Homework Answers
Solution 10:
Bad debts expense = Required allowance - Existing balance in allowance for doubtful accounts
= ($300,000*6%) - $5,000 = $13,000
Hence option a is correct.
Solution 9:
Under the allowance method of recognizing uncollectible accounts, the entry to write off an uncollectible account "has not effect on net income" because allowance for uncollectible account is debited and accounts receivables is credited.
Hence option c is correct.
Add Answer to:
10) A trial balance before adjustments included the following Sales Accounts receivable Allowance for doubtful accounts...
A trial balance before adjustment included the following: Debit Credit Accounts receivable €80,000 Allowance for doubtful...
A trial balance before adjustment included the following: Debit Credit Accounts receivable €80,000 Allowance for doubtful accounts 730 Sales €340,000 Sales returns and allowances 8,000 a) Give journal entries assuming that the estimate of uncollectible is determined by taking 5% of gross accounts receivable. Explain your answer b) Give journal entries assuming that the estimate of uncollectible is determined by taking 4% of gross accounts receivable and the allowance for doubtful accounts has a debit balance of €1,000. Explain your answer
A trial balance before adjustment included the following: Credit Debit $164,000 Accounts receivable Allowance for doubtful...
A trial balance before adjustment included the following: Credit Debit $164,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances $1,500 638,000 9,400 Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 9% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (2) 4% of gross accounts receivable (assuming a $1,500 debit allowance account balance). (Credit account...
350 8) Kaniper Company has the following balances at December 31, 2017 Cash in checking account...
350 8) Kaniper Company has the following balances at December 31, 2017 Cash in checking account $15,000 Petty cash 250 Check from customer dated 01/31/2018 Certificates of Deposits, maturing in 1-5 years 250,000 US Treasury bill purchased 12/1/2017, maturing 2/20/2018 40,000 US Treasury bill purchased 3/1/2017, maturing 1/20/2018 36,000 Cash in bond sinking fund account 60,000 Kaniper's policy is to treat as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. What amount...
B. Uncollectible Accounts A trial balance of Golden Rams Company before adjustments included the following: Debit...
B. Uncollectible Accounts A trial balance of Golden Rams Company before adjustments included the following: Debit Credit $500,000 Sales Sales Returns and Allowance. Accounts Receivable. Allowance for Doubtful Accounts $ 10,000 80,000 . 1,000 ccount Receuades 1. If the estimate of uncollectibles is made by taking 10% of gross account, the amount of the adjustment under the Allowance Method is A. $6,000 C. $8,000. B. $7,000. D. $9.000. 2. Under 1 above, If the Allowance of Doubtful Accounts had a...
Assume the following information for Skysong Corp. $151,000 Accounts receivable (beginning balance) Allowance for doubtful accounts...
Assume the following information for Skysong Corp. $151,000 Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) 11,370 Net credit sales 932,000 918,000 Collections Write-offs of accounts receivable 5,600 Collections of accounts previously written off 2,100 Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and...
Assume the following information for Larkspur Corp. Accounts receivable (beginning balance) $160,000 Allowance for doubtful accounts...
Assume the following information for Larkspur Corp. Accounts receivable (beginning balance) $160,000 Allowance for doubtful accounts (beginning balance) 11,400 Net credit sales 934,000 Collections 920,000 Write-offs of accounts receivable 6,500 Collections of accounts previously written off 2,300 Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable. Determine the ending balance in Accounts Receivable and the unadjusted balance in Allowance for Doubtful Accounts. Ending balance in Accounts Receivable $enter a dollar amount Unadjusted balance in Allowance...
Assume the following information for Marin Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning...
Assume the following information for Marin Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off $162,000 11,410 934,000 911,000 6,300 1,600 Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and...
1. Metlock Company's unadjusted trial balance at December 31, 2020, included the following accounts. Accounts receivable...
1. Metlock Company's unadjusted trial balance at December 31, 2020, included the following accounts. Accounts receivable Allowance for doubtful accounts Net sales Debit $55,100 5,610 $1,229.500 Matlock Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2020 Bad debt expense for 2020 $ 2. An analysis and aging of Bonita Corp. accounts receivable at December 31, 2020, disclosed the following. Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful...
Assume the following information for Marin Corp. Accounts receivable (beginning balance) $135,000 Allowance for doubtful accounts...
Assume the following information for Marin Corp.
Accounts receivable (beginning balance)
$135,000
Allowance for doubtful accounts (beginning balance)
11,390
Net credit sales
940,000
Collections
902,000
Write-offs of accounts receivable
5,900
Collections of accounts previously written off
2,200
Uncollectible accounts are expected to be 6% of the ending balance
in accounts receivable.
