Worksheets20A1 - Intermediate Accounting - Mid I
Total questions: 5
Worksheet time: 15mins
On Jul 5, Jeff Company sold to Bezos Company merchandise having a sale price of $4,000 with terms of 2/10, n/60, f.o.b. shipping point. On Jul 14, the company received a check for the balance due from Bezos Company. What is the journal entries at Jeff Company books to records sales using the gross method at Jul 14?
Dr. Cash $3,920
Dr. Sales discounts $80
Cr. Accounts receivable $4,000
Dr. Accounts receivable $3,920
Cr. Sales $3,920
Dr. Cash $4,800
Cr. Accounts receivable $4,800
Dr. Cash $4,000
Dr. Sales discounts $80
Cr. Accounts receivable $4,080
Dr. Cash $3,920
Cr. Accounts receivable $3,920
On June 2, Selena Company sold to Gomez Company merchandise having a sale price $6,000 with terms of 2/10, n/60, f.o.b. shipping point. On June 11, the company received a check for the balance do from Gomez Company. Assuming Selena records sales using the net method. What is the journal entries at Selena Company books to record the sale?
Dr. Cash $6,000
Cr. Accounts receivable $6,000
Dr. Accounts receivable $5,880
Cr. Sales $5,880
Dr. Accounts receivable $6,000
Cr. Cash $6,000
Dr. Sales $5,880
Cr. Accounts receivable $5,880
Dr. Cash $6,000
Cr. Accounts receivable $5,880
Cr. Sales discounts $120
Rock Company had a balance Accounts Receivable of $180,000, Allowance for Doubtful Accounts of $4,000, Sales (all on credit) of $600,000, and Sales return and allowances of $40,000. What is the journal entry if Rock estimates bad debts at 2% of net sales?
Dr. Bad debt expense $12,000
Cr. Allowance for doubtful accounts $12,000
Dr. Bad debt expense $11,200
Cr. Allowance for doubtful accounts $11,200
Dr. Bad debt expense $12,800
Cr. Allowance for doubtful accounts $12,800
Dr. Allowance for doubtful accounts $11,200
Cr. Bad debt expense $11,200
None of these
Obama Inc. trades its used machine for a new model at Bezos Inc. The exchange has commercial substance. The used machine has a book value of $10,000 (original cost $16,000 less $6,000 accumulated depreciation) and fair value of $8,000. The new model lists for $20,000. Bezos gives Obama a trade-in allowance of $11,000 for the used machine. What is the journal entry to record this transaction at Obama?
Dr. Equipment $17,000
Dr. Accumulated Depreciation-Equipment $6,000
Cr. Equipment $16,000
Cr. Cash $7,000
Dr. Equipment $17,000
Dr. Loss on Disposal of Equipment $2,000
Cr. Equipment $16,000
Cr. Cash $3,000
Dr. Equipment $20,000
Dr. Accumulated Depreciation-Equipment $6,000
Dr. Loss on Disposal of Equipment $2,000
Cr. Equipment $16,000
Cr. Cash $12,000
Dr. Equipment $20,000
Dr. Accumulated Depreciation-Equipment $6,000
Cr. Equipment $16,000
Cr. Cash $10,000
Dr. Equipment $17,000
Dr. Accumulated Depreciation-Equipment $6,000
Dr. Loss on Disposal of Equipment $2,000
Cr. Equipment $16,000
Cr. Cash $9,000
Kaylie Corporation traded in used machinery with a book value of $70,000 (cost $120,000 less accumulated depreciation $50,000) and a fair value of $100,000. It receives in exchange a machine with a fair value of $80,000 plus cash of $20,000. The portion of the gain in a company recognizes is:
$6,000
$14,000
$20,000
$10,000
None of these
