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Sun Systems Inc. | |||||||||
Answer a | Journal Entry | ||||||||
Date | Account | Debit $ | Credit $ | ||||||
Write off of uncollectible | Allowance for doubtful accounts | 1,890.00 | |||||||
Account Receivable | 1,890.00 | ||||||||
Answer b 1. | Note | ||||||||
Total sales | 324,000.00 | A | |||||||
Credit sales | 1/6 | B | |||||||
Credit sales ($) | 54,000.00 | C=A*B | |||||||
Uncollectible amount % | 1.50% | D | |||||||
Uncollectible amount | 810.00 | E=C*D | |||||||
Allowance for doubtful accounts | |||||||||
Opening | 1,620.00 | F | |||||||
Write off of uncollectible | (1,890.00) | G | Journal Entry | ||||||
Balance before adjustment | (270.00) | H=F+G | Account | Debit $ |
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Uncollectible amount for 2020 | 810.00 | See E | Bad Debt Expense | 1,080.00 |
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Bad Debt Expense for 2020 | 1,080.00 | I=E-H | Allowance for doubtful accounts | 1,080.00 | |||||
Answer b 2. | Note | ||||||||
Accounts receivable | 32,490.00 | J | |||||||
Write off of uncollectible | 1,890.00 | K | |||||||
Accounts receivable closing | 30,600.00 | L=J-K | |||||||
Uncollectible amount % | 2.50% | M | |||||||
Uncollectible amount | 765.00 | N=L*M | |||||||
Allowance for doubtful accounts | |||||||||
Opening | 1,620.00 | F | |||||||
Write off of uncollectible | (1,890.00) | G | Journal Entry | ||||||
Balance before adjustment | (270.00) | H=F+G | Account | Debit $ |
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Uncollectible amount for 2020 | 765.00 | See N | Bad Debt Expense | 1,035.00 | |||||
Bad Debt Expense for 2020 | 1,035.00 | O=N-H | Allowance for doubtful accounts |
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Answer b 3. | |||||||||
Accounts receivable closing | 30,600.00 | See L | |||||||
Less: | |||||||||
Between 1 to 60 days | 7,200.00 | ||||||||
Past due over 60 days | 5,400.00 | ||||||||
Not Past due | 18,000.00 | P | |||||||
See P | Q | R= P*Q | |||||||
Status | Amount | Uncollectible % | Allowance for Doubtful Accounts | Note | |||||
Not Past due | 18,000.00 | 0.5% | 90.00 | ||||||
Between 1 to 60 days | 7,200.00 | 1% | 72.00 | ||||||
Past due over 60 days | 5,400.00 | 8% | 432.00 | ||||||
30,600.00 | 594.00 | S | |||||||
Allowance for doubtful accounts | |||||||||
Opening | 1,620.00 | F | |||||||
Write off of uncollectible | (1,890.00) | G | Journal Entry | ||||||
Balance before adjustment | (270.00) | H=F+G | Account | Debit $ |
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Uncollectible amount for 2020 | 594.00 | See S | Bad Debt Expense | 864.00 | |||||
Bad Debt Expense for 2020 | 864.00 | T=S-H | Allowance for doubtful accounts |
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