Question

What are the journal entries?

1. EYES sold 12,400 frames throughout 2015. All frames were sold for $80 each. 25% of these sales are on account; 75% are cash sales. *Note: EYES uses a periodic inventory system, so you will account for the COGS at the end of the year.

2. During 2015, customers made sales returns are as follows: 600 frames*Returns occur in the same percentages as sales are made, and customers are given a refund in the same manner as the original payment.

3. Collections of accounts receivable throughout 2015 are $197,500.

4. Periodic inventory is used. Purchases of inventory on account during 2015 were as follows:

Jan. 1 2,000 frames at $27/frame

Apr. 12              3,900 frames at $35/frame

Jun. 30              4,000 frames at $33/frame

Sept. 17            2,400 frames at $32/frame

Dec. 1               3,600 frames at $35/frame

5. 270 frames from the Sept. 17 purchase were returned for credit.

6. Payments on accounts payable were $425,000.

7. The note payable was taken out on Oct. 1, 2014 and was due on July 1, 2015. The note required interest at the following percentage: 8%

The bookkeeper forgot to accrue interest on the note at the end of 2014. Make the correcting entry for the 2014 interest due.

8. On June 30, 2015 the interest due was paid and the note was paid in full.

9. On June 30, 2015 the 2014 annual rent payment expired



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