Exam 8: Receivables

At the beginning of 2014,Mark's sales had the following ledger balances: During the year there were $450,000 of credit sales,$460,000 of collections,and $3,700 of write-offs.At the end of the year,Mark's adjusted for uncollectible account expense using the aging method,and calculated an amount of $1,600 as their estimate of uncollectible accounts. -At the end of the year,what was the balance in the Allowance account?

Anchor Sales accepts credit cards from its customers.Assume Anchor makes a sale of $100 and the processor charges a 3% fee.Assume that the credit card processing company uses the gross method of depositing funds.This method employs a sequence of two separate journal entries to record the revenue transaction and settlement with the processor.Please provide the first journal entry made by Anchor to record the sales revenue.

At the beginning of 2014,Mark's sales had the following ledger balances: During the year there were $450,000 of credit sales,$460,000 of collections,and $3,700 of write-offs.At the end of the year,Mark's adjusted for uncollectible account expense using the percent-of-sales method,and applied a rate,based on past history,of 1.2% -At the end of the year,what was the balance in the Uncollectible accounts expense?

Which of the following exists if the maker of a promissory note fails to pay the note on the due date?

On January 1,Wolfie's Supply sold $222 worth of goods to customer Abe Smith on account.On January 12,Wolfie's collected the amount from the customer.Please record the journal entry for the cash collection.

Barker Sales has a days' sales in receivables figure of 40 and Xanadu Company has a days' sales in receivables of 32.This would suggest that Xanadu is having greater difficulty collecting their accounts receivable than Barker.