What journal entry should be made to record the transaction

Assignment Help Financial Accounting

Reference no: EM133333984

Problem:

1. Kent Physical Therapy provides services worth $1,000 to a customer on account at a 25% trade discount. What journal entry should be made to record the transaction?

2. Antique Jewelry reported the following amounts at the end of the year:
Total jewelry sales = $750,000
Sales returns = $50,000
Sales allowances = $30,000
Sales discounts = $20,000
In addition, at the end of the year, the company estimates the following transactions
associated with this year's sales will occur next year: Sales returns: $5,000; Sales allowances:
$2,000; Sales discounts: $2,000. How much is net revenues? Show your calculations.

3. E5-3 On March 12, Medical Waste Services provides services on account to Grace Hospital for $11,000, discount terms (credit terms) 2/10, n/30. Grace pays for those services on March 20.Required: For Medical Waste Services, 1) record the service on account on March 12 and
2) record the collection of cash on March 20.

4. E5-4 (modified) Refer to the information in E5-3, but now assume that Grace does not pay for the services until March 31, missing the 2% sales discount. Required: For Medical Waste Services, record the collection of cash on March 31.

5. Belfair Clinic uses the allowance method to account for its uncollectible accounts. It has the following balances on December 31, 2022 before any adjusting entries:
Accounts Receivable = $200,000
Allowance for Uncollectible Accounts = $18,000 (credit)
The clinic estimates uncollectible accounts to be 25% of Accounts Receivable.
What year-end adjustment (adjusting entry) should be made for uncollectible accounts?

6. What journal entry should be made to record a $50 price reduction given to a dissatisfied customer who previously purchased merchandise on account? The customer kept the merchandise.

Reference no: EM133333984

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