accounting

Project Description:

the dream kitchen is a small chain of kitchen remodeling stores. the company's year-end trial balance on december 31, 2016, included the information shown below:

accounts receivable $ 990,440
allowance for doubtful accounts (credit) 28,200
________________________________________
net credit sales for 2016, were $8,900,000. allowance for doubtful accounts has not yet been adjusted.

1. at the end of 2016, the following additional accounts receivable are deemed uncollectible:
prepare the december 31, 2016, journal entry to write off the below accounts. of the accounts to be charged off, $17,200 are more than 60 days past due, and $8,310 are from 31 to 60 days past due. post this transaction to the t-accounts for accounts receivable and allowance for doubtful accounts provided in requirement 4.


bob anderson $ 10,800
suzanne bennett 2,180
james o’brian 4,200
omar tirado 5,230
casey wilk 3,100
_______________________________________
total $ 25,510

journal entry worksheet
record the entry to write off account receivable deemed uncollectible.
date general journal debit credit
dec 31, 2016

2. assume that the company uses the percentage of sales method to estimate uncollectible accounts expense. after analyzing the prior year’s activities, management determined that losses from uncollectible accounts for 2016 should be 0.32 percent of net credit sales. prepare the necessary adjusting journal entry.

journal entry worksheet

record the entry to write off account receivable deemed uncollectible.

date general journal debit credit
dec 31, 2016

3. assume that the company uses the aging of accounts receivable method. the following information was furnished by the credit manager for use in calculating the estimated loss from uncollectible accounts. the balances of accounts were computed prior to the charge-offs in requirement 1.

receivable category estimated loss rate balances of accounts (before charge-offs)
current 1 % $ 810,000
1–30 days past due 5 % 90,000
31–60 days past due 10 % 49,400
over 60 days past due 40 % 41,040
________________________________________
total $ 990,440
compute the estimated uncollectible accounts as of december 31, 2016, rounded to the nearest dollar.
over 60 days past due ______ 31-60 days past due ______
current _____ total estimated uncollectible accounts $_________

4. prepare the necessary adjusting journal entry to record the estimated uncollectible accounts expense on december 31, using the aging method. post this entry to the t-accounts for accounts receivable and allowance for doubtful accounts.

journal entry worksheet
record the entry to write off account receivable deemed uncollectible.
date general journal debit credit
dec 31, 2016


allowance for doubtful accounts
12-31 change off ______ _______ 12-31 beginning balance
______ _______ 12-31 adjustment
______ _______ 12-31 final balance

accounts receivable
12-31 beginning balance _____ _____ 12-31 change off
_____ _____
12-31 final balance
Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: $10 to $20
Refunded
Total Proposals: 3
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