Other
ACCT 300B Chapter 7 Cash and Receivables Questions & Solutions
- Course
- Institution
ACCT 300B Intermediate Accounting IFRS Edition-2nd Chapter 7 Cash and Receivables Questions & Solutions
[Show more]
Seller
Follow
AcademicAssignments
Reviews received
Content preview
lOMoARcPSD|3013804Ch07-180204110130
Intermediate Accounting (California State University
Long Beach)
, Accounting
Intermediat
lOMoARcPSD|3013804
e IFRS Edition-2nd
Questions & Solutions
Chapter 7
Cash and
Receivables
Donald E. Kieso
Jerry J.
,Weygandt Terry
D. Warfield
, lOMoARcPSD|3013804
BRIEF EXERCISES
1 BE7-1 Kraft Enterprises owns the following assets at December 31, 2015.
Cash in bank—savings €68,00 Checking account balance €17,000
account 0
Cash on hand 9,30 Postdated checks 750
0
Tax refund due 31,400 Certificates of deposit (180- 90,000
day)
What amount should be reported as cash?
4 BE7-2 Restin Co. uses the gross method to record sales made on credit. On June 1, 2015, it made
sales of
£50,000 with terms 3/15, n/45. On June 12, 2015, Restin received full payment for the
June 1 sale. Prepare the required journal entries for Restin Co.
4 BE7-3 Use the information from BE7-2, assuming Restin Co. uses the net method to
account for cash discounts. Prepare the required journal entries for Restin Co.
5 BE7-4 Wilton, Inc. had net sales in 2015 of €1,400,000. At December 31, 2015, before
adjusting entries, the balances in selected accounts were Accounts Receivable €250,000
debit, and Allowance for Doubtful Accounts €2,400 credit. If Wilton estimates that 2% of its
net sales will prove to be uncollectible, prepare the December 31, 2015, journal entry to
record bad debt expense.
5 BE7-5 Use the information presented in BE7-4 for Wilton, Inc.
(a) Instead of estimating the uncollectibles at 2% of net sales, assume that 10% of
accounts receivable will prove to be uncollectible. Prepare the entry to record bad
debt expense.
(b) Instead of estimating uncollectibles at 2% of net sales, assume Wilton prepares an
aging schedule that estimates total uncollectible accounts at €24,600. Prepare the
entry to record bad debt expense.
6 BE7-6 Milner Family Importers sold goods to Tung Decorators for $30,000 on November
1, 2015, accepting Tung’s $30,000, 6-month, 6% note. Prepare Milner’s November 1 entry,
December 31 annual adjusting entry, and May 1 entry for the collection of the note and
interest.
6 BE7-7 Deng Acrobats lent NT$16,529 to Donaldson, Inc., accepting Donaldson’s 2-year,
NT$20,000, zero- interest-bearing note. The implied interest rate is 10%. Prepare Deng’s
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AcademicAssignments. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.89. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now