Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used.
> Alpha Company purchased on account $2,700 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
General Journal:
Date
Accounts
Debit
Credit
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used.
> Alpha Company purchased on account $2,700 of merchandise from Bravo Company on May 2, 2016.
> Alpha Company returned, to Bravo Company, $300 of this merchandise on May 3, 2016.
> Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare Alpha Company's General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
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Related questions
QUESTION 7a:
Alpha Company prepares quarterly adjusting entries. On November1, 2017, Alpha Company purchased equipment with a sticker price of$8,515 and signed a note due in 9 months for $10,000 that includedinterest in the value of the note. Use this information to preparea general journal entry for the August 1 equipment purchase.Prepare any additional general journal adjusting entries for FiscalYears 2017 & 2018. Additionally, prepare the general journalentry to record the payment of the note when due in 2018.
General Journal
General Journal
Date | Accounts | Debit | Credit |
11/1/17 | |||
12/31/17 | |||
3/31/18 | |||
6/30/18 | |||
7/31/18 | |||
QUESTION 7b:
Alpha Company uses aging of Accounts Receivable to estimateuncollectible. The unadjusted Trial Balance amount of AccountsReceivable on December 31, 2016, has a balance that consistsof:
Days outstanding | Amount | Estimated Uncollectible |
0 â 60 | $300,000 | 1% |
61 â 120 | 90,000 | 2% |
Over 120 | 100,000 | 6% |
Total | $490,000 | 4,005 |
Activity during FiscalYear 2016, for Alpha Company consisted ofJuly 15 Alpha wrote of the Bravo Zulu Company account as notcollectable for the amount of $8,500.
Oct. 20 Alpha company recovered $5,500 from the Charlie DeltaCompany for settlement of their prior debt that had been off duringFY 2015.
Alpha Companyâs December 31, 2015 allowance for uncollectibleaccounts was $2,700/ Under the aging method, what amounts shouldAlpha Company report at December 31, 2016 for:
1. Allowance for Uncollectible Accounts
2. Bad Debt Expense
ANSWER 7:
1.___________________________
2.___________________________
