completed with numbers, journal entry, fill blank and explanation ACC 211 Challenge #5 ACCOUNTING FOR RECEIVABLES Instructions:

completed with numbers, journal entry, fill blank and explanation

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ACC 211 Challenge #5 ACCOUNTING FOR RECEIVABLES Instructions: For Compass Corporation and its fiscal year ended December 31, 2014: 1. Using the following journal and the data provided below in A), B), and C), prepare the necessary adjusting journal entries. Please include appropriate dates and explanations for each entry. 2. Using the attached T-accounts for the ledger, post only the adjusting journal entries that you prepared below for adjustments A) and C). (NOTE: DO NOT POST JOURNAL ENTRY B)!!!!!) 3. Once the ledger account balances are updated, prepare updated financial statements. 4. Answer questions a-f. Adjusting Journal Entry Information: A) Using the information in the analysis of A/R below, prepare the adjusting journal entry to record the estimate of uncollectible receivables, using the analysis of receivables method. (T-account is provided to assist you in your calculations, the official ledger is on the following page.) Compass Corporation Analysis of Accounts Receivable Method For the Year Ended December 31, 2014 Total Percent Amount Uncollectible A/R Aged Category Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Total 40,000 17,250 10,100 5,000 2,500 74,850 Name 2% 4% 10% 35% 50% Compass Corporation Net Credit Sales Method For the Year Ended December 31, 2014 Information regarding sales for year ended December 31, 2014: Net credit sales for the year 630,000 Estimated % of uncollectible sales 0.75% Estimated bad debts at 12/31/2014 Dollars Uncollectible 10/2/2014 120 Allowance for Doubtful Accounts B) Using the information in the % of sales analysis below, prepare the adjusting journal entry to record the estimate of bad debts, using the percentage of sales method. (T-accounts is provided to assist you in your calculations, the official ledger is on the following page.) 1,200 Unadj.Bal Allowance for Doubtful Accounts C) Prepare the adjusting journal entry to record the accrual of interest as of 12/31/2014 for Note Receivable #1 based on the following information: Issued date of note = Term of note, in days = HI Face amount of note= Annual interest rate= IL 1,200 Unadj.Bal $40,000 6% 95 ACC 211 Challenge #5 ACCOUNTING FOR RECEIVABLES Instructions: For Compass Corporation and its fiscal year ended December 31, 2014: 1. Using the following journal and the data provided below in A), B), and C), prepare the necessary adjusting journal entries. Please include appropriate dates and explanations for each entry. 2. Using the attached T-accounts for the ledger, post only the adjusting journal entries that you prepared below for adjustments A) and C). (NOTE: DO NOT POST JOURNAL ENTRY B)!!!!!) 3. Once the ledger account balances are updated, prepare updated financial statements. 4. Answer questions a-f. Adjusting Journal Entry Information: A) Using the information in the analysis of A/R below, prepare the adjusting journal entry to record the estimate of uncollectible receivables, using the analysis of receivables method. (T-account is provided to assist you in your calculations, the official ledger is on the following page.) Compass Corporation Analysis of Accounts Receivable Method For the Year Ended December 31, 2014 Total Percent Amount Uncollectible A/R Aged Category Not Past Due 1-30 Days Past Due 31-60 Days Past Due 61-90 Days Past Due Over 90 Days Past Due Total 40,000 17,250 10,100 5,000 2,500 74,850 Name 2% 4% 10% 35% 50% Compass Corporation Net Credit Sales Method For the Year Ended December 31, 2014 Information regarding sales for year ended December 31, 2014: Net credit sales for the year 630,000 Estimated % of uncollectible sales 0.75% Estimated bad debts at 12/31/2014 Dollars Uncollectible 10/2/2014 120 Allowance for Doubtful Accounts B) Using the information in the % of sales analysis below, prepare the adjusting journal entry to record the estimate of bad debts, using the percentage of sales method. (T-accounts is provided to assist you in your calculations, the official ledger is on the following page.) 1,200 Unadj.Bal Allowance for Doubtful Accounts C) Prepare the adjusting journal entry to record the accrual of interest as of 12/31/2014 for Note Receivable #1 based on the following information: Issued date of note = Term of note, in days = HI Face amount of note= Annual interest rate= IL 1,200 Unadj.Bal $40,000 6% 95

Answer rating: 100% (QA)

To properly assist you lets address each of the tasks outlined in the instructions as it pertains to the journal entries and financial statement adjustments Adjusting Journal Entry for A Allowance for ... View the full answer