Riverbed Company has determined, based on several years’ of collections history, that 3% of its accounts...
Riverbed Company has determined, based on several years’ of collections history, that 3% of its accounts receivable will become uncollectible. At the company’s year end of December 31, 2020, Riverbed carried a balance of $745,000 in accounts receivable. The pre-closing credit balance in allowance for doubtful accounts was $6,600. On January 15, 2021, Riverbed determined that it would not be able to collect the $2,600 owed by BHT Inc. After several months of repeated collections attempts and other legal activities on August 12, BHT paid Riverbed $560 of the previously written-off balance. Prepare the necessary journal entries to record the above transactions. Assume that Riverbed uses the allowance method for accounting for impairments of accounts receivable.
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Riverbed Company has determined, based on several years’ of
collections history, that 3% of its accounts...
On December 31, 2015, a company reported the following information on its balance sheet: Accounts receivable...
On December 31, 2015, a company reported the following information on its balance sheet: Accounts receivable $838,000 Less: Allowance for Doubtful Accounts 46,000 (cr.) During 2016, the company had the following transactions related to receivables: Sales on account $3,000,000 Collections of accounts receivable 2,712,000 Write-offs of accounts determined to be uncollectible 31,500 Recovery of prior write-offs 6,600 a) Determine the ending accounts receivable balance on December 31, 2016. b)If the company estimates 3% of credit sales will not be collected,...
Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of...
Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of $3,000,000 for the year. Rich Carvajal, Chief Accountant at Blazer, estimates that 5% of their receivables will be uncollectible. He also determines that the Allowance for Doubtful Accounts has a $7,000 credit balance on December 31 prior to any adjustments. On March 1, Blazer determines that a $5,000 account owed by GTech Corp will be uncollectible. If Blazer uses the Direct Write Off Method...
Suppose the Conner Company has an accounts receivable balance of $100,000 on December 31, 2016. History...
Suppose the Conner Company has an accounts receivable balance of $100,000 on December 31, 2016. History suggests that of the $75,000 that are current, historically 1% become uncollectible. Also, of the $20,000 that are 31-60 days delinquent, historically 5% are uncollectible. Of the $4,000 that are 61-90 days delinquent, historically 10% are uncollectible, and finally, of the $1,000 that are more than 90 days delinquent, historically 20% are uncollectible. The balance in allowance for doubtful accounts just prior to the...
DejaVu Company has been in business for several years and has the following information for its...
DejaVu Company has been in business for several years and has
the following information for its operations in the current
year:
Total credit sales
$3,360,000
Bad debts written off in the year
62,000
Accounts receivable balance on December 31 (after writing off
the bad debts above)
501,000
Assume that DejaVu Company decides to estimate its bad debts
expense at 2% of credit sales.
i.
What amount of bad debts expense will the company record if it
has a credit balance...
Dejavu Company has been in business for several years and has the following information for its operations in the curre...
Dejavu Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Bad debts written off in the year Accounts receivable balance on December 31 (after writing off the bad debts above) $3,081,000 80,000 510,000 Assume that DejaVu Company decides to estimate its bad debts expense at 2% of credit sales. i. What amount of bad debts expense will the company record if it has a credit balance...
Allowance Method Fullerton Company, which has been in business for three years, makes all of its sales on account and does not offer cash discounts. The firm's credit sales, collections from customers, and write-offs of uncollectible accounts for the thre
Allowance Method Fullerton Company, which has been in business for three years, makes all of its sales on account and does not offer cash discounts. The firm's credit sales, collections from customers, and write-offs of uncollectible accounts for the three-year period are summarized below:RequiredIf Fullerton Company had used the allowance method of recognizing credit losses and had provided for such losses at the rate of 1.2 percent of credit sales, what amounts in accounts receivable and the allowance for doubtful...
Application Problem 6-11A a-c DejaVu Company has been in business for several years and has the...
Application Problem 6-11A a-c DejaVu Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Bad debts written off in the year Accounts receivable balance on December 31 (after writing off the bad debts above) $3,186,000 64,000 535,000 Assume that DejaVu Company decides to estimate its bad debts expense at 2% of credit sales. 1. What amount of bad debts expense will the company record if it...
PRACTICAL APPLIATION #5 A. The Kelley company has divided its accounts receivable into five age groups...
