The bookkeeper of V. Brown Electric Supply, Inc. recorded a…
The bookkeeper of V. Brown Electric Supply, Inc. recorded a $1,500 check as $15,000 in payment of the current month’s rent. Which of the following journal entries is needed to adjust for this error in the books of the company? A) Cash 13,500 Sales Revenue 13,500 B) Rent Expense 15,000 Cash 15,000 C) Cash 13,500 Rent Expense 13,500 D) Booking Error 1,500 Cash 1,500
Read DetailsThe following information is from the records of Chumney Pho…
The following information is from the records of Chumney Photography: Accounts Receivable, December 31, 2019 $22,000 (debit)Allowance for Bad Debts, December 31, 2019 prior to adjustment 800 (debit)Net credit sales for 2019 95,000Accounts written off as uncollectible during 2019 450 Bad debts expense is estimated by the aging-of-receivables method. Management estimates that $2,850 of accounts receivable will be uncollectible. Calculate the amount of net accounts receivable after the adjustment for bad debts. (Hint: You have the balance of the Account Receivable at the end of year and you have the target in the Allowance account)) A) $19,950B) $19,150C) $18,350D) $17,900
Read DetailsBerro Musical Instruments, merchandisers of musical instrume…
Berro Musical Instruments, merchandisers of musical instruments, has provided the following details: Mar. 5 Inventory purchased on account $800,000Mar. 8 Freight in 30,000Mar. 13 Purchase returns 60,000Mar. 14 Allowances by vendor 10,000Mar. 20 Payment made to vendor for the purchases of March 5 ? Credit terms are: 4/20, n/45, FOB shipping point. Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month. Assume that the perpetual inventory system is used. (Hint: no discount can be taken on the freight, returns or the allowance)A) $790,000B) $729,600C) $730,000D) $730,800
Read DetailsWhich of the following items would require an adjusting ent…
Which of the following items would require an adjusting entry after preparation of the bank reconciliation?A) errors made by the bank revealed by the bank reconciliationB) all items on the bank’s sideC) errors made on the books revealed by the bank reconciliationD) outstanding checks
Read Details