Mellisa Corp. had the following events during its final three months of the fiscal year ending...

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Mellisa Corp. had the following events during its final three months of the fiscal year ending on May 31, 2022. (a) March 28: Sold $1,600 of merchandise to Matthew Inc. on account. (b) March 29: (c) April 3: (d) April 6: (e) April 14: (f) April 25: (g) May 30: Matthew Inc. returned $300 of the merchandise purchased on March 28. Sold $4,800 of merchandise to Kenzi Inc. Matthew Inc. paid off all his purchase (including those made in the past). Wrote-off an old account for $3,000 which is related to sales made prior to March 1, 2022. Molly Ltd. purchased $12,000 of merchandise, paid half in cash Mellisa Corp. recovered $ 1,000 from the receivables that were written off on April 14. Additional information: Credit terms: 2/10, n/30 Matthew Inc. has a balance of $1,000 outstanding as of March 1, 2022, from purchases made on January 10, 2022. Mellisa Corp. records show the following account balances as of March 1, 2022: Accounts Receivables Allowance for Doubtful Accounts (credit balance)....... Net Credit Sales.. Cash Sales $17,000 1,000 191,000 100,000 Required: 1. Prepare the journal entries to record the above transactions. 2. Mellisa Corp. uses the Aging of Accounts Receivables method to determine the amount of receivables that may not be collected in the future according to the following schedule: Estimated Uncollectible Rate Not yet Due.... 1-30 days past due..... 31-60 days past due....... More than 60 days overdue 5% 10% 15% 20% Determine the amount of receivables that may not be collected in the future, and prepare the journal entry to record the bad debt expenses on May 31, 2022. Show all your calculations. 3. Suppose Thompson uses the Percentage of Credit Sales method to estimate bad debts, using a bad debt rate of 1%. Would Mellisa Corp. incur a higher or lower bad debt expense for the fiscal year ending on May 31, 2022? Show your calculations. Mellisa Corp. had the following events during its final three months of the fiscal year ending on May 31, 2022. (a) March 28: Sold $1,600 of merchandise to Matthew Inc. on account. (b) March 29: (c) April 3: (d) April 6: (e) April 14: (f) April 25: (g) May 30: Matthew Inc. returned $300 of the merchandise purchased on March 28. Sold $4,800 of merchandise to Kenzi Inc. Matthew Inc. paid off all his purchase (including those made in the past). Wrote-off an old account for $3,000 which is related to sales made prior to March 1, 2022. Molly Ltd. purchased $12,000 of merchandise, paid half in cash Mellisa Corp. recovered $ 1,000 from the receivables that were written off on April 14. Additional information: Credit terms: 2/10, n/30 Matthew Inc. has a balance of $1,000 outstanding as of March 1, 2022, from purchases made on January 10, 2022. Mellisa Corp. records show the following account balances as of March 1, 2022: Accounts Receivables Allowance for Doubtful Accounts (credit balance)....... Net Credit Sales.. Cash Sales $17,000 1,000 191,000 100,000 Required: 1. Prepare the journal entries to record the above transactions. 2. Mellisa Corp. uses the Aging of Accounts Receivables method to determine the amount of receivables that may not be collected in the future according to the following schedule: Estimated Uncollectible Rate Not yet Due.... 1-30 days past due..... 31-60 days past due....... More than 60 days overdue 5% 10% 15% 20% Determine the amount of receivables that may not be collected in the future, and prepare the journal entry to record the bad debt expenses on May 31, 2022. Show all your calculations. 3. Suppose Thompson uses the Percentage of Credit Sales method to estimate bad debts, using a bad debt rate of 1%. Would Mellisa Corp. incur a higher or lower bad debt expense for the fiscal year ending on May 31, 2022? Show your calculations.

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answer Journal Entries a March 28AccountsReceivable1600AccountsReceivable1600SalesRevenue1600SalesRe... View the full answer