Question

WileyPLUS het system Announcements Weygandt, Financial Accounting, 10e Help System Announcements CALCULATOR PRINTER VERSION BACK NEXT Comprehensive Accounting Cycle Review 7 (Part Level Submission) On December 1, 2019, Windsor, Inc. had the following account balances. Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Debit $18,500 Accumulated Depreciation Equipment 2,300 Accounts Payable 7,400 Common Stock 16,400 Retained Earnings 1,700 27,700 $74,000 Credit $2,900 6,100 52,100 12,900 $74,000 During December, the company completed the following transactions. Dec. 7 Received $3,700 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $11,900, terms 1/10, n/30. 17 Sold merchandise on account $15,900, terms 2/10, n/30. The cost of the merchandise sold was $9,000. 19 Paid salaries $2,100. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,600 cash from customers in payment of account (no discount allowed) Adjustment data: 1. Depreciation $200 per month. 2. Insurance expired $400. (a)

Answer 1

Date	Account title	Debit	credit
Dec 7	cash	3700
	Accounts receivable		3700
Dec 12	Inventory	11900
	Accounts payable		11900
Dec 17	Accounts receivable	15900
	sales revenue		15900
	[To record sales]
	cost of goods sold	9000
	Inventory		9000
Dec 19	salaries expense	2100
	cash		2100
Dec 22	Accounts payable	11900
	Inventory (11900*1%)		119
	cash		11781
	[Being payment made within discount period of 10 days from date of invoice Dec 12 so discount of 1% is available ]
Dec 26	cash	15582
	sales discount (15900*2%)	318
	Accounts receivable		15900
	[Being payment received within 10days from date of Invoice Dec 17 ,so discount of 2% is given ]
Dec 31	cash	2600
	Accounts receivable		2600