1. Djokovic Co. had the following balances at December 31. Accounts receivable Sales discounts Sales revenue...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Djokovic Co. had the following balances at December 31. Accounts receivable Sales discounts Sales revenue Allowance for doubtful accounts Sales returns and allowances Required: Prepare the adjusting entry to record bad debt expense assuming: a. The company estimates that 6% of net sales is uncollectible. b. The company estimates that 5% of accounts receivable is uncollectible. $240,000 2,000 335,000 2,000 (cr.) 10,000 c. Calculate the ending balance of AFDA under both assumptions above (show all work). 2. Monica Seles operates a sushi restaurant in downtown Miami. The company recently reported the following information concerning the Allowance for Doubtful Accounts on its Balance Sheet at the end of each of the following years. Beginning (in thousands) Balance Estimated Bad Debt Expense Actual Account Write-Offs Ending Balance 2019 $120 $? $5 $162 2020 162 185 ? 90 2021 90 20 18 92 Required: a. b. C. Use a t-account to compute the missing amounts for 2019. Label all amounts. Use a t-account to compute the missing amounts for 2020. Label all amounts. Record the journal entries to record the transactions for 2021. 3. Agassi Co. sells chocolate candy in California. On January 1, 2019, the company had $17,000 in Accounts Receivable and $1,400 (cr.) in the Allowance for Doubtful Account (AFDA). During 2019, the company had sales revenue of $160,000, of which $70,000 was on credit. Collections of accounts receivable during the year were $58,000. Prior to year-end, the company wrote off an account receivable for $1,300. Required: a. Open t-accounts for Accounts Receivable and AFDA and enter the beginning balances. b. Prepare journal entries for the transactions during 2019 and post to the above accounts. c. On December 31, the company estimated bad debts based on 2% of credit sales for the year. Prepare the necessary adjusting entry at year end and post to the above accounts. d. Assume instead the company uses the percentage of accounts receivable approach and estimates bad debts at 4% of the balance of accounts receivable at year-end. Prepare the necessary adjusting entry at year end and post to the above accounts (use new t-accounts). e. Given your entries in d. above, what amount of accounts receivable does the company expect to collect? See next page for problem 4. 4. The latest annual report for Coors Beverages, Inc. included the following information: Accounts Receivable Less: Allowance for doubtful accounts Net accounts receivable Net credit sales Required: 2021 $881,500 6,780 874,720 2020 $903,000 9,010 893,990 $4,377,000 1. What is the 2021 receivables turnover ratio? What does it say about the company? 2. What is the 2021 average collection period for receivables? What does it say about the company? 1. Djokovic Co. had the following balances at December 31. Accounts receivable Sales discounts Sales revenue Allowance for doubtful accounts Sales returns and allowances Required: Prepare the adjusting entry to record bad debt expense assuming: a. The company estimates that 6% of net sales is uncollectible. b. The company estimates that 5% of accounts receivable is uncollectible. $240,000 2,000 335,000 2,000 (cr.) 10,000 c. Calculate the ending balance of AFDA under both assumptions above (show all work). 2. Monica Seles operates a sushi restaurant in downtown Miami. The company recently reported the following information concerning the Allowance for Doubtful Accounts on its Balance Sheet at the end of each of the following years. Beginning (in thousands) Balance Estimated Bad Debt Expense Actual Account Write-Offs Ending Balance 2019 $120 $? $5 $162 2020 162 185 ? 90 2021 90 20 18 92 Required: a. b. C. Use a t-account to compute the missing amounts for 2019. Label all amounts. Use a t-account to compute the missing amounts for 2020. Label all amounts. Record the journal entries to record the transactions for 2021. 3. Agassi Co. sells chocolate candy in California. On January 1, 2019, the company had $17,000 in Accounts Receivable and $1,400 (cr.) in the Allowance for Doubtful Account (AFDA). During 2019, the company had sales revenue of $160,000, of which $70,000 was on credit. Collections of accounts receivable during the year were $58,000. Prior to year-end, the company wrote off an account receivable for $1,300. Required: a. Open t-accounts for Accounts Receivable and AFDA and enter the beginning balances. b. Prepare journal entries for the transactions during 2019 and post to the above accounts. c. On December 31, the company estimated bad debts based on 2% of credit sales for the year. Prepare the necessary adjusting entry at year end and post to the above accounts. d. Assume instead the company uses the percentage of accounts receivable approach and estimates bad debts at 4% of the balance of accounts receivable at year-end. Prepare the necessary adjusting entry at year end and post to the above accounts (use new t-accounts). e. Given your entries in d. above, what amount of accounts receivable does the company expect to collect? See next page for problem 4. 4. The latest annual report for Coors Beverages, Inc. included the following information: Accounts Receivable Less: Allowance for doubtful accounts Net accounts receivable Net credit sales Required: 2021 $881,500 6,780 874,720 2020 $903,000 9,010 893,990 $4,377,000 1. What is the 2021 receivables turnover ratio? What does it say about the company? 2. What is the 2021 average collection period for receivables? What does it say about the company?
