Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

The Accounts Receivable balance on September 30 was $79,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

The information below was used to prepare a bank reconciliation for Lorena Company at October 31:

∙      According to the bank statement, the bank balance as of October 31 was $8,765. According to the books, the cash balance as of October 31 is $9,557.

∙      Outstanding checks totaled $1,433.

∙      A customer's check for $999 was returned for NSF.

∙      October's service charge was $100.

∙      The bank collected $1,600 from a customer of Lorena Company in payment of a note receivable, including interest of $100.

∙      A new bookkeeper had errors in posting checks and recording cash receipts:

       1. Check #930 for Salaries Expense written for $930, recorded as $430.

       2. A cash sale for $2,300 on October 15 was not recorded by the bookkeeper since she was in a hurry to go to lunch. Ignore Cost of Goods Sold.

∙      A deposit was made by the company for $900. This was the correct amount, however, the bank made a mistake and recorded the deposit as $890.

∙      Deposits made at month-end totaled $4,516; these were not shown on the bank statement.

Required:

1. Prepare the bank reconciliation at October 31.

2. Prepare the journal entries at October 31.

Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

The Accounts Receivable balance on September 30 was $83,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

1.) The information below was used to prepare a bank reconciliation for Lorena Company at October 31:

∙      According to the bank statement, the bank balance as of October 31 was $8,765. According to the books, the cash balance as of October 31 is $9,557.

∙      Outstanding checks totaled $1,433.

∙      A customer's check for $999 was returned for NSF.

∙      October's service charge was $100.

∙      The bank collected $1,600 from a customer of Lorena Company in payment of a note receivable, including interest of $100.

∙      A new bookkeeper had errors in posting checks and recording cash receipts:

       1. Check #930 for Salaries Expense written for $930, recorded as $430.

       2. A cash sale for $2,300 on October 15 was not recorded by the bookkeeper since she was in a hurry to go to lunch. Ignore Cost of Goods Sold.

∙      A deposit was made by the company for $900. This was the correct amount, however, the bank made a mistake and recorded the deposit as $890.

∙      Deposits made at month-end totaled $4,516; these were not shown on the bank statement.

Required:

1. Prepare the bank reconciliation at October 31.

2. Prepare the journal entries at October 31.

Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 25% pay their accounts in the month of sale, while the remaining 75% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

The Accounts Receivable balance on September 30 was $72,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3]

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James Company began the month of October with inventory of $23,000. The following inventory transactions occurred during the month:

1. The company purchased merchandise on account for $34,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $580 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $19,200 was sold on account for $29,600.
4. It was determined that inventory on hand at the end of October cost $37,360.

Problem 8-1 (Algo) Part 1

Required:
1. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 20% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

The Accounts Receivable balance on September 30 was $85,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

The Accounts Receivable balance on September 30 was $79,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.

Required information

Problem 8-1 (Algo) Various inventory transactions; journal entries [LO8-1, 8-2, 8-3]

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[The following information applies to the questions displayed below.]


James Company began the month of October with inventory of $16,000. The following inventory transactions occurred during the month:

1. The company purchased merchandise on account for $23,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $510 were paid in cash.
2. On October 31, James paid for the merchandise purchased on October 12.
3. During October merchandise costing $18,150 was sold on account for $28,200.
4. It was determined that inventory on hand at the end of October cost $21,390.

Problem 8-1 (Algo) Part 1

Required:
1. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Schedule of Cash Collections of Accounts Receivable

OfficeMart Inc. has "cash and carry" customers and credit customers. OfficeMart estimates that 30% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 20% pay their accounts in the month of sale, while the remaining 80% pay their accounts in the month following the month of sale. Projected sales for the next three months are as follows:

The Accounts Receivable balance on September 30 was $74,000.

Prepare a schedule of cash collections from sales for October, November, and December. Round all calculations to the nearest whole dollar.