Question

Brinker accepts all major bank credit cards, including First Savings Bank's, which assesses a 4.5% charge on sales for using its card. On May 26, Brinker had $5,000 in First Savings Bank Card credit sales. What entry should Brinker make on May 26 to record the deposit

A)On July 9, Mifflin Company receives a $8,900, 90-day, 12% note from customer Payton Summers as payment on account. Compute the amount due at maturity for the note. (Use 360 days a year.)
B)On November 1, Orpheum Company accepted a $11,300, 90-day, 12% note from a customer to settle an account. What entry should be made on the November 1 to record the note acceptance
C)Jervis sells $2,700 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 4% factoring fee. What entry should Jervis make to record the transaction
D) Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $142,500, allowance for doubtful accounts of $1,045 (credit) and sales of $1,115,000. If uncollectible accounts are estimated to be 8% of accounts receivable, what is the amount of the bad debts expense adjusting entry?
E) On February 1, a customer's account balance of $4,200 was deemed to be uncollectible. What entry should be recorded on February 1 to record the write-off assuming the company uses the allowance method
F) On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,100; Allowance for Doubtful Accounts, credit balance of $1,051. What amount should be debited to Bad Debts Expense, assuming 4% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible

Answer 1

Dr Cash $4,775

Dr Credit Card Expense 225

Cr Credit Sales 5,000

Step-by-step explanation:

5,000 x 4.5% = $225 credit card expense

5,000 - 225 = $4,775 debit to cash

Dr Cash $4,775

Dr Credit Card Expense 225

Cr Credit Sales 5,000

A) $8,900 * (90/360) * (12/100) = $267

= $8,900 + $267

= $9,167

B) Dr Note Receivable $11,300;

Cr Accounts Receivable $11,300.

C) Dr cash $2,592;

Dr factoring fee expense $108;

Cr Accounts receivable $2,700

D) $142,500 x 8/100 = 11,400.00

= $11,400.00 + $1,045

= $12,445.00

E) Dr Allowance for doubtful debt - $4,200

Cr Account Receivable - $4,200

F) $98,100 x 4/100 = $3,924.00

= $3,924.00 - $1,051

= $2,873.00