| Intermediate Accounting I |
| Quiz #3 (Take Home) Spring 2017 |
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| 1. The following transactions affecting the accounts receivable of Wonderland Corporation took place during the year ended January 31, 2015: |
| Sales (cash sales of $210,270 and remaining credit) |
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$591,050 |
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| Cash received from credit customers, all of whom took |
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| advantage of the discount feature of the company’s credit terms 4/10, n/30 |
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(assume gross method for discounts is used) |
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303,800 |
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| Cash received from cash customers |
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210,270 |
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| Accounts receivable written off as worthless |
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5,250 |
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| Credit issued to credit customers for sales returns and allowances |
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63,800 |
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| (no allowance for sales returns currently set up) |
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| Cash refunds given to cash customers for sales returns and allowances |
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13,318 |
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| Recoveries on accounts receivable written off as uncollectible in prior periods |
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| (not included in cash amount stated above) |
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8,290 |
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| The following two balances were taken from the January 31, 2014 balance sheet: |
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| Accounts receivable: |
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95,842 |
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| Allowance for doubtful accounts |
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9,740 (credit) |
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| The corporation provides for its net uncollectible account losses by crediting Allowance for Bad Debts for 4.5% of ending accounts receivable. |
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| Instructions: |
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| 1. Prepare the journal entries to record the transactions for the year ended January 31, 2015 |
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2. Prepare the adjusting journal entry for estimated uncollectible accounts on January 31, 2015.
| The following information for the month of March is available from Batters, Inc.’s accounting records: |
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| Balance per bank statement, March 2015 |
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$12,100 |
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| – Cash balance per books, March 31, 2015 |
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15,295 |
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| – Deposit made on February 28; recorded by bank on March 3 |
3,600 |
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| – March 31, 2015 outstanding checks: |
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#2346 |
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438 |
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#2348 |
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231 |
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#2355 |
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107 |
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| – Bank service charge for March (not recorded yet by Betters) |
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54 |
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– NSF check of customer returned by bank |
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832 |
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– A check drawn on Moore Co. erroneously charged to Batters |
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275 |
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– A $347 check to a supplier in payment of account was |
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erroneously recorded on Batter’s books as $437 |
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– Deposit made on March 31, recorded by bank April 3 |
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2,900 |
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