Expert Answer:
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
Posted Date:
Students also viewed these accounting questions
-
General Hospital provides private healthcare and currently offers three operations: feet, shoulder and hip and the following data is available for them: Operations Patient Fee per operation Number of...
-
AIM 3.1: Write java Program for single level inheritance
-
Please create an IMC (integrated marketing communication) on Pratt&Whitney, mainly on in-person promotion/personal selling, events/meetings it attended(exhibition, military expo, exchange meetings...
-
From an operations management point of view, what are the major advantages and what are the major problems likely to result from each of the technologies described above?
-
The following atomic absorption results were obtained for determinations of Zn in multivitamin tablets. All absorbance values are corrected for the appropriate reagent blank (c Zn = 0.0 ng/mL). The...
-
According to the Supreme Court decision in Quill Corp. v. North Dakota, a state may not require a retailer with no physical presence in the state to collect and remit sales tax on sales made in the...
-
A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. Given that the retailer is an important customer, suppliers allow the firm...
-
The population of a colony of bacteria grows according the formula P(t) = 4(1.40) 24 where: P represents the population t represents time in hours How long, to the nearest hour, does it take the...
-
Describe how your chosen company embraces (i.e. displays characteristics and evidence of) a "participative leadership culture". Provide some plausible explanation as to WHY your chosen company is...
-
Jason has a share portfolio of: Argo BHP Woolworths Wesfarmers CBA He has been doing some research on these stocks and has discovered the following information: Forecast returns are: Argo BHP (a) (b)...
-
What are spending plans largely based on? brief.
-
You are a Family Nurse Practitioner employed in a busy primary care office. The providers in the group include one physician and three nurse practitioners. The back office staff includes eight...
-
on 3 mplete d out of question Write a C program to print the below pattern for N rows @@@@ & & & @ @
-
"Read the case "British Satellite Broadcasting versus Sky Television." Assume you are a consultant to British Satellite Broadcasting in 1990 (ie: at the end of the case). Prepare a write up advising...
-
Suppose Beth earns $500 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to have breakfast at Dinah's Diner. Dinah's Diner pays Andrew $375 per week to work as a...
-
Write a paper by answer the following question: Should Recycling Be Mandatory?
-
Why must the adjusting entries be journalized and posted if they have already been entered on the worksheet?
-
1. Supply the missing income statement amounts for each of the following companies for the year ended December 31, 2017: 2. Prepare the income statement for Bell Co., which uses the periodic...
-
Brad Jackson works for a Bob's Burgers takeout for straight-time earnings of $10.50 per hour with time and a half for hours in excess of 35 per week. Jackson's payroll deductions include income tax...
-
True or False: Engineers seldom have an opportunity to influence the recovery period for expenditures.
-
A lumber company purchases and installs a wood chipper for \(\$ 200,000\). The chipper is classified as MACRS 7-year property. Its useful life is 10 years. The estimated salvage value at the end of...
-
True or False: Straight-line depreciation is the most popular depreciation method used in financial reporting.
Study smarter with the SolutionInn App