No Date General Journal Debit Credit 1 April 10 No journal entry required 2 April 30...
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No Date General Journal Debit Credit 1 April 10 No journal entry required 2 April 30 Accounts receivable Sales revenue 270,000 270,000 3 May 01 Accounts receivable Sales revenue 4 May 05 Cash Accounts receivable 5 May 07 Accounts receivable Sales revenue 216,000 216,000 270,000 270,000 36,000 36,000 6 May 10 Allowance for doubtful accounts 13,600 Accounts receivable 13,600 i 7 May 10 Cash Accounts receivable 8 June 30 Accounts receivable Allowance for doubtful accounts 9 June 30 Cash Accounts receivable 216,000 216,000 3,800 3,800 3,800 3,800 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimated uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) Analysis of Aged Accounts Receivable Not yet due 5% 1-30 days past due 10% 31-60 days Over 60 days past due past due 15% 20% Estimated % uncollectible a. Determine the amount of receivables that may not be collectible in the future as on June 30 of the current year. Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30 of the current year, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 June 30 Bad debt expense Allowance for doubtful accounts Debit Credit 3. IceKreme's net accounts receivable were $96,000 at June 30 of the prior year. Calculate IceKreme's average collection period for the current fiscal year. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days 4. This part of the question is not part of your Connect assignment. No Date General Journal Debit Credit 1 April 10 No journal entry required 2 April 30 Accounts receivable Sales revenue 270,000 270,000 3 May 01 Accounts receivable Sales revenue 4 May 05 Cash Accounts receivable 5 May 07 Accounts receivable Sales revenue 216,000 216,000 270,000 270,000 36,000 36,000 6 May 10 Allowance for doubtful accounts 13,600 Accounts receivable 13,600 i 7 May 10 Cash Accounts receivable 8 June 30 Accounts receivable Allowance for doubtful accounts 9 June 30 Cash Accounts receivable 216,000 216,000 3,800 3,800 3,800 3,800 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimated uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) Analysis of Aged Accounts Receivable Not yet due 5% 1-30 days past due 10% 31-60 days Over 60 days past due past due 15% 20% Estimated % uncollectible a. Determine the amount of receivables that may not be collectible in the future as on June 30 of the current year. Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30 of the current year, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal 1 June 30 Bad debt expense Allowance for doubtful accounts Debit Credit 3. IceKreme's net accounts receivable were $96,000 at June 30 of the prior year. Calculate IceKreme's average collection period for the current fiscal year. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days 4. This part of the question is not part of your Connect assignment.
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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