PRACTICAL APPLIATION #5 A. The Kelley company has divided its accounts receivable into five age groups by preparing the following aging schedule: Total Not yet 1 - 30 31 - 60 61 - 90 Over 90 days past days past days past days past due due due due due 4,500 Eastern company4,500 Northern company 1.200 Western company 20.00 Southern company 800 National company 6,500 Other customers 35,000 - 300 500 1.500 - 3,500 16,000 500 - 3,000 11,000 4.800 1.200...
Pronghorn Corporation has conducted a year-end review of its outstanding accounts receivable and has determined the fol...
Pronghorn Corporation has conducted a year-end review of its outstanding accounts receivable and has determined the following information at December 31, 2021: Outstanding Percentage Estimated Balance to be Uncollectible $72,800 31.200 15,600 10% 5,200 18% 2,100 2495 0 - 30 days outstanding 31 - 60 days outstanding 61 - 90 days outstanding 91 - 120 days outstanding Over 120 days outstanding 5% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit...
Only #2b, c, and 3 please Raintree Cosmetic Company sells its products to customers on a...
Only #2b, c, and 3 please
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $42,000 $ 492,000 During 2021, credit sales were $1,810,000, cash collections from customers $1,890,000, and $51,000 in accounts receivable were written off. In addition, $4,200 was collected from...
Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of $3,000,000 for the year. Rich Carvajal, Chief Accountant at Blazer, estimates that 5% of their receivables will be uncollectible. He also determines that the Allowance for Doubtful Accounts has a $7,000 credit balance on December 31 prior to any adjustments. On March 1, Blazer determines that a $5,000 account owed by GTech Corp will be uncollectible. If Blazer uses the Direct Write Off Method...
Suppose the Conner Company has an accounts receivable balance of $100,000 on December 31, 2016. History suggests that of the $75,000 that are current, historically 1% become uncollectible. Also, of the $20,000 that are 31-60 days delinquent, historically 5% are uncollectible. Of the $4,000 that are 61-90 days delinquent, historically 10% are uncollectible, and finally, of the $1,000 that are more than 90 days delinquent, historically 20% are uncollectible. The balance in allowance for doubtful accounts just prior to the...
DejaVu Company has been in business for several years and has
the following information for its operations in the current
year:
Total credit sales
$3,360,000
Bad debts written off in the year
62,000
Accounts receivable balance on December 31 (after writing off
the bad debts above)
501,000
Assume that DejaVu Company decides to estimate its bad debts
expense at 2% of credit sales.
i.
What amount of bad debts expense will the company record if it
has a credit balance...
Dejavu Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Bad debts written off in the year Accounts receivable balance on December 31 (after writing off the bad debts above) $3,081,000 80,000 510,000 Assume that DejaVu Company decides to estimate its bad debts expense at 2% of credit sales. i. What amount of bad debts expense will the company record if it has a credit balance...
Application Problem 6-11A a-c DejaVu Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Bad debts written off in the year Accounts receivable balance on December 31 (after writing off the bad debts above) $3,186,000 64,000 535,000 Assume that DejaVu Company decides to estimate its bad debts expense at 2% of credit sales. 1. What amount of bad debts expense will the company record if it...
PRACTICAL APPLIATION #5 A. The Kelley company has divided its accounts receivable into five age groups by preparing the following aging schedule: Total Not yet 1 - 30 31 - 60 61 - 90 Over 90 days past days past days past days past due due due due due 4,500 Eastern company4,500 Northern company 1.200 Western company 20.00 Southern company 800 National company 6,500 Other customers 35,000 - 300 500 1.500 - 3,500 16,000 500 - 3,000 11,000 4.800 1.200...
Pronghorn Corporation has conducted a year-end review of its outstanding accounts receivable and has determined the following information at December 31, 2021: Outstanding Percentage Estimated Balance to be Uncollectible $72,800 31.200 15,600 10% 5,200 18% 2,100 2495 0 - 30 days outstanding 31 - 60 days outstanding 61 - 90 days outstanding 91 - 120 days outstanding Over 120 days outstanding 5% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit...
Only #2b, c, and 3 please
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2020 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $42,000 $ 492,000 During 2021, credit sales were $1,810,000, cash collections from customers $1,890,000, and $51,000 in accounts receivable were written off. In addition, $4,200 was collected from...
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