts payable ledger
