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
Sale Under Periodic Method
DR: Cash
CR: Sales
Sale Under Perpetual Method
DR: Cash
CR: Sales
DR: COGS
CR: Inventory
Purchase Under Periodic Method
DR: Purchases
CR: Cash
Purchase Under Perpetual Method
DR: Inventory
CR: Cash
Estimated Loss on Firm Purchase Committment
DR: Estimated Loss on Purchase Commitment
CR: Estimated Liability on Purchase Commitment
Donated Fixed Asset
DR: Fixed Asset [FMV]
CR: Gain on Nonreciprocal Transfer
Additions to Fixed Asset
DR: Asset
CR: Cash/Accounts Payable
Improvement/Repacement when Carrying Value of Old Asset is Unknown
DR: Accumulated Depreciation [cost of improvement]
CR: Cash/Accounts Payable
Disposal of One Asset in a Group
DR: Cash
DR: Accumulated Depreciation
CR: Asset [BV]
Because no loss is recognized when just one asset is retired
Sale of Asset During Its Useful Life
DR: Cash DR: Accumulated Depreciation [eliminate] CR: Asset [Cost] CR: Gain (if any) DR: Loss (if any)
Write-Off Fully Depreciated Asset
DR: Accumulated Depreciation
CR: Old Asset [Cost]
Total and Permanent Impairment
DR: Accumulated Depreciation
DR: Loss Due to Impairment
CR: Asset [Cost]
Discount Note Receivable With Recourse
DR: Cash
CR: Note Receivable Discounted
