Brightley Services Inc. started business on March 1, 2020.The company produces monthly financial statements and had total
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Brightley Services Inc. started business on March 1, 2020.The company produces monthly financial statements and had total sales of $630,000 (of which $598,500 were on account) during the first four months. On June 30, the Accounts Receivable account had a balance of $212,700 (no accounts have been written off to date), which was made up of the following accounts aged according to the date the services were provided:
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Customer Torrance Trucks Vaccaro Inc. Lester Vert Mick Blues Other Accounts Receivable Month of Service: April May March $ 3,000 $ 1,450 $ 2,100 $ 1,700 1,500 1,150 1,650 4,344 7,000 5,300 9,600 8,250 7,200 4,300 13,200 16,300 13,764 22,988 30,954 56,950 $ 32,464 $ 35,188 $ 57,504 $ 87,544 June The following accounts receivable transactions took place in July 2020: Jul. 12 Determined the account of Vaccaro Inc. was uncollectible and wrote it off. 15 Collected $4,550 from Torrance Trucks for services in the first three months. 21 Decided the account of Lester Vert was uncollectible and wrote it off. 24 Collected $7,200 from Mick Blues for services in the month of March. 26 Received a cheque from Lester Vert for $11,000 plus two cheques, of $9,575 each, postdated to September 10 and November 10. 31 Total sales of service in the month were $172,000; 80 percent of these were on account and 60 percent of the sales on account were collected in the month. 1. Brightley Services Inc. has heard that other companies in the industry use the allowance method of accounting for uncollectibles, with many of these estimating the uncollectibles through an aging of accounts receivable. a. Journalize the adjustments that would have to be made on June 30 (for the months of March through June), assuming the following estimates of uncollectibles: Estimated Percent Uncollectible Age of Accounts Receivable From current month From prior month From two months prior From three months prior From four months prior (Round your total estimate to the nearest whole dollar.) b. Journalize the transactions of July 2020. c. Journalize the month-end adjustment, using the table that appears in requirement 1a. 2% 4 9 25 45 Brightley Services Inc. started business on March 1, 2020. The company produces monthly financial statements and had total sales of $630,000 (of which $598,500 were on account) during the first four months. On June 30, the Accounts Receivable account had a balance of $212,700 (no accounts have been written off to date), which was made up of the following accounts aged according to the date the services were provided: (Click the icon to view the aging-of-accounts-receivable table.) i (Click the icon to view the accounts receivable transactions.) Required Next, record the credit sales collected in July. (Round your answers to the nearest dollar.) General Journal Jul. Date Jul. 31 Cash Date Accounts Accounts Receivable 31 Bad Debt Expense c. Journalize the month-end adjustment, using the table that appears in requirement 1a. (Round interim calculations and your final answer to the nearest whole dollar.) General Journal Accounts Debit Allowance for Doubtful Accounts 82,560 Credit Debit 82,560 Credit Customer Torrance Trucks Vaccaro Inc. Lester Vert Mick Blues Other Accounts Receivable Month of Service: April May March $ 3,000 $ 1,450 $ 2,100 $ 1,700 1,500 1,150 1,650 4,344 7,000 5,300 9,600 8,250 7,200 4,300 13,200 16,300 13,764 22,988 30,954 56,950 $ 32,464 $ 35,188 $ 57,504 $ 87,544 June The following accounts receivable transactions took place in July 2020: Jul. 12 Determined the account of Vaccaro Inc. was uncollectible and wrote it off. 15 Collected $4,550 from Torrance Trucks for services in the first three months. 21 Decided the account of Lester Vert was uncollectible and wrote it off. 24 Collected $7,200 from Mick Blues for services in the month of March. 26 Received a cheque from Lester Vert for $11,000 plus two cheques, of $9,575 each, postdated to September 10 and November 10. 31 Total sales of service in the month were $172,000; 80 percent of these were on account and 60 percent of the sales on account were collected in the month. 1. Brightley Services Inc. has heard that other companies in the industry use the allowance method of accounting for uncollectibles, with many of these estimating the uncollectibles through an aging of accounts receivable. a. Journalize the adjustments that would have to be made on June 30 (for the months of March through June), assuming the following estimates of uncollectibles: Estimated Percent Uncollectible Age of Accounts Receivable From current month From prior month From two months prior From three months prior From four months prior (Round your total estimate to the nearest whole dollar.) b. Journalize the transactions of July 2020. c. Journalize the month-end adjustment, using the table that appears in requirement 1a. 2% 4 9 25 45 Brightley Services Inc. started business on March 1, 2020. The company produces monthly financial statements and had total sales of $630,000 (of which $598,500 were on account) during the first four months. On June 30, the Accounts Receivable account had a balance of $212,700 (no accounts have been written off to date), which was made up of the following accounts aged according to the date the services were provided: (Click the icon to view the aging-of-accounts-receivable table.) i (Click the icon to view the accounts receivable transactions.) Required Next, record the credit sales collected in July. (Round your answers to the nearest dollar.) General Journal Jul. Date Jul. 31 Cash Date Accounts Accounts Receivable 31 Bad Debt Expense c. Journalize the month-end adjustment, using the table that appears in requirement 1a. (Round interim calculations and your final answer to the nearest whole dollar.) General Journal Accounts Debit Allowance for Doubtful Accounts 82,560 Credit Debit 82,560 Credit
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Total estimated bad debts Number of Days Outstanding Total 030 3160 ... View the full 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:
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