Reference no: EM132631843

Questions -

Q1. Waterway Enterprises owns the following assets at December 31, 2020.

Cash in bank-savings account 71,600

Checking account balance 19,500

Cash on hand 8,510

Postdated checks 950

Cash refund due from IRS 40,600

Certificates of deposit (180-day) 90,560

Required - What amount should be reported as cash?

Q2 Recent financial statements of General Mills, Inc. report net sales of $12,935,726,000. Accounts receivable are $918,316,000 at the beginning of the year and $981,411,000 at the end of the year.

(a) Compute General Mills' accounts receivable turnover. (Round answer to 2 decimal places, e.g. 15.25.)

(b) Compute General Mills' average collection period for accounts receivable in days. (Round answer to 2 decimal places, e.g. 15.25.)

Q3. On June 3, Sandhill Company sold to Chester Company merchandise having a sale price of $3,600 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $91, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.

Prepare journal entries on the Sandhill Company books to record all the events noted above under each of the following bases.

(1) Sales and receivables are entered at gross selling price.

(2) Sales and receivables are entered at net of cash discounts.