Trial balance was prepared for Tile, Etcetera, Incorporated, on December 3 1 , Year 1 , after
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Question:
Trial balance was prepared for Tile, Etcetera, Incorporated, on December Year after the closing entries were posted.
Account Title Debit Credit
Cash $
Accounts receivable
Allowance for doubtful accounts $
Inventory
Accounts payable
Common stock
Retained earnings
Totals $ $
Tile, Etcetera had the following transactions in Year :
Purchased merchandise on account for $
Sold merchandise that cost $ for $ on account.
Sold for $ cash merchandise that had cost $
Sold merchandise for $ to credit card customers. The merchandise had cost $ The credit card company charges a percent fee.
Collected $ cash from accounts receivable.
Paid $ cash on accounts payable.
Paid $ cash for selling and administrative expenses.
Collected cash for the full amount due from the credit card company see item
Loaned $ to J Parks. The note had an percent interest rate and a oneyear term to maturity.
Wrote off $ of accounts as uncollectible.
Made the following adjusting entries:
a Recorded uncollectible accounts expense estimated at percent of sales on account.
b Recorded seven months of accrued interest on the note at December Year see item
Required
Prepare general journal entries for these transactions, and post the entries to Taccounts. Also, prepare an income statement, a statement of changes in stockholders equity, a balance sheet, and a statement of cash flows for Year
Compute the net realizable value of accounts receivable at December Year
If Tile, Etcetera used the direct writeoff method, what amount of uncollectible accounts expense would it report on the income statement?
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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