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Accounts Payable and Accounts Receivable Questions

2. Please explain how would you record the following Invoices and payment in T accounts:

- Invoice #1: Office supplies from Office Depot $150
- Invoice #2: Interest accrual from loan acquired with Bank of America of $40,000
- Invoice #3: Electricity bill from Reliant Energy $700
- Payment of invoice #1 with a wire transfer
- Reversal of invoice #3

4. What kind of reports are usually run from the accounts payable module? Please select from the following answers:

(A) - Profit and Loss report
(B) - Cash Flow report
(C) - Aging report
(D) - Unpaid Bills
(E) - Balance Sheet
(F) - Other _____________________________

5. Name the 3 accounts that are usually affected while recording accounts payables?

(A) - Bank, accrued liabilities and an income account
(B) - Accrued Liabilities, an expense account and Bank
(C) - Expense account, accounts payable and an income account
(D) - Bank, accounts payables, and an expense account
(E) - Other _________________________________

Accounts Receivable

1. Please record the following entry for a product sold:

Sales $12,450.00
Deposit $ 1,867.50
Financed amount $10,582.50
Monthly payment$ 600.00

2. Please record the cancellation of the sale in the previous question assuming that we kept the deposit:

3. Please record the reserve for bad debt expense of $1,494:

4. Please record the cash loan proceeds of $10,000,000 which includes a $75,000 non refundable good faith deposit.

Solution Summary

In two Excel spreadsheets, the answers are clearly laid out and fully explained.