1 collections of accounts receivable that previously have

Assignment Help Financial Accounting

Reference no: EM13355674

1. Collections of accounts receivable that previously have been written off are credited to:
A.a gain account
B.accounts receivable
C.bad debts expense
D.retained earnings

2.Which of the following do not change the balance in Accounts receivable?
A.Returns on credit sales
B.Collections from customer accounts
C.Bad debts expense adjustment
D.Write-offs

The following facts relate to Questions 3 through 7
3.On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 10?

Accounts receivable	7,840
Sales		7,840

Accounts receivable	8,000
Sales		8,000

Accounts receivable	7,840
Cash discounts	160
Sales		8,000

Accounts receivable	8,000
Cash discounts		160
Sales		7,840

4.On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?

Cash	7,840
Accounts receivable		7,840

Cash	7,840
Sales discounts	160
Accounts receivable		8,000

Cash	7,840
Sales	160
Accounts receivable		8,000

Cash	8,000
Sales discounts	160
Accounts receivable		8,000
Sales		160

5. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?

Cash	8,000
Accounts receivable		7,840
Discounts revenue		160

Cash	8,000
Accounts receivable		7,840
Interest revenue		160

Cash	8,160
Accounts receivable		8,000
Interest revenue		160

Cash	8,000
Accounts receivable		8,000

6. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. What entry would Flores make on November 17, assuming the correct payment was received on that date if the net method of accounting for cash discounts had been used instead?

Cash	7,840
Accounts receivable		7,840

Cash	7,840
Sales discounts	160
Accounts receivable		8,000

Cash	7,840
Sales	160
Accounts receivable		8,000

Cash	8,000
Sales discounts	160
Accounts receivable		8,000
Sales		160

7. On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. What entry would Flores make on December 10, assuming the correct payment was received on that date if the net method of accounting for cash discounts was used instead?

Cash	8,000
Accounts receivable		7,840
Discounts revenue		160

Cash	8,000
Accounts receivable		7,840
Interest revenue		160

Cash	8,160
Accounts receivable		8,000
Interest revenue		160

Cash	8,000
Accounts receivable		8,000

Reference no: EM13355674

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