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Ch 8 Hw Solutions

In: Business and Management

Submitted By launpalm
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EXERCISE 8-2

(a) Jan. 6 Accounts Receivable—Jackie Inc 7,000 Sales Revenue 7,000 16 Cash ($7,000 – $140) 6,860 Sales Discounts (2% X $7,000) 140 Accounts Receivable—Jackie Inc 7,000 (b) Jan. 10 Accounts Receivable—C. Bybee 9,000 Sales Revenue 9,000 Feb. 12 Cash 6,000 Accounts Receivable—C. Bybee 6,000 Mar. 10 Accounts Receivable—C. Bybee 60 Interest Revenue [2% X ($9,000 – $6,000)] 60

EXERCISE 8-4

(a) | Accounts Receivable | | Amount | | % | | Estimated Uncollectible | | | | | | | | | | 1–30 days31–60 days61–90 daysOver 90 days | | $65,000 17,600 8,500 7,000 | | 2.0 5.030.050.0 | | $1,300 880 2,550 3,500$8,230 |

(b) Mar. 31 Bad Debt Expense 7,330 Allowance for Doubtful Accounts ($8,230 – $900) 7,330

EXERCISE 8-7

(a) Mar. 3 Cash ($620,000 – $18,600) 601,400 Service Charge Expense (3% X $620,000) 18,600 Accounts Receivable 620,000 (b) May 10 Cash ($3,500 – $175) 3,325 Service Charge Expense (5% X $3,500) 175 Sales Revenue 3,500

EXERCISE 8-10

(a) 2014 Nov. 1 Notes Receivable 15,000 Cash 15,000 Dec. 11 Notes Receivable 6,750 Sales Revenue 6,750 16 Notes Receivable 4,400 Accounts Receivable—Russo 4,400 31 Interest Receivable 277 Interest Revenue* 277 *Calculation of interest revenue: Jeanne’s note: $15,000 X 9% X 2/12 = $225 Sharbo’s note: 6,750 X 8% X 20/360 = 30 Russo’s note: 4,400 X 12% X 15/360 = 22 Total accrued interest $277

(b) 2015 Nov. 1…...

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