Homework Answers
Correct answer-------$6,922
.
In allowance method using sales figure the unadjusted balance in allowance account is not considered when entry for bad debts is recorded. The % of sales considered uncollectable is directly posted as bad debt expense and allowance account is credited with same.
The unadjusted balance in allowance account is updated with the current bad debts.
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This Question: 3 pts 9 of 10 (8 complete) This Quiz: 3 Using the percentage-of-sales method,...
5. Lori's Company has the following items: cash in a checking account, $ 8,000; cash in...
5. Lori's Company has the following items: cash in a checking account, $ 8,000; cash in a savings account, $ 6,000; highminusgrade government securities due in one month (purchased last month), $ 3,536; accounts receivable, $3,000. How much should appear as Cash and Cash Equivalents on the balance sheet? A.$20,536 B. $17,536 C. $ 21,236 D. $6,000 7. Leno Company sells goods to the Fallon Company for $ 10,000. It offers credit terms of 4/10, n/30. If Fallon Company pays...
Problem 4 (24 pts) Chambers Products had sales of $15,000,000 for 2017. On December 31, 2017,...
Problem 4 (24 pts) Chambers Products had sales of $15,000,000 for 2017. On December 31, 2017, the balance in Accounts Receivable was $3,500,000. An aging analysis of the accounts receivable indicated that $154,000 in accounts are expected to be uncollectible. Prepare the adjusting entry to record estimated bad debts expense using the percentage of receivables basis under each of the following independent assumptions: Allowance for Doubtful Accounts has a credit balance of $4,500 before adjustment. Allowance for Doubtful Accounts has...
This Question: 1 pt 8 of 25 (6 complete) This Test: 25 pts possi The following...
This Question: 1 pt 8 of 25 (6 complete) This Test: 25 pts possi The following information is from the 2019 records of Fast Lane Racing Gear Accounts receivable, December 31, 2019 Allowance for Bad Debts, December 31, 2019 prior to adjustment Net credit sales for 2019 Accounts written off as uncollectible during 2019 Cash sales during 2019 $45,000 (debit) 1,700 (debit) 178,000 16,000 28,000 Bad debts expense is estimated by the aging- of-receivables method. Management estimates that $7,000 of...
1. Each of the following represents an internal control procedure except for: A.clear lines of authority and communicat...
1. Each of the following represents an internal control procedure except for: A.clear lines of authority and communication. B.compliance monitoring. C.separation of duties. D.limited access to both assets and records 2. As part of a strong internal control system, which of the following accounting duties need to be separated from cash handling? A.Record keeping B.Filing C.Transaction approval D.Both A and C need to be separated from cash handling. 3. Which of the following is NOT a way to safeguard controls?...
Chapter 8 Practice Problems Problem #5 - Percentage of sales method At the end of the...
Chapter 8 Practice Problems Problem #5 - Percentage of sales method At the end of the current year, Accounts Receivable has a balance of $4,000,000; Allowance for Doubtful Accounts has a credit balance of $50,000; and Net Sales for the year total $7,500,000, Bad Debt Expense is estimated at 3/4 of 1% of Net Sales. 1) Calculate the dollar amount required to record the allowance amount. 2) Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: Date Accounts...
This Question: 2 pts 27 of 50 (20 complete) The following information is from the 2017...
This Question: 2 pts 27 of 50 (20 complete) The following information is from the 2017 records of Albert Book Shop Accounts receivable, December 31, 2017 $42,000 (debit) Allowance for Bad Debts, December 31, 2017 prior to adjustment 1,500 (debit) Net credit sales for 2017 179,000 Accounts written off as uncollectible during 2017 18.000 Cash sales during 2017 28.500 Bad debts expense is estimated by the aging of receivables method Management estimates that $5,300 of accounts receivable will be uncollectible...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the completion of the current fiscal year...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang's Gift Shop was $28,250. Credit sales for the year were $355,200. Required: Make the necessary adjusting entry in general journal form under each of the following assumptions. Show calculations for the amount of each adjustment and the resulting net realizable value. 1. Allowance for Doubtful Accounts has a credit balance of $345. a. The...
