Maple Supply Company, on December 20, 2022, had a credit balance of $1,700 in its Allowance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Maple Supply Company, on December 20, 2022, had a credit balance of $1,700 in its Allowance for Doubtful Accounts ledger account. On December 23, they decided that the account receivable for Hardy Corp. of $2,400 would never be paid, and they wrote it off. On December 31, Maple Supply Company aged their accounts receivable according to the following: Estimated Percentage Uncollectible Current Accounts $160,000 1% 1-30 days past due 20,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable $203,000 Required Complete the following with the details provided. A. Prepare the December 23 journal entry. (4 marks) B. Prepare the December 31, year-end adjusting entry for bad debts using the ageing of receivables method. (10 marks) C. Assume that Maple Supply Company uses the Income Statement approach. Net credit sales are $1,500,000. They believe that 0.5% of the sales will become bad debts. The Allowance for Doubtful Accounts account had the same balances and entries as in the December 23 journal entry. Prepare the adjusting entry for the current year's provision for uncollectible accounts. Show supporting calculations. (6 marks) Maple Supply Company, on December 20, 2022, had a credit balance of $1,700 in its Allowance for Doubtful Accounts ledger account. On December 23, they decided that the account receivable for Hardy Corp. of $2,400 would never be paid, and they wrote it off. On December 31, Maple Supply Company aged their accounts receivable according to the following: Estimated Percentage Uncollectible Current Accounts $160,000 1% 1-30 days past due 20,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable $203,000 Required Complete the following with the details provided. A. Prepare the December 23 journal entry. (4 marks) B. Prepare the December 31, year-end adjusting entry for bad debts using the ageing of receivables method. (10 marks) C. Assume that Maple Supply Company uses the Income Statement approach. Net credit sales are $1,500,000. They believe that 0.5% of the sales will become bad debts. The Allowance for Doubtful Accounts account had the same balances and entries as in the December 23 journal entry. Prepare the adjusting entry for the current year's provision for uncollectible accounts. Show supporting calculations. (6 marks)
Expert Answer:
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
1.Which of the following below is NOT an element of internal control? a. risk assesment b. monitoring c. information and communication d. behavior analysis ANSWER:D 2. Which of the following below is...
-
Wildcat Sporting Goods (WSG) sells athletic shoes and trendy sports apparel to a variety of sporting goods stores in the Northeast and, in 2011, WSG also began direct Internet sales to consumers....
-
Assuming 250 days of operation per year and a lead time of five days, what is the reorder point for Westside Auto in Problem 15? Show the general formula for the reorder point for the EOQ model with...
-
In 2013, Sondra makes taxable gifts aggregating $300,000. Her only other taxable gifts amount to $200,000 all of which she made in 1997. a. What is Sondra's 2013 gift tax liability? b. What is her...
-
You may have heard someone say that drinking coffee will stunt your growth. To test this, college students were asked their heights and if they were coffee drinkers. The data file CoffeeHeight.txt...
-
The plaintiffs, Lee and Yoon, were the parents of H.L., a South Korean citizen who attended high school in Idaho as part of an exchange program. With permission from both plaintiffs and his host...
-
Support-department cost allocations; single-department cost pools; direct step-down, and reciprocal methods. The Manes Company has two products. Product 1 is manufactured entirely in Department X....
-
11. Sinking Fund A company borrows $5000 on which it will pay interest at the end of each year at the annual rate of 11%. In addition, a sinking fund is set up so that the $5000 can be repaid at the...
-
(a) Explain why counting sort may not be able to sort the integers in O(n) time. (b) Explain why radix sort may not be able to sort the integers in O(n) time. (c) Given (a) and (b), explain why we...
-
Respond to Government intervention is warranted and necessary to help save firms from going out of business. While I understand the U.S. government's reasoning for issuing the bailout to GM and...
-
During the summer months, Midway, KY, hosts Midsummer Nights in Midway. The event offers live music, shopping late at local shops, face painting, kids activities, and food vendors. One vendor sells....
-
1. One theme of this episode is that "truth heals," as Annette and April's adoptive mom states. In what ways did hidden truths create traumatic experiences for the Semaganis children?
-
Two years ago, Elizabeth Maynes took out a ten year $400,000 mortgage loan from XYZ Bank Limited at an annual interest rate of 6% compounded semiannually. ABC Bank Limited is offering an eight year...
-
The following are the Dow Jones Industrial Average's annual returns for the last five years: Year Return (%) 2017 2018 2019 2020 2021 25 -6 22 7 19 What is the arithmetic average return of the Dow...
-
A total population P(t) can be partitioned into the sum of all young people Y(t), all of the middle- aged M(t), and all old people O(t). In other words, the total population can be written as P(t) =...
-
How will relating product contribution margin s to the amount of the constrained resource they consume help a company maximize its profits?
-
What are the four bases for determining employee gross earnings?
-
Record the following transactions of Fashion Designs in a general journal: DATE TRANSACTIONS 2016 April 2 Sold merchandise for cash, $1,500 plus sales tax. 3 The customer purchasing merchandise for...
-
Teagan Fitzgerald is the owner of Newport Jewelry, a store specializing in gold, platinum, and special stones. During the past year, in response to increased demand, Teagan doubled her selling space...
-
Sheds Ahead Ltd produces outdoor sheds for domestic use. The manager in charge of production has been asked to prepare a production budget, a direct materials budget and a direct labour budget for...
-
Sami Stitches Ltd produces two types of sewing machines, a standard model and a deluxe model. The budgeted factory overhead costs for the production operation during 2020 are as follows. Production...
-
Gasmania Pty Ltd produces patio heaters for household use. The following information has been gathered so that a production budget, a direct materials budget and a direct labour budget for part of...
Study smarter with the SolutionInn App