Maple Supply Company, on December 20, 2022, had a credit balance of $1,700 in its Allowance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Maple Supply Company, on December 20, 2022, had a credit balance of $1,700 in its Allowance for Doubtful Accounts ledger account. On December 23, they decided that the account receivable for Hardy Corp. of $2,400 would never be paid, and they wrote it off. On December 31, Maple Supply Company aged their accounts receivable according to the following: Estimated Percentage Uncollectible Current Accounts $160,000 1% 1-30 days past due 20,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable $203,000 Required Complete the following with the details provided. A. Prepare the December 23 journal entry. (4 marks) B. Prepare the December 31, year-end adjusting entry for bad debts using the ageing of receivables method. (10 marks) C. Assume that Maple Supply Company uses the Income Statement approach. Net credit sales are $1,500,000. They believe that 0.5% of the sales will become bad debts. The Allowance for Doubtful Accounts account had the same balances and entries as in the December 23 journal entry. Prepare the adjusting entry for the current year's provision for uncollectible accounts. Show supporting calculations. (6 marks) Maple Supply Company, on December 20, 2022, had a credit balance of $1,700 in its Allowance for Doubtful Accounts ledger account. On December 23, they decided that the account receivable for Hardy Corp. of $2,400 would never be paid, and they wrote it off. On December 31, Maple Supply Company aged their accounts receivable according to the following: Estimated Percentage Uncollectible Current Accounts $160,000 1% 1-30 days past due 20,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable $203,000 Required Complete the following with the details provided. A. Prepare the December 23 journal entry. (4 marks) B. Prepare the December 31, year-end adjusting entry for bad debts using the ageing of receivables method. (10 marks) C. Assume that Maple Supply Company uses the Income Statement approach. Net credit sales are $1,500,000. They believe that 0.5% of the sales will become bad debts. The Allowance for Doubtful Accounts account had the same balances and entries as in the December 23 journal entry. Prepare the adjusting entry for the current year's provision for uncollectible accounts. Show supporting calculations. (6 marks)
Expert Answer:
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
1.Which of the following below is NOT an element of internal control? a. risk assesment b. monitoring c. information and communication d. behavior analysis ANSWER:D 2. Which of the following below is...
-
Wildcat Sporting Goods (WSG) sells athletic shoes and trendy sports apparel to a variety of sporting goods stores in the Northeast and, in 2011, WSG also began direct Internet sales to consumers....
-
Assuming 250 days of operation per year and a lead time of five days, what is the reorder point for Westside Auto in Problem 15? Show the general formula for the reorder point for the EOQ model with...
-
A donor made his first taxable gift in 1979 and his second taxable gift in the current year. In the intervening years, the highest gift tax rates declined. In calculating the tax on taxable gifts of...
-
A U.S. synthetic rubber manufacturer is considering moving its production to a Japanese plant. Its estimated production function is q = 10L 0.5 K 0.5 (Flath, 2011). In the United States, w = 10 = r....
-
Find the natural frequencies of a beam of length \(l\), which is pin connected at \(x=0\) and fixed at \(x=l\), using one beam element.
-
Turner, Inc. began work on a $7,000,000 contract in 2012 to construct an office building. During 2012, Turner, Inc. incurred costs of $1,700,000, billed its customers for $1,200,000, and collected...
-
Computing the Predetermined Overhead Rate [LO3 - CC5] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labour-hours. At the beginning of the year, it estimated...
-
To improve its competitive position Martin Manufacturing is planning to implement a major equipment modernization program Included will be replacement and modernization of key manufacturing equipment...
-
Lexon Inc. is a large manufacturer of affordable DVD players. Management recently became aware of rising expenses resulting from returns of malfunctioning products. As a starting point for further...
-
Suppose you have been elected to Congress. One day, one of your colleagues makes the following statement: The Fed chair is the most powerful economic policy maker in the United States. We should not...
-
GDP in 2009 was roughly $15,000 billion. In 2009, GDP fell by approximately 3 percentage points in 2009. a. How many billion dollars is 3 percentage points of $15,000 billion? b. If the propensity to...
-
Why is the effect of a lockdown different from that of an oil shock? There is an important difference between a lockdown and an oil shock. Although a lockdown is typically temporary, not all firms...
-
Go to the website for the Federal Reserve Board of Governors (www.federalreserve.gov) and download the most recent monetary policy press release of the Federal Open Market Committee (FOMC), the body...
-
All of the following refer to bolts with a mean length of 5.0 inches and standard deviation of 0.1 inches. Note: The standard deviation throughout this problem is 1/10 of an inch, not one inch. A)...
-
Dan and Diana file a joint return. Dan earned $31,000 during the year before losing his job. Diana received Social Security benefits of $5,000. a. Determine the taxable portion of the Social Security...
-
What are the four bases for determining employee gross earnings?
-
Record the following transactions of Fashion Designs in a general journal: DATE TRANSACTIONS 2016 April 2 Sold merchandise for cash, $1,500 plus sales tax. 3 The customer purchasing merchandise for...
-
Teagan Fitzgerald is the owner of Newport Jewelry, a store specializing in gold, platinum, and special stones. During the past year, in response to increased demand, Teagan doubled her selling space...
-
The following are methods used to evaluate public health data and scientifc evidence except a. Use of standard criteria by experts b. By combining the results of multiple scientifc studies that are...
-
Which industrial transducer does not require a power supply (selfgenerated signal)?
-
Nordson Co. of Amherst, Ohio, a maker of painting and glue equipment, exports nearly half its output. Customers value its reliability as a supplier. Because of an especially sharp run up in the value...
Study smarter with the SolutionInn App