Prepare entries for Lake Company to record all the events

Assignment Help Accounting Basics
Reference no: EM132571701

Question - On July 2, 2018, Lake Company sold to Sue Black merchandise having a sales price of $9,000 (cost $5,400) with terms of 2/10. n/30. f.o.b. shipping point. Lake estimates that merchandise with a sales value of $900 will be returned. An invoice totaling $120, terms n/30, was received by Black on July 6 from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July 3, Black notified Lake that $350 of merchandise contained flaws. The same day, Lake issued a credit memo covering the defective merchandise and asked that it be returned at Lake's expense. Lake estimates the returned items to have a fair value of $140. The freight on the returned merchandise was $20 paid by Lake on July 7. On July 12, the company received a check for the balance due from Black.

Required -

(a) Prepare journal entries for Lake Company to record all the events noted above assuming sales and receivables are entered at gross selling price.

(b) Prepare the journal entry assuming that Sue Black did not remit payment until August 5.

Reference no: EM132571701

Questions Cloud

Differences between each of these styles of budgeting : Please do some research on top down vs bottom up budgeting. In your post describe the differences between each of these styles of budgeting.
Prepare entries that be made relative to sales of soap : Prepare journal entries that would be made relative to sales of soap powder and to the premium plan in both 2017 and 2018. Assume a FIFO inventory flow
What is the interest expense for the second year : Interest is payable annually on December 31 and the bonds mature in 6 years. The effective-interest method is used. What is the interest expense
Different alternative to given decision-making alternatives : Would you add a different alternative to the given decision-making alternatives? what are El Mejicano's objectives in this decision-making?
Prepare entries for Lake Company to record all the events : Prepare journal entries for Lake Company to record all the events noted above assuming sales and receivables are entered at gross selling price
What was the amount of the gain or loss on retirement : On March 31, 2014, Hanson Corporation sold $9,000,000 of its 8%, What was the amount of the gain or loss on retirement of the bonds
Prepare the journal entry at the date the bonds are issued : On October 1, 2017, Noller Company issued $8,000,000 par value, 10%, Prepare the journal entry at the date the bonds are issued
Personal or professional life : What evidence supports the main point? How could the topic of this article apply to your personal or professional life?
Prepare journal entries to record the sale of the buildig : Prepare the journal entries to record the sale of the building after having used the revaluation model using the asset adjustment method

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a three-month cash budget

Sales were $770,000 in August and $840,000 in September. Prepare a three-month cash budget, including a schedule for cash collections and material payments.

  What should be the terms of payment on the yen loan

Mauna Loa would like to hedge its yen receipts, but it has too many customers and transactions to make it practical to sell each receivable forward.

  Shulau2019s 347 grill has budgeted the following costs for

shulau2019s 347 grill has budgeted the following costs for a month in which 1600 steak dinners will be produced and

  Finding components of mixed overhead costs

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility.

  Prepare the journal entry at the date of the bond purchase

On January 1, 2017, Buffalo Company purchased 8% bonds having a maturity value of $360,000, Prepare the journal entry at the date of the bond purchase

  Calculate the diluted earnings per share

Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,070,000 of 6% convertible preferred stock was issued.

  Enter the dollar amount of each cost item

The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. Enter the dollar amount of each cost item

  Compute diluted earnings per share

Adcock issued $2,000,000 of 8% convertible bonds at face value during 2006. Each $1,000 bond is convertible into 30 shares of common stock. Compute diluted earnings per share for 2007. Complete the schedule and show all computations.

  Would this be an efficient way to raise tax revenue

Discussion 1 - One-Time Tax Rate - Would this be an efficient way to raise tax revenue? Why or why not

  Calculate gluco earnings per share

During the year ended December 31, 2014, Gluco, Inc., split its stock on a 4-for-1 basis. Calculate Gluco's earnings per share for 2013

  Calculate the number of units to be produced in june

Budgeted ending finished goods inventory for May is 3,150 units. Required - Calculate the number of units to be produced in June and July

  Prepare the General Journal entries for the August

Alpha Company received in full the payment for Broken's past debt. Use this information to prepare the General Journal entries (without explanation) for August

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd