Solution Manual AR - Empleo
Chapter 4
Receivables and Related Revenues
MULTIPLE CHOICE – THEORY
1. D
6. D
2. C
7. B
3. C
8. B
4. B
9. A
Problem 1 (Fontana Blue)
a.
Cost of Sales
Inventory
20,000
b.
Cost of Sales
Inventory
18,000
18,000
c.
No adjustment
d.
Sales
20,000
40,000
Accounts Receivable
e.
40,000
Sales
60,000
Accounts Receivable
60,000
Inventory
33,600
Cost of Sales
f.
33,600
Sales
120,000
Accounts Receivable
g.
120,000
Accounts Receivable
Sales
60,000
60,000
h.
No adjustment
i.
Accounts Receivable
Sales
80,000
Cost of Sales
Inventory
55,000
Accounts Receivable
Sales
90,000
j.
80,000
55,000
90,000
Problem 2 (Magnolia Company)
1.
2.
Accounts Payable – B
Accounts Receivable - B
74,000
Accounts Receivable – L
Accounts Receivable – C
16,200
3.
16,200
No disposition yet (Customer D)
4.
74,000
Sales
24,000
Accounts Receivable – E
24,000
38
5. D
10. D
Chapter 4
Receivables and Related Revenues
5.
Inventory
16,500
Cost of Sales
6.
16,500
Sales
60,000
Accounts Receivable - F
Advances from Customers
7.
Sales
15,000
45,000
85,000
Accounts Receivable – G
Inventory
85,000
59,000
Cost of Sales
8.
Sales
9.
59,000
2,500
Sales
Accounts Receivable – H
10,000 / 200 x (200 – 150) = 2,500
180,000
Accounts Receivable – I
10.
180,000
Inventory
120,000
Cost of Sales
11.
2,500
120,000
Sales Returns and Allowances
Sales
5,000
5,000
Problem 3 (Blooms Company)
Account
1
2
3
4
5
6
Total
Per client
12,000
22,000
97,600
20,000
55,000
7,500
215,300
Adjustment
Per audit
(98,800)
(98,800)
Age Classification
Not due
1-60 days past due
61-120 days past due
Over 120 days past due
Total
Notes Receivable
Interest Income
Accounts Receivable
Not due
12,000
22,000
0
20,000
Receivables and Related Revenues
MULTIPLE CHOICE – THEORY
1. D
6. D
2. C
7. B
3. C
8. B
4. B
9. A
Problem 1 (Fontana Blue)
a.
Cost of Sales
Inventory
20,000
b.
Cost of Sales
Inventory
18,000
18,000
c.
No adjustment
d.
Sales
20,000
40,000
Accounts Receivable
e.
40,000
Sales
60,000
Accounts Receivable
60,000
Inventory
33,600
Cost of Sales
f.
33,600
Sales
120,000
Accounts Receivable
g.
120,000
Accounts Receivable
Sales
60,000
60,000
h.
No adjustment
i.
Accounts Receivable
Sales
80,000
Cost of Sales
Inventory
55,000
Accounts Receivable
Sales
90,000
j.
80,000
55,000
90,000
Problem 2 (Magnolia Company)
1.
2.
Accounts Payable – B
Accounts Receivable - B
74,000
Accounts Receivable – L
Accounts Receivable – C
16,200
3.
16,200
No disposition yet (Customer D)
4.
74,000
Sales
24,000
Accounts Receivable – E
24,000
38
5. D
10. D
Chapter 4
Receivables and Related Revenues
5.
Inventory
16,500
Cost of Sales
6.
16,500
Sales
60,000
Accounts Receivable - F
Advances from Customers
7.
Sales
15,000
45,000
85,000
Accounts Receivable – G
Inventory
85,000
59,000
Cost of Sales
8.
Sales
9.
59,000
2,500
Sales
Accounts Receivable – H
10,000 / 200 x (200 – 150) = 2,500
180,000
Accounts Receivable – I
10.
180,000
Inventory
120,000
Cost of Sales
11.
2,500
120,000
Sales Returns and Allowances
Sales
5,000
5,000
Problem 3 (Blooms Company)
Account
1
2
3
4
5
6
Total
Per client
12,000
22,000
97,600
20,000
55,000
7,500
215,300
Adjustment
Per audit
(98,800)
(98,800)
Age Classification
Not due
1-60 days past due
61-120 days past due
Over 120 days past due
Total
Notes Receivable
Interest Income
Accounts Receivable
Not due
12,000
22,000
0
20,000