Exercise 5-19B Compare the percentage-of-receivables method and the percentage-of-credit-sales method (LO5-9) [The following information applies to...
Exercise 5-19B Compare the percentage-of-receivables method and the percentage-of-credit-sales method (LO5-9) [The following information applies to the questions displayed below.) A company reports the following amounts at the end of Year 1 (before adjustment). Credit Sales for Year 1 Accounts Receivable, December 31, Year 1 Allowance for Uncollectible Accounts, December 31, Year 1 $ 252,000 47,000 1,200 (Credit) Exercise 5-19B Part 2 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 3% of credit...
The percentage of sales method for Schlosberg, Inc. reveals $2,200 of uncollectible accounts. The allowance for...
The percentage of sales method for Schlosberg, Inc. reveals $2,200 of uncollectible accounts. The allowance for uncollectible accounts prior to adjustment has a debit balance of $300. Using the aforementioned answer convention, prepare the journal entry needed for year-end:
perfent of sales method Ch 9-2 Practice Exercises BE Percent of Sales Method At the end...
perfent of sales method
Ch 9-2 Practice Exercises BE Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $485,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,180,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad...
Problem 4 (24 pts) Chambers Products had sales of $15,000,000 for 2017. On December 31, 2017, the balance in Accounts Receivable was $3,500,000. An aging analysis of the accounts receivable indicated that $154,000 in accounts are expected to be uncollectible. Prepare the adjusting entry to record estimated bad debts expense using the percentage of receivables basis under each of the following independent assumptions: Allowance for Doubtful Accounts has a credit balance of $4,500 before adjustment. Allowance for Doubtful Accounts has...
This Question: 1 pt 8 of 25 (6 complete) This Test: 25 pts possi The following information is from the 2019 records of Fast Lane Racing Gear Accounts receivable, December 31, 2019 Allowance for Bad Debts, December 31, 2019 prior to adjustment Net credit sales for 2019 Accounts written off as uncollectible during 2019 Cash sales during 2019 $45,000 (debit) 1,700 (debit) 178,000 16,000 28,000 Bad debts expense is estimated by the aging- of-receivables method. Management estimates that $7,000 of...
Chapter 8 Practice Problems Problem #5 - Percentage of sales method At the end of the current year, Accounts Receivable has a balance of $4,000,000; Allowance for Doubtful Accounts has a credit balance of $50,000; and Net Sales for the year total $7,500,000, Bad Debt Expense is estimated at 3/4 of 1% of Net Sales. 1) Calculate the dollar amount required to record the allowance amount. 2) Prepare the adjusting journal entry for the Allowance for Doubtful Accounts: Date Accounts...
This Question: 2 pts 27 of 50 (20 complete) The following information is from the 2017 records of Albert Book Shop Accounts receivable, December 31, 2017 $42,000 (debit) Allowance for Bad Debts, December 31, 2017 prior to adjustment 1,500 (debit) Net credit sales for 2017 179,000 Accounts written off as uncollectible during 2017 18.000 Cash sales during 2017 28.500 Bad debts expense is estimated by the aging of receivables method Management estimates that $5,300 of accounts receivable will be uncollectible...
Exercise 5-19B Compare the percentage-of-receivables method and the percentage-of-credit-sales method (LO5-9) [The following information applies to the questions displayed below.) A company reports the following amounts at the end of Year 1 (before adjustment). Credit Sales for Year 1 Accounts Receivable, December 31, Year 1 Allowance for Uncollectible Accounts, December 31, Year 1 $ 252,000 47,000 1,200 (Credit) Exercise 5-19B Part 2 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 3% of credit...
The percentage of sales method for Schlosberg, Inc. reveals $2,200 of uncollectible accounts. The allowance for uncollectible accounts prior to adjustment has a debit balance of $300. Using the aforementioned answer convention, prepare the journal entry needed for year-end:
perfent of sales method
Ch 9-2 Practice Exercises BE Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $485,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,180,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad...
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