Cash And Receivables: Assignment Questions

CHAPTER 7
Cash and Receivables
ASSIGNMENT CLASSIFICATION TABLE
Topics

Questions

Brief
Exercises

Exercises

Problems

1.

Accounting for cash.

1, 2, 3, 4, 21

1

1, 2

1

2.

Accounting for accounts receivable, bad debts, other allowances.

5, 6, 7, 8, 9,
10, 11, 12,
13, 14, 15

2, 3, 4, 5

3, 4, 5, 6, 7,
8, 9, 10, 11,
12, 18, 19

2, 3, 4, 5,
6, 10, 11

1, 2, 3, 4,
5, 10, 11

3.

Accounting for notes receivable. 13, 14

6, 7, 8

18, 19

8, 9

6, 7, 8, 9

4.

Assignment and factoring of accounts receivable. 16, 17, 18, 19

9, 10, 11,
12

13, 14, 15,
16, 17

7, 12

6, 8

5.

Analysis of receivables.

20

13

20, 21

1, 12

Petty cash and bank
reconciliations. …show more content…
2. June 3 Accounts Receivable—Chester
Arthur...........................................................
Sales ($3,000 X 98%)............................

7-20

3,000
3,000
2,940
60
3,000

2,940
2,940

EXERCISE 7-5 (Continued)
June 12 Cash ............................................................... 2,940
Accounts Receivable—Chester
Arthur ($2,940) ..................................
(b)

2,940

July 29 Cash ............................................................... 3,000
Accounts Receivable—Chester
Arthur.................................................
Sales Discounts Forfeited ..................

2,940
60

(Note to instructor: Sales discounts forfeited could have been recognized at the time the discount period lapsed. The company, however, would probably not record this forfeiture until final cash settlement.) EXERCISE 7-6 (15-20 minutes)
July 1

July 10

Accounts Receivable .............................
Sales...............................................

20,000

Cash.........................................................
Sales Discounts …show more content…
Finance Charge ($6,000 X 6%) .....................
Notes Payable ......................................
7/11

Accounts Receivable....................................
Sales Discounts Forfeited ..................

5,640
360

Account Receivable—Harding Co...............
Sales Discounts Forfeited ..................
($8,000 – X 2%)

160

180

6,000

160

This entry may be made at the next time financial statements are prepared. Also, it may occur on 12/29 when Harding Company’s receivable is adjusted.
12/29 Allowance for Doubtful Accounts ...............
Accounts Receivable—Harding Co. ..
[$7,840 + $160 = $8,000;
$8,000 – (10% X $8,000) = $7,200]

7-25

7,200
7,200

EXERCISE 7-13 (10-15 minutes)
(a) Cash ..................................................................
Finance Charge ................................................
Notes Payable .........................................

192,000
8,000*
200,000

*2% X $400,000 = $8,000
(b) Cash ..................................................................
Accounts Receivable..............................

350,000

(c) Notes