| | | $47,900. The following information is taken from Reagan Company's December 31 balance sheet: | Cash and cash equivalents | $ | 10,019 | | Accounts receivable | | 78,422 | | Merchandise inventories | | 68,362 | | Prepaid expenses | | 5700 | | Accounts payable | $ | 16,550 | | Notes payable | | 94,638 | | Other current liabilities | | 11,100 | If net sales for the current year were $603,500, the firm's days' sales uncollected for the year is: (Use 365 days a year.) | | | 47.4 days | | | | 41.3 days | | | | 69.5 days | | | | 159.4 days | | | | 79.7 days | Q23 On April 12, Hong Company agrees to accept a 60-day, 10%, $5400 note from Indigo Company to extend the due date on an overdue accounts payable. What is the journal entry needed to record the transaction by Indigo Company? | | | Debit Accounts Receivable $5400; credit Notes Payable $5400. | | | | Debit Cash $5400; credit Notes Payable $5400. | | | | Debit Notes Payable $5400; credit Accounts Payable $5400. | | | | Debit Sales $5400; credit Notes Payable $5400. | | | | Debit Accounts Payable $5400; credit Notes Payable $5400. | A company had net sales of $30,300 and ending accounts receivable of $3900 for the current period. Its days' sales uncollected equals: (Use 365 days a year.) | | | 38.98 days. | | | | 46.98 days. | | | | 7.77 days. | | | | 62.28 days. | | | | 58.18 days. | Athena Company provides employee health insurance that costs $14,100 per month. In addition, the company contributes an amount equal to 4% of the employees' $141,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a: | | | Debit to Employee Benefits Expense $19,740. | | | | Debit to Employee Retirement Program Payable $5640. | | | | Debit to Medical Insurance Payable $14,100. | | | | Credit to Employee Benefits Expense $14,100. | | | | Debit to Payroll Taxes Expense $19,740. | |
