Bradshaw Company Has a Balance in Its Accounts Receivable Control

question 114

Essay

Bradshaw Company has a balance in its Accounts Receivable control account of $13,000 on January 1, 2020. The subsidiary ledger contains three accounts: Brown Company, balance $6,000; Smith Company, balance $2,500 and Coco's Company. During January, the following receivable-related transactions occurred. $\begin{array}{lrrr}&\text { Credit Sales}&\text {Collections }&\text {Returns }\\\hline\text { Brown Company } & \$ 15,000 & \$ 8,000 & \$-0- \\\text { Smith Company } & 9,000 & 4,500 & 1,000 \\\text { Coco's Company } & 8,500 & 6,500 & -0-\end{array}$ Instructions
(a) What is the January 1 balance in the Coco's Company subsidiary account?
(b) What is the January 31 balance in the control account?
(c) Compute the balances in the subsidiary accounts at the end of the month.
(d) Which January transaction would not be recorded in a special journal?

Comprehend the challenges and strategies in managing assets for international companies.

Understand the concept of financial leverage and its effects on a company's financial flexibility and shareholder return.

Recognize the importance of financial planning, control, and the forecasting process in corporate finance.

Understand the financial instruments and strategies used by companies for raising funds and returning profits to shareholders.

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Definitions:

NREM Sleep

A phase of sleep characterized by non-rapid eye movement, consisting of stages 1-3, each deeper than the last, and associated with physical and mental restoration.

REM Sleep

A unique phase of sleep characterized by rapid eye movements, low muscle tone, and vivid dreams, playing a key role in emotional regulation and memory.

Vivid Dreams

Highly detailed, clear, and sometimes intensely emotional dreams that are remembered upon awakening.

Pain Receptors

Specialized nerve endings that transmit pain signals to the brain when the body experiences harmful stimuli.