Prepare the entries to record sales and collections during the
period. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and...
Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts...
Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off $159,000 11,470 944,000 906,000 5,400 2,000 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented whe amount is entered. Do not indent manually.) Account Titles and...
A trial balance before adjustment included the following: Credit Debit $164,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances $1,500 638,000 9,400 Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 9% of gross accounts receivable (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (2) 4% of gross accounts receivable (assuming a $1,500 debit allowance account balance). (Credit account...
350 8) Kaniper Company has the following balances at December 31, 2017 Cash in checking account $15,000 Petty cash 250 Check from customer dated 01/31/2018 Certificates of Deposits, maturing in 1-5 years 250,000 US Treasury bill purchased 12/1/2017, maturing 2/20/2018 40,000 US Treasury bill purchased 3/1/2017, maturing 1/20/2018 36,000 Cash in bond sinking fund account 60,000 Kaniper's policy is to treat as cash equivalents all highly liquid investments with a maturity of three months or less when purchased. What amount...
B. Uncollectible Accounts A trial balance of Golden Rams Company before adjustments included the following: Debit Credit $500,000 Sales Sales Returns and Allowance. Accounts Receivable. Allowance for Doubtful Accounts $ 10,000 80,000 . 1,000 ccount Receuades 1. If the estimate of uncollectibles is made by taking 10% of gross account, the amount of the adjustment under the Allowance Method is A. $6,000 C. $8,000. B. $7,000. D. $9.000. 2. Under 1 above, If the Allowance of Doubtful Accounts had a...
Assume the following information for Skysong Corp. $151,000 Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) 11,370 Net credit sales 932,000 918,000 Collections Write-offs of accounts receivable 5,600 Collections of accounts previously written off 2,100 Uncollectible accounts are expected to be 7% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Account Titles and...
Assume the following information for Marin Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off $162,000 11,410 934,000 911,000 6,300 1,600 Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and...
1. Metlock Company's unadjusted trial balance at December 31, 2020, included the following accounts. Accounts receivable Allowance for doubtful accounts Net sales Debit $55,100 5,610 $1,229.500 Matlock Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2020 Bad debt expense for 2020 $ 2. An analysis and aging of Bonita Corp. accounts receivable at December 31, 2020, disclosed the following. Amounts estimated to be uncollectible Accounts receivable Allowance for doubtful...
Assume the following information for Marin Corp.
Accounts receivable (beginning balance)
$135,000
Allowance for doubtful accounts (beginning balance)
11,390
Net credit sales
940,000
Collections
902,000
Write-offs of accounts receivable
5,900
Collections of accounts previously written off
2,200
Uncollectible accounts are expected to be 6% of the ending balance
in accounts receivable.
Prepare the entries to record sales and collections during the
period. (Credit account titles are automatically
indented when the amount is entered. Do not indent
manually.)
Account Titles and...
Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off $159,000 11,470 944,000 906,000 5,400 2,000 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented whe amount is entered. Do not indent manually.) Account Titles and...
Most questions answered within 3 hours.
-
At 1 bar, how much energy is required to heat 61.0 g of H2O(s)
at −12.0...
asked 8 minutes ago -
Find the mixed-strategy equilibrium to the Battle of the sexes
game in Figure 5.1 below
Hockey...
asked 10 minutes ago -
Use the following information to answer the next three
questions.
QUESTION 5
As of today, the...
asked 16 minutes ago -
Using the specific identification method: Date Units purchased
Cost per unit Ending inventory March 1 15...
asked 18 minutes ago -
PLEASE HELP, NO ONE IS ANSWERING MY QUESTION AND IT IS SUE TODAY
WORTH 20% OF...
asked 33 minutes ago -
α = 0.0007889 T, I = 2.9 A
Other Magnetic Fields: First, based on your
value...
asked 32 minutes ago -
This assignment is a continuation of the 2nd one. You as a HR
Manager, select an...
asked 35 minutes ago -
Hastings Entertainment has a beta of 0.64. If the market return
is expected to be 13.80...
asked 46 minutes ago -
9. Depository institutions are always:
a. illiquid
b. profitable
c. insolvent
d. all of the above...
asked 54 minutes ago -
Use AstroTurf Company's income statement below to answer the
following two questions. Answer these questions with...
asked 54 minutes ago -
How is a firm's task
environment different from its general environment? Provide
examples of both types...
asked 52 minutes ago -
What is one reason Innovators can adopt innovations so
early?
Group of answer choices
they are...
asked 54 minutes ago