[SOLVED] In this module you will be required to record: (1) payment | SolutionInn
Question: In this module you will be required to record: (1) payment of a short-term note, (2) write of a bad debt using the direct write-off In this module you will be required to record: (1) payment of a short-term note, (2) write of a bad debt using the ‘direct write-off method,’ (3) collection of a short-term note receivable, (4) sale of an obsolete plant asset. Transaction for June 17 – June 23 ______________________________________________________________________________ June 17: Payment of an account payable balance after the discount period has expired Brandon’s Cabinet Shop paid the overdue account of Bright-Way Cabinets, issuing a check for the account balance of May 25. Bright-Way Cabinet’s credit term are 2/10, net/20. Find the balance of Bright-Way Cabinets and record the late payment of the May 25 invoice. Check Number: 45006. Invoice Number: BW110. Vendor Number: 21500. ______________________________________________________________________________ June 17: Record the payment of a note payable Brandon’s Cabinet Shop issued a check for payment of one of its notes payable. The amount and terms of the note dated May 3 are $12,000 at 9% interest. Be sure to use exact days and a 360 day 'banker's year' for your interest calculation. Check Number: 45007. Invoice Number: NTPAY (note payable). ______________________________________________________________________________ June 18: Record the payment of an account payable Brandon’s Cabinet Shop issued a check to Bright-Way Cabinets for invoice BW250. June 18 is the last day of the discount period. Check Number: 45008. Invoice Number: BW250. Vendor Number: 21500. ______________________________________________________________________________ June 18: Record the direct write-off of an uncollectible account receivable Brandon’s Cabinet Shop received notice that Franks’ Cafe is no longer in business. Repeated notices to Frank’s Cafe of the overdue account of $600.00 have gone unanswered. Record the write off of the account. Because bad debts for Brandon’s Cabinet Shop have been less than 1⁄2% of credit sales, the accountant for Brandon’s Cabinet Shop uses the direct write-off method of recognizing uncollectible accounts. Invoice Number: WROFF (write-off). Customer Number: 10830. ______________________________________________________________________________ June 19: Record the collection of a note receivable A check was received for payment in full of a $500.00, 6%, 90 day short-term note receivable. Interest earned has not been accrued on this note. Use the ‘banker’s year’ of 360 days to compute the interest. Invoice Number: NTREC (note receivable). June 20: Record the purchase of store fixtures Brandon’s Cabinet Shop purchased store fixtures on account from West Brook Supplies. The list or catalog price of the store equipment was $7,200.00 with a trade discount of 20% (The store fixtures will be purchased for 80% of the catalog price). Invoice Number: WB688. Vendor Number: 29900. ______________________________________________________________________________ June 20: Record the disposal of an old asset The store fixtures purchased from West Brook Supplies included a state-of-the-art cash register. Brandon’s Cabinet Shop sold the old cash register for its book value to a small business. The original cost of the cash register was $3,200.00. The current balance of its accumulated depreciation is $2,700.00. Depreciation on the register is $100.00 per calendar quarter. Record the sale of the old cash register. Two entries are required: (1) record the depreciation for the calendar quarter and type DEPRE at the invoice prompt and (2) record the sale of the cash register for cash and enter ASALE as the invoice prompt. ______________________________________________________________________________ June 23: Record the sale of cabinets on account Roberts of Roseville purchased cabinets for $4,800.00. Invoice Number: B3457. Customer Number: 11700. ______________________________________________________________________________ June 23: Record the completion of a cabinet installment paid for in advance Brandon’s Cabinet Shop completed the installment of the cabinets purchased on June 13. The installment fees were paid in advance. The invoice was issued on June 13. Record the completion of the installment. Invoice Number: B3456.
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In this module you will be required to record the: (1) recovery of a bad debt, (2) payment of csh dividend declared, (3) replenish a petty cash fund, and (5) required journal entries for a bank reconciliation. ______________________________________________________________________________ Transactions for June 24- 30 and bank Reconciliation June 24: Record the recovery of a bad debt Today, an agent for Frank’s Cafe remitted a check for the account which was previously written off on June 18. Examine the subsidiary ledger for accounts receivable to find the sales invoice number and the amount of the direct write-off. Invoice Number: RECOV (recovery). Customer Number: 10830.