Chapter 4 Journal Entries Flashcards
Reclassification of Short-Term Debt as Long-Term Debt
DR: Short-Term Liability
CR: Long-Term Liability
Sales on Credit - Net Method
DR: Accounts Receivable [after discount]
CR: Sales
Sales on Credit - Gross Method
DR: Accounts Receivable [gross]
CR: Sales
Receipt of Payment Within Discount Period - Net Method
DR: Cash
CR: Accounts Receivable
Receipt of Payment Within Discount Period - Gross Method
DR: Cash
DR: Sales Discounts Taken (contra revenue)
CR: Accounts Receivable
Receipt of Payment Outside of Discount Period - Net Method
DR: Cash
CR: Accounts Receivable
CR: Sales Discounts Not Taken (additional rev)
Receipt of Payment Outside of Discount Period - Gross Method
DR: Cash
CR: Accounts Receivable
Sales Return
DR: Sales Returns and Allowances (contra sales)
CR: Accounts Receivable
Direct Write-Off of Uncollectible Accounts
DR: Bad Debt Expense
CR: Accounts Receivable
Allowance Method for Uncollectible Accounts
DR: Bad Debt Expense
CR: Allowance for Uncollectible Accounts
Allowance Method: Writing Off a Receivable
DR: Allowance for Uncollectible Accounts
CR: Accounts Receivable
Subsequent Collection of A/R Previously Written Off from Direct Write-Off Method
DR: Cash
CR: Uncollectible Accounts Recovered (rev)
Subsequent Collection of A/R Previously Written Off from Allowance Method
DR: Accounts Receivable
CR: Allowance for Uncollectible Accounts
DR: Cash
CR: Accounts Receivable
Factor A/R Without Recourse
DR: Cash
DR: Due from Factor [factor’s margin]
DR: Loss on Sale of Receivable
CR: Accounts Receivable
Write-Down of Inventory
DR: Inventory Loss Due to Decline in Market Value
CR: Inventory
