Question

X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted...

X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $45,000 increase in Cash and a $45,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company

sold merchandise to customers on account for $45,000.
received $45,000 from a customer who had previously bought merchandise on account.
paid $45,000 to a supplier from whom the firm had previously bought merchandise on account.
received $45,000 from a customer who bought merchandise with cash.
received $45,000 from a new investor.
borrowed $45,000 from a bank and signed a note.

Homework Answers

Answer #1

Answer- The following transactions is consistent with this entry for X company = received $45,000 from a customer who had previously bought merchandise on account.

Explanation- X company received cash from customer to whom previosly X company sold the merchandise on account. The following journal entry take place foe such transaction-

Transaction ACCOUNTS TITLES & EXPLANATION DEBIT CREDIT
$ $
1 Cash 45000
Accounts Receivable 45000
(Being entry recorded for cash received from customer )
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $51,000 increase in Cash and a $51,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company received $51,000 from a new investor. borrowed $51,000 from a bank and signed a note. received $51,000 from a customer who had previously bought merchandise on account. sold merchandise to customers on account for $51,000. received $51,000 from a...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $42,000 increase in Cash and a $42,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company borrowed $42,000 from a bank and signed a note. received $42,000 from a customer who bought merchandise with cash. paid $42,000 to a supplier from whom the firm had previously bought merchandise on account. received $42,000 from a customer...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $42,000 increase in Cash and a $42,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company A. received $42,000 from a customer who bought merchandise with cash. B. received $42,000 from a customer who had previously bought merchandise on account. C. sold merchandise to customers on account for $42,000. D. paid $42,000 to a supplier...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted...
X Company prepares monthly financial statements. On September 6, its accountant made an entry that resulted in a $42,000 increase in Cash and a $42,000 decrease in Accounts Receivable. Which of the following transactions is consistent with this entry? X Company a. received $42,000 from a new investor. b. paid $42,000 to a supplier from whom the firm had previously bought merchandise on account. c. borrowed $42,000 from a bank and signed a note. d. sold merchandise to customers on...
X Company was created on September 1 and prepares monthly financial statements. During September, X Company...
X Company was created on September 1 and prepares monthly financial statements. During September, X Company issued stock to investors for $86,000, borrowed $81,000 from a bank, bought merchandise that it planned to sell, paying $3,078 and promising to pay $5,355 in October, bought equipment, paying $5,900 and promising to pay $4,300 in December, paid $3,548 that it had promised to pay to suppliers for previous purchases on account, sold merchandise, receiving cash of $15,496 and promises to pay from...
X Company was created on September 1 and prepares monthly financial statements. During September, X Company...
X Company was created on September 1 and prepares monthly financial statements. During September, X Company issued stock to investors for $86,000, borrowed $100,000 from a bank, bought merchandise that it planned to sell, paying $3,557 and promising to pay $4,926 in October, bought equipment, paying $5,900 and promising to pay $4,300 in December, paid $3,606 that it had promised to pay to suppliers for previous purchases on account, sold merchandise, receiving cash of $17,047 and promises to pay from...
X Company started business on June 1 and prepares monthly financial statements. The following were June...
X Company started business on June 1 and prepares monthly financial statements. The following were June transactions: received $49,000 from a group of investors bought $8,339 of merchandise, $3,466 for cash and $4,873 on account sales were $42,000, of which $37,965 were for cash and $4,035 were on account; Cost of Goods Sold was $23,100 paid $3,374 to suppliers for merchandise previously bought on account collected $2,590 from customers on account paid expenses totalling $9,792 4. What were total assets...
X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the...
X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the appropriate adjusting entries on October 31: On October 1, the company paid rent for the final three months of the year. Rent was $1,225 per month. On October 1, the company purchased equipment that cost $10,000, borrowing the full amount from a bank. The equipment has a life of three years and a salvage value at that time of $1,000. The company will repay...
X Company prepares monthly financial statements. In January, it purchased inventory on account. The accountant recorded...
X Company prepares monthly financial statements. In January, it purchased inventory on account. The accountant recorded the transaction as an increase in Inventories and an increase in Retained Earnings. As a result, which of the following is true regarding the January financial statements? Retained Earnings was understated. Revenue was understated. Accounts Payable was understated. Expenses were understated. Accounts Receivable was overstated. Inventories were understated.
X Company prepares monthly financial statements. In January, it purchased inventory on account. The accountant recorded...
X Company prepares monthly financial statements. In January, it purchased inventory on account. The accountant recorded the transaction as an increase in Inventories and an increase in Retained Earnings. As a result, which of the following is true regarding the January financial statements? - Inventories were understated. - Retained Earnings was understated. -Revenue was understated. - Expenses were understated. - Accounts Receivable was overstated. - Accounts Payable was understated.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT