Debit | Credit | ||||||||
2019 | (Adjustment a) | ||||||||
Dec. | 31 | Uncollectible Accounts Expense | 2,904.00 | ||||||
Allowance for Doubtful Accounts | 2,904.00 | ||||||||
To record estimated loss from Uncollectible accounts based on 0.4% of net credit sales, $726,000 | |||||||||
(Adjustment b) | |||||||||
31 | Supplies Expense | 4,800.00 | |||||||
Supplies | 4,800.00 | ||||||||
To record supplies used during the year | |||||||||
(Adjustment c) | |||||||||
31 | Insurance Expense | 1,380.00 | |||||||
Prepaid Insurance | 1,380.00 | ||||||||
To record expired insurance on 1-year $5,520 policy purchased on Oct. 1 | |||||||||
(Adjustment d) | |||||||||
31 | Depreciation. Exp.—Store Equipment | 14,400.00 | |||||||
Accum. Depreciation—Store Equip. | 14,400.00 | ||||||||
To record depreciation | |||||||||
(Adjustment e) | |||||||||
31 | Salaries Expense—Office | 2,900.00 | |||||||
Salaries Payable | 2,900.00 | ||||||||
To record accrued salaries for Dec. 29–31 | |||||||||
(Adjustment f) | |||||||||
31 | Payroll Taxes Expense | 221.85 | |||||||
Social Security Tax Payable | 179.80 | ||||||||
Medicare Tax Payable | 42.05 | ||||||||
To record accrued payroll taxes on accrued salaries: social security, 6.2% × 2,900 = $179.80; Medicare, 1.45% × 2,900 = $42.05 | |||||||||
(Adjustment g) | |||||||||
31 | Interest Expense | 210.00 | |||||||
Interest Payable | 210.00 | ||||||||
To record accrued interest on a 4-month, 6% trade note payable dated Nov. 1: $21,000 × 0.06 × 2/12 = $210.00 | |||||||||
(Adjustment h) | |||||||||
31 | Interest Receivable | 174.00 | |||||||
Interest Income | 174.00 | ||||||||
To record interest earned on 6-month, 8% note receivable dated Oct. 1: $8,700 × 0.08 × 3/12 = $174.00 | |||||||||
Examine the above adjusting entries and determine which ones should
be reversed. Show the reversing entries that should be recorded in
the general journal as of January 1, 2020. (Record the
entries in the order given. Round your answers to 2 decimal
places.)
Only the first entry is to be reversed, below would be the treatment:-
Allowance for Doubtful Accounts dr 2,904
To Uncollectible Accounts Expense 2,904
All other entries are accrual entries and need not be reversed. However if it is assumed that salary would be recorded for the month again, then salary entry would be also reversed. The following would be the reversal
Salaries Payable dr 2,900
To Salaries Expense—Office 2,900
Debit Credit 2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 2,904.00 Allowance for Doubtful Accounts 2,904.00...
Debit Credit 2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 2,904.00 Allowance for Doubtful Accounts 2,904.00 To record estimated loss from Uncollectible accounts based on 0.4% of net credit sales, $726,000 (Adjustment b) 31 Supplies Expense 4,800.00 Supplies 4,800.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,380.00 Prepaid Insurance 1,380.00 To record expired insurance on 1-year $5,520 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 14,400.00 Accum. Depreciation—Store Equip. 14,400.00 To record...
Debit Credit 2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 2,904.00 Allowance for Doubtful Accounts 2,904.00 To record estimated loss from Uncollectible accounts based on 0.4% of net credit sales, $726,000 (Adjustment b) 31 Supplies Expense 4,800.00 Supplies 4,800.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,380.00 Prepaid Insurance 1,380.00 To record expired insurance on 1-year $5,520 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 14,400.00 Accum. Depreciation—Store Equip. 14,400.00 To record...
