A company had $3,200,000 in credit sales in year 2. At the end of the year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A company had $3,200,000 in credit sales in year 2. At the end of the year (but before any adjusting journal entries), they had the following account balances: Accounts Receivable Total Account Receivable Allowance for Doubtful Accounts (credit balance) For the following journal entries use these account names EXACTLY Cash Bad Debt Expense Allowance for Doubtful Accounts Accounts Receivable Q (3) (0-30 days) (31-60 days) (Over 60 days) Question Create the following three Journal Entries, treating them as independent events. (1) If the company used the percentage of sales method to account for uncollectible accounts and they believed that 1.5 percent of sales will ultimately become uncollectible, prepare the adjusting journal entry to recognize bad debt expense in year 2. (2) If a customer informed the company that it would not pay $14.000 that it owed. prepare the journal entry to write off the uncollectible account. Account Name $ 105,000 65,000 (3) If the company used the percentage of accounts receivable method to account for uncollectible accounts and believed that 1 percent of the 0-30 day. 5 percent of the 31 60 day, and 45 percent of the over 60 day receivables would eventually prove uncollectible, prepare the adjusting journal entry to recognize bad debts for year 2. 6 20.000 190.000 Debit Amount 11.000 Credit Amount A company had $3,200,000 in credit sales in year 2. At the end of the year (but before any adjusting journal entries), they had the following account balances: Accounts Receivable Total Account Receivable Allowance for Doubtful Accounts (credit balance) For the following journal entries use these account names EXACTLY Cash Bad Debt Expense Allowance for Doubtful Accounts Accounts Receivable Q (3) (0-30 days) (31-60 days) (Over 60 days) Question Create the following three Journal Entries, treating them as independent events. (1) If the company used the percentage of sales method to account for uncollectible accounts and they believed that 1.5 percent of sales will ultimately become uncollectible, prepare the adjusting journal entry to recognize bad debt expense in year 2. (2) If a customer informed the company that it would not pay $14.000 that it owed. prepare the journal entry to write off the uncollectible account. Account Name $ 105,000 65,000 (3) If the company used the percentage of accounts receivable method to account for uncollectible accounts and believed that 1 percent of the 0-30 day. 5 percent of the 31 60 day, and 45 percent of the over 60 day receivables would eventually prove uncollectible, prepare the adjusting journal entry to recognize bad debts for year 2. 6 20.000 190.000 Debit Amount 11.000 Credit Amount A company had $3,200,000 in credit sales in year 2. At the end of the year (but before any adjusting journal entries), they had the following account balances: Accounts Receivable Total Account Receivable Allowance for Doubtful Accounts (credit balance) For the following journal entries use these account names EXACTLY Cash Bad Debt Expense Allowance for Doubtful Accounts Accounts Receivable Q (3) (0-30 days) (31-60 days) (Over 60 days) Question Create the following three Journal Entries, treating them as independent events. (1) If the company used the percentage of sales method to account for uncollectible accounts and they believed that 1.5 percent of sales will ultimately become uncollectible, prepare the adjusting journal entry to recognize bad debt expense in year 2. (2) If a customer informed the company that it would not pay $14.000 that it owed. prepare the journal entry to write off the uncollectible account. Account Name $ 105,000 65,000 (3) If the company used the percentage of accounts receivable method to account for uncollectible accounts and believed that 1 percent of the 0-30 day. 5 percent of the 31 60 day, and 45 percent of the over 60 day receivables would eventually prove uncollectible, prepare the adjusting journal entry to recognize bad debts for year 2. 6 20.000 190.000 Debit Amount 11.000 Credit Amount
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
What can an educational administrator do to affect the culture for change (readiness for change) in an educational institution? What are the criteria or characteristics of an organization that can be...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The management of Mecca Copy, a photocopying centre located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: Ending Balances...
-
Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. a. Assuming Phil's wages were $27,000 and Linda's wages were...
-
Using financial websites, company websites, and search engines, develop a basic overview report (primary service offerings, annual sales, current stock price, and recent news) for one domestic or...
-
What is an affirmative defense? Why is it important for the defendant to include affirmative defenses in the answer?
-
EKC Company uses the retail inventory method. The following information for 2016 is available: Required: Compute the cost of the ending inventors under each of the following cost flow assumptions...
-
5. A lotto game is set up so that 5 digits are going to be randomly drawn, independently from each other, to form a 5 digit number. Each digit can take an integer value between 0 and 9, with each...
-
Using the Public MACRO BITCOIN scorecard spreadsheet (linked in its associated masterclass lesson - Long Term 32), create a COPY of it and perform a complete analysis for the date 22/2/2022....
-
The following is a set of hypothetical production possibilities for a nation. Combination Capital goods (000) A 0 B C D E a. Plot the PPC. b. Label : F - Inefficiency G- Unattainable 2 4 6 8 Consumer...
-
An article in the Economist observes that In an open economy, however, some of the effects of the shifts in [aggregate] demand spill over to the rest of the world. Briefly explain how the effects of...
-
Suppose that youre a manager at Apple. Apple is considering whether to subsidize the cost to its suppliers, such as Foxconn, of building redundant factories in countries outside of China. The goal is...
-
In generalized coordinates, obtain the Navier-Stokes equations for the thin shear layercase in terms of the contravariant velocity components.
-
Identify the three parties with the strongest interests in parentage determinations and describe the nature of those interests.
-
Identify and describe the three primary ways of establishing legal parentage.
-
Lateral femoralcutaneous nerve is a branch of the femoral nerve a) True b) False
-
Per Bag Direct materials: 25 pounds of CWhiz-2000 @ $0.08/lb. = $ 2.00 Direct labor: 0.05 hour @ $32.00/hr. = $ 1.60 The company manufactured 100,000 bags of Cheese-Be-Good in December and used...
-
For each of the following cases, indicate the filing status for the taxpayer(s) for 2012 using the following legend: A - Single B - Married, filing a joint return C - Married, filing separate returns...
-
During the 2012 tax year, Irma incurred the following expenses: Union dues..............................................................$275 Tax return preparation...
-
Deborah purchases a new $30,000 car in 2012 to use exclusively in her business. If Deborah does not elect to expense or take bonus depreciation in 2012 and holds the car until it is fully...
-
How does the auditors professional duty of confidence affect disclosures to third parties?
-
When can auditors disclose unlawful acts to the police?
-
What should auditors do if they discover an unlawful act?
Study smarter with the SolutionInn App