On July 31,Orwell Co.has $448,800 of accounts receivable.
Required:
1.Prepare journal entries to record the following selected August transactions.The company uses the perpetual inventory system.
2.Explain what should be included in the footnotes to the August 31 financial statements as a result of these transactions.
3.Calculate the balance in the Accounts Receivable account as of August 10.

Question

On July 31,Orwell Co.has $448,800 of accounts receivable.
Required:
1.Prepare journal entries to record the following selected August transactions.The company uses the perpetual inventory system.
2.Explain what should be included in the footnotes to the August 31 financial statements as a result of these transactions.
3.Calculate the balance in the Accounts Receivable account as of August 10.
On July 31,Orwell Co.has $448,800 of accounts receivable. Required: 1.Prepare journal entries to record the following selected August transactions.The company uses the perpetual inventory system. 2.Explain what should be included in the footnotes to the August 31 financial statements as a result of these transactions. 3.Calculate the balance in the Accounts Receivable account as of August 10.

Maryam Vahdati · Accepted Answer

Final Answer :

1.

1. 2.Orwell should include the following note with its statements: Accounts receivable of $65,000 are pledged as security for a $50,000 note payable. 3.Accounts receivable balance: $233,600 (448,800 + 250,000 - 300,000 - 165,200)

2.Orwell should include the following note with its statements:
Accounts receivable of $65,000 are pledged as security for a $50,000 note payable.
3.Accounts receivable balance: $233,600 (448,800 + 250,000 - 300,000 - 165,200)

Definitions

Learning Objectives

Learning Objectives

Related questions