2) Write journal entries in good form for the following. Each is separate unless stated otherwise. Dr Cr a) Your firm sells 60 pounds of Dr Ozs Brain Expanding Crystals for $1,200 for cash (churge cand over the web). Cost $600. Desperate Cupcake (buyer) authories expedited freight cost ofS75. Sales tax of 7.75% applies to this transaction b) Cupcake returns 12 pounds of the crystals in (a) saying that the buyer only needed 80% of the crystals to get thorough Accounting 210 Exam IL Post the return c) Allowance for Bad Debt has a debt balance of S275 but the normal balance should be S1,525 What is the adjusting entry to bring the account up to its appropriate balance. (Hint: Taccounts might help here) d) Write offa bad debt of $95 assuming accrual accounting e) Subsequently collect $35 of the 595 written of in (d) Dr Cr f) Write off a bad debt of $95 under the direct write off method g) Accrue wage expense of $650 at the end of the month h) Pay accrued wages of only $625 due to an over accrual error. Dr Cr 1) Sell iPhone for $525 including one-year warranty for cash. A value of $60 has been established for the warranty. Based on experience, a reserve of 10% for warranty expense has been established for the warranty. Record the transactions at the time of sale. j) After one month recognize the appropriate warranty revenue and expense from (1)

pur-new-sol

Related Questions