Problem 7-3A Estimating and reporting bad debts LO P2

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At December 31, 2013, Hawke Company reports the following results for its calendar-year.

Cash sales	$	2,080,470
Credit sales		2,919,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable	$	884,457	debit
Allowance for doubtful accounts		11,210	debit

References

Section BreakProblem 7-3A Estimating and reporting bad debts LO P2

1.

value: 5.00 points

Required information

Problem 7-3A Part 1

Required:
1.	Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions.

a.	Bad debts are estimated to be 3% of credit sales.
b.	Bad debts are estimated to be 2% of total sales.
c.	An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31, 2013).

References

eBook & Resources

WorksheetDifficulty: Hard

Problem 7-3A Part 1Learning Objective: 07-P2 Apply the allowance method and estimate uncollectibles based on sales and accounts receivable.

eBook: Estimating Bad Debts-Percent of Sales Method

Check my work

2.

value: 5.00 points

Required information

Problem 7-3A Part 2

2.	Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1a.

References

eBook & Resources

WorksheetDifficulty: Hard

Problem 7-3A Part 2Learning Objective: 07-P2 Apply the allowance method and estimate uncollectibles based on sales and accounts receivable.

eBook: Estimating Bad DebtsPercent of Sales Method

Check my work

3.

value: 5.00 points

Required information

Problem 7-3A Part 3

3.	Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1c.

References

eBook & Resources

WorksheetDifficulty: Hard

Problem 7-3A Part 3Learning Objective: 07-P2 Apply the allowance method and estimate uncollectibles based on sales and accounts receivable.

eBook: Estimating Bad DebtsPercent of Sales Method

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Bhawna answered this 19 minutes laterWas this answer helpful?

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1,150 answers

Bhawna

1,150 answers Top Subjects: Finance, Accounting

Answer:1 Adjusting entries (all dated December 31, 2013). a )Bad debts expense 87570 Allowance for doubtful accounts 87570 b.) Bad debts expense 99989 Allowance for doubtful accounts 99989 c.) Bad debts expense 64277.42 Allowance for doubtful accounts 64277.42 THE ANSWER PROVIDED PREVIOUSLY WHICH IS LISTED BELOW IS INCORRECT! CAN SOMEONE PLEASE SOLVE THIS PORTION OF THE HOMEWORK? 7-3A PART 1 IS CORRECT BUT THIS PART (7-3A PART 2 IS WRONG) PLEASE HELP

Answer: 2.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1a. Current assets: Accounts receivable $884,457 Less: Allowance for doubtful accounts $87570 $796887 Answer:3.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1c. Current assets: Accounts receivable $884,457 Less: Allowance for doubtful accounts64277.42 $820179.58

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