2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 2,904.00 Allowance for Doubtful Accounts 2,904.00 To record estimated loss from Uncollectible accounts based on 0.4% of net credit sales, $726,000 (Adjustment b) 31 Supplies Expense 4,800.00 Supplies 4,800.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,380.00 Prepaid Insurance 1,380.00 To record expired insurance on 1-year $5,520 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 14,400.00 Accum. Depreciation—Store Equip. 14,400.00 To record depreciation (Adjustment...
2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 2,904.00 Allowance for Doubtful Accounts 2,904.00 To record estimated loss from Uncollectible accounts based on 0.4% of net credit sales, $726,000 (Adjustment b) 31 Supplies Expense 4,800.00 Supplies 4,800.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,380.00 Prepaid Insurance 1,380.00 To record expired insurance on 1-year $5,520 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 14,400.00 Accum. Depreciation—Store Equip. 14,400.00 To record depreciation (Adjustment...
2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 4,344.00 Allowance for Doubtful Accounts 4,344.00 To record estimated loss from Uncollectible accounts based on 0.6% of net credit sales, $724,000 (Adjustment b) 31 Supplies Expense 4,600.00 Supplies 4,600.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,320.00 Prepaid Insurance 1,320.00 To record expired insurance on 1-year $5,280 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 14,200.00 Accum. Depreciation—Store Equip. 14,200.00 To record depreciation (Adjustment...
2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 3,600.00 Allowance for Doubtful Accounts 3,600.00 To record estimated loss from Uncollectible accounts based on 0.5% of net credit sales, $720,000 (Adjustment b) 31 Supplies Expense 4,200.00 Supplies 4,200.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,200.00 Prepaid Insurance 1,200.00 To record expired insurance on 1-year $4,800 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 13,800.00 Accum. Depreciation—Store Equip. 13,800.00 To record depreciation (Adjustment...
Debit Credit (Adjustment a) 2019 Dec. 31 Uncollectible Accounts Expense 4,326.00 Allowance for Doubtful Accounts 4,326.00 To record estimated loss from Uncollectible accounts based on 0.68 of net credit sales, $721,000 (Adjustment b) 31 Supplies Expense 4,300.00 Supplies To record supplies used during the year (Adjustment c Insurance Expense Prepaid Insurance To record expired insurance on 1-year $4,920 policy purchased on Oct. 1 4,300.00 1,230.00 31 1,230.00 (Adjustment d) 31 Depreciation. Exp.-Store Equipment 13,900.00 Accum. Depreciation-Store Equip To record depreciation...
Credit Debit 3,670.ee 3,670.00 5,669.88 5,680.80 1,620.ee 1,628.90 15,200.00 15,200.ee 2019 Adjustment a Dec.31 Uncollectible Accounts Expense Allowance for Doubtful Accounts To record estimated loss from Uncollectible accounts based on 8.5% of net credit sales, $734,890 (Adjustment b) 31 Supplies Expense Supplies To record supplies used during the year (Adjustment C) 31 Insurance Expense Prepaid Insurance To record expired insurance on 1-year $6,488 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp. -Store Equipment Accum. Depreciation Store Equip. To...
Credit Debit 4,362.00 4, 362.00 4,900.00 4,900.00 1,410.ee 1,410.08 14,500.00 14,500.00 2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense Allowance for Doubtful Accounts To record estimated loss from Uncollectible accounts based on 0.6% of net credit sales, $727,000 (Adjustment b) 31 Supplies Expense Supplies To record supplies used during the year (Adjustment ) 31 Insurance Expense Prepaid Insurance To record expired insurance on 1-year $5,640 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.-Store Equipment Accum. Depreciation-Store Equip. To...
Date General Journal Debit Credit Jan 31 2021 Bad Debt Expense ? Allowance for Uncollectible Accounts ? Record the closing entry for revenue 31 Jan 2021 ? ? ? ? Record the closing entry for expenses 31 Jan 2021 ? ? ? ? On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Debit Credit Accounts Cash $27,500 15,400 Accounts Receivable Allowance for Uncollectible Accounts S 4,400 Supplies Notes Receivable (6%, due in 2...