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KTTC1 - BT C5
KTTC1 - BT C5
On July 18, 2013, Philly Factory sold 20 units of goods to Dave Furniture for 8.000.000
(excluding 10% VAT). Dave received 2% discount for its prompt payment (via bank
transfer). Prepare joural entries to record the sale.
5.2
On March 12, 2013, Admiral Electronics sold 20 fax machines to Cool Stuff Co. for
20.000.000 (excluding 10% VAT) on credit. Credit terms state that if Cool made the
payment within 10 days, it will received 2% of discount. On March 15, Cool Stuff Co.
had tranferred money to fully pay for the goods. Prepare journal entries to record the sale
and the payment.
5.3.
On June 14, 2013, Rumsfeld Company sold 100 units of material to Powell Heating and
Cooling on account. The units list for 12.000.000 (excluding 10% VAT). On June 15,
Powell was granted a 25% discount on total amount of the invoice due to some defects in
the material. On June 25, Powell had tranferred money to fully pay (net amount) for the
goods.
Required:
b/ Given the fact that Rumsfeld Company offers 1% discount for all of payment made
within 15 day from shipping, prepare the journal entry to record the sale and the payment
5.4
Beginning balance:
During the year of Y, the following transactions related to receivables and cash occurred:
(Unit: 1000 VND)
1.Sold merchandise to Lennox Company for 11.000 (including 10% VAT) on credit.
(Cost of goods sold – COGS) 5.000
2.Sold merchandise to Maddox Company for 88.000 (including 10% VAT) for cash in
bank. (Cost of goods sold – COGS) 50.000
3.Received 50% of the invoice on 28 Feb from Lennox via bank transfer
5.Used cash on hand to pay for electricity expenses : 2.200 (including 10% VAT)
9.Offerred to Maddox 10% discount on selling amount in transaction 2 due to fault in the
color of merchandise.
10.At the year end, estimated that 1% of trade receivables might not be collected.
Required:
5.5
During Burns Company's first year of operations, credit sales totaled $140,000 and
collections on credit sales totaled $105,000. Burns estimates that bad debt losses amount
to 1.5% of account receivables. By year-end, Burns had written off $300 of specific
accounts as uncollectible.
Required:
1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt
expense.
2. Show the year-end Statement of Financial Position presentation for accounts receivable