193. The following account balances are taken from Ferguson Sports at December 31.
20162015
Accounts receivable18,02023,450
Net sales163,500157,100
Calculate the number of days' sales uncollected for both years. According to this analysis, is the company's collection of receivables improving? Explain.
194. Gardener Company had the following transactions during January:
Jan. 10
Purchased merchandise at a $8,900 price, invoice dated January10, terms 1/10, n/30.
13
Received a $900 credit memorandum (at full invoice price) for the return of merchandise that it purchased on January10.
18
Purchased merchandise at a $8,500 price, invoice dated January18, terms 2/10, n/30.
27
Paid for the merchandise purchased on January18, less the discount.
31
Paid for the merchandise purchased on January10. Payment was delayed because the invoice was mistakenly filed for payment today. This error caused the discount to be lost.
Using the net method of recording purchases, prepare the journal entries to record these January transactions.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here