c.
Yes. Sleek should take advantage of 1/10, n/30 purchase discounts, even if it must borrow
Pants ($17,820 – $237.60 = $17,582.40).
PROBLEM 6.5B
General Journal
HIP PANTS AND SLEEK (concluded)
60 Minutes, Strong
a.
PROBLEM 6.6B
QUEEN ENTERPRISES
The easiest way for a student to solve this problem is to record the journal entries that the
accounting clerk made and to compare them with the journal entries that should have
been made.
Entries Record by the Accounting Clerk
15,000
Accounts receivable………………………………… 15,000
e.
PROBLEM 6.6B
QUEEN ENTERPRISES (concluded)
The journal entry to correct the accounting clerk’s errors is (assuming that Queen’s books
have yet to be closed for the year).
The journal entry to correct the accounting clerk’s errors assuming that the ending
inventory balance has been adjusted based on a physical inventory (and assuming that
Queen’s books have been closed for the
y
ear
)
is:
Accounts receivable………………………………..
c.
have been closed for the year).
30 Minutes, Strong
a. $ 100,000
PROBLEM 6.7B
COMPUTER RESOURCES
Sales
a.
40 Minutes, Strong PROBLEM 6.8B
HEARTHSTONE
Parts a, c, g, and h follow; parts b, d, e, and f are on the next page.
The operating cycle of a merchandising company consists of purchasing merchandise,
Jan 5 58,200
Accounts Pa
y
able
(
Rock Creek Cor
p
oration
)
58,200
e.
Jan 5 58,200
y
(
p
)
10 42,000
Sales 42,000
Accounts Receivable (Harolds, Inc.)
PROBLEM 6.8B
b.
2016
Purchases
General Journal
2016
HEARTHSTONE (concluded)
n/60. Net cost, $60,000, less 3%.
Inventory
Purchased merchandise on account; terms, 3/10,
Journal entries assuming use of a periodic system
n/60, net cost, $60,000, less 3%.