Tammy Company had the following events during its final three months of the fiscal year ending...
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Tammy Company had the following events during its final three months of the fiscal year ending on May 31, 2022. (a) March 28: Sold $1,600 of merchandise to Laura Inc. on account. (b) March 29: Laura Inc. returned $300 of the merchandise purchased on March 28. Sold $ 4,800 of merchandise to Kyla Inc. (c) April 3: Laura Inc. paid off all her purchase (including those made in the past). (d) April 6: (e) April 14: Wrote-off an old account for $3,000 which is related to sales made prior to March 1, 2022. (f) April 25: (g) May 30: Sam Ltd. purchased $12,000 of merchandise, paid half in cash Tammy Company recovered $ 1,000 from the receivables that were written off on April 14. Additional information: • • Credit terms: 2/10, n/30 Laura Inc. has a balance of $1,000 outstanding as of March 1, 2022, from purchases made on January 10, 2022. Tammy Company records show the following account balances as of March 1, 2022: Accounts Receivables.. .$ 17,000 1,000 Allowance for Doubtful Accounts (credit balance)....... Net Credit Sales.......... 191,000 Cash Sales .... 100,000 Required: 1. Prepare the journal entries to record the above transactions. 2. Tammy Company uses the Aging of Accounts Receivables method to determine the amount of receivables that may not be collected in the future according to the following schedule: Estimated Uncollectible Rate Not yet Due...... 1-30 days past due... 31-60 days past due... More than 60 days overdue... 5% 10% 15% 20% Determine the amount of receivables that may not be collected in the future, and prepare the journal entry to record the bad debt expenses on May 31, 2022. Show all your calculations. Tammy Company had the following events during its final three months of the fiscal year ending on May 31, 2022. (a) March 28: Sold $1,600 of merchandise to Laura Inc. on account. (b) March 29: Laura Inc. returned $300 of the merchandise purchased on March 28. Sold $ 4,800 of merchandise to Kyla Inc. (c) April 3: Laura Inc. paid off all her purchase (including those made in the past). (d) April 6: (e) April 14: Wrote-off an old account for $3,000 which is related to sales made prior to March 1, 2022. (f) April 25: (g) May 30: Sam Ltd. purchased $12,000 of merchandise, paid half in cash Tammy Company recovered $ 1,000 from the receivables that were written off on April 14. Additional information: • • Credit terms: 2/10, n/30 Laura Inc. has a balance of $1,000 outstanding as of March 1, 2022, from purchases made on January 10, 2022. Tammy Company records show the following account balances as of March 1, 2022: Accounts Receivables.. .$ 17,000 1,000 Allowance for Doubtful Accounts (credit balance)....... Net Credit Sales.......... 191,000 Cash Sales .... 100,000 Required: 1. Prepare the journal entries to record the above transactions. 2. Tammy Company uses the Aging of Accounts Receivables method to determine the amount of receivables that may not be collected in the future according to the following schedule: Estimated Uncollectible Rate Not yet Due...... 1-30 days past due... 31-60 days past due... More than 60 days overdue... 5% 10% 15% 20% Determine the amount of receivables that may not be collected in the future, and prepare the journal entry to record the bad debt expenses on May 31, 2022. Show all your calculations.
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Step 12 Below are the journal entries Date Account Dr Cr 20220328 Accounts Receivable 1600 Sales 160... View the full answer
Related Book For
Survey of Accounting
ISBN: 978-0077862374
4th edition
Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor
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