Homework Answers
Net Realizable Value of Accounts Receivable = Accounts Receivable - Allowance for Doubtful Debts
2018 = $1000-60 = $940
2019 = $2060-90 = $1970
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Demonstration Problem 5-1: Accounting for Uncollectible Receivables The Solo Company was started on January 1, 2018....
Rosie Dry Cleaning was started on January 1, 2018. It experienced the following events during its...
Rosie Dry Cleaning was started on January 1, 2018. It experienced the following events during its first two years of operation: Events Affecting 2018 1. Provided $27,580 of cleaning services on account. 2. Collected $22.064 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting 2019 1. Wrote off a $207 account receivable that was determined to be uncollectible. 2. Provided...
Problem 7-4 Uncollectible accounts [LO7-5, 7-6] Raintree Cosmetic Company sells its products to c...
Problem 7-4 Uncollectible accounts [LO7-5, 7-6] 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 2017 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $30,000 $432,000 During 2018, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible accounts...................$66,600 The following are the transactions to be taken into consideration for 2019: Total credit sales for 2019 were $3,600,000. 2% of sales were estimated to be uncollectible. The company received cash payments on account during 2019 for $1,000,000 Accounts receivable identified to be uncollectible totaled $94,000. December 31, 2019, aging of receivables indicates that $75,000 of the receivables is uncollectible. Requirements: What was...
Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method. The following...
Accounting for notes receivable and uncollectible accounts using
the percent of sales allowance method. The following transactions
apply to Hooper Co. for 2018, its first year of operations:
1. Issued $60,000 of common stock for cash.
2. Provided $90,000 of services on account.
3. Collected $78,000 cash from accounts
receivable.
4. Loaned $20,000 to Mosby Co. on November 30,
2018. The note had a one-year term to maturity and a 6 percent
interest rate.
5. Paid $26,000 of salaries expense...
Problem 5-23 Determining account balances: Percent of revenue method of accounting for uncollectible accounts LO 5-2...
Problem 5-23 Determining account balances: Percent of revenue method of accounting for uncollectible accounts LO 5-2 The following information is available for Quality Book Sales's sales on account and accounts receivable: $124,880 3,030 Accounts Receivable Balance, January 1, 2018 Allowance for Doubtful Accounts, January 1, 2018 Sales on Account, 2018 Collections of Accounts Receivable, 2018 809,270 840,735 After several collection attempts, Quality Book Sales wrote off $2,590 of accounts that could not be collected. Quality Book Sales estimates that 1.75...
*Do not use journal entries format* Demonstration Problem 2-2: Accruals and Deferrals Part A Smith Company...
*Do not use journal entries format*
Demonstration Problem 2-2: Accruals and Deferrals Part A Smith Company experienced the following accounting events during 2018: 1. Smith Company was started on January 1 when it issued common stock for $2,000 cash. 2. During the year, the company recognized $1,500 of consulting revenue on account. 3. The company collected $1,200 cash from accounts receivable. 4. Smith accrued salary expense during the year of $900. 5. Paid $700 of the salaries payable liability 6....
Roth Service Co. experienced the following transactions for 2018, its first year of operations: Provided $68,000...
Roth Service Co. experienced the following transactions for
2018, its first year of operations:
Provided $68,000 of services on account.
Collected $38,500 cash from accounts receivable.
Paid $28,000 of salaries expense for the year.
Roth adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent Likely to Be Uncollectible
Allowance Balance
Current
$
15,400
0.01
0-30
5,400
0.05
31-60
3,900
0.10
61-90
1,100
0.30
Over 90 days
3,700
0.50
Required...
Alcor Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1....
Alcor Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1. Acquired $62,000 cash from the issue of common stock. 2. Purchased $1,600 of supplies on account. 3. Purchased land that cost $22,000 cash. 4. Paid $1,600 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $46,000. 6. Paid $23,000 cash for other operating expenses. 7. Collected $40,000 cash from accounts receivable. Information for 2018 Adjusting Entries 8. Recognized...
Demonstration Problem 1-1 - The Accounting Cycle The events below apply to Computer Services Company (CSC)....
Demonstration Problem 1-1 - The Accounting Cycle The events below apply to Computer Services Company (CSC). Assume that all transactions involve receiving or paying cash. Transactions for the year 2015: 1. CSC was started when it acquired S9,000 cash by issuing common stock 2. The company borrowed $5,000 from a hank. 3. The company provided services to customers and received $4,000. 4. The company paid operating expenses of $2,900. 5. The company paid $500 in dividends to its stockholders. Transactions...
Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period Acquired...
Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period Acquired $69,000 cash from the issue of common stock. Purchased $3,000 of supplies on account. Purchased land that cost $36,000 cash. Paid $3,000 cash to settle accounts payable created in Event 2. Recognized revenue on account of $60,000. Paid $30,000 cash for other operating expenses. Collected $47,000 cash from accounts receivable. Information for 2018 Adjusting Entries Recognized accrued salaries of $4,100 on December 31, 2018....
Rosie Dry Cleaning was started on January 1, 2018. It experienced the following events during its first two years of operation: Events Affecting 2018 1. Provided $27,580 of cleaning services on account. 2. Collected $22.064 cash from accounts receivable. 3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting 2019 1. Wrote off a $207 account receivable that was determined to be uncollectible. 2. Provided...
Accounting for notes receivable and uncollectible accounts using
the percent of sales allowance method. The following transactions
apply to Hooper Co. for 2018, its first year of operations:
1. Issued $60,000 of common stock for cash.
2. Provided $90,000 of services on account.
3. Collected $78,000 cash from accounts
receivable.
4. Loaned $20,000 to Mosby Co. on November 30,
2018. The note had a one-year term to maturity and a 6 percent
interest rate.
5. Paid $26,000 of salaries expense...
Problem 5-23 Determining account balances: Percent of revenue method of accounting for uncollectible accounts LO 5-2 The following information is available for Quality Book Sales's sales on account and accounts receivable: $124,880 3,030 Accounts Receivable Balance, January 1, 2018 Allowance for Doubtful Accounts, January 1, 2018 Sales on Account, 2018 Collections of Accounts Receivable, 2018 809,270 840,735 After several collection attempts, Quality Book Sales wrote off $2,590 of accounts that could not be collected. Quality Book Sales estimates that 1.75...
*Do not use journal entries format*
Demonstration Problem 2-2: Accruals and Deferrals Part A Smith Company experienced the following accounting events during 2018: 1. Smith Company was started on January 1 when it issued common stock for $2,000 cash. 2. During the year, the company recognized $1,500 of consulting revenue on account. 3. The company collected $1,200 cash from accounts receivable. 4. Smith accrued salary expense during the year of $900. 5. Paid $700 of the salaries payable liability 6....
Roth Service Co. experienced the following transactions for
2018, its first year of operations:
Provided $68,000 of services on account.
Collected $38,500 cash from accounts receivable.
Paid $28,000 of salaries expense for the year.
Roth adjusted the accounts using the following information from
an accounts receivable aging schedule:
Number of Days Past Due
Amount
Percent Likely to Be Uncollectible
Allowance Balance
Current
$
15,400
0.01
0-30
5,400
0.05
31-60
3,900
0.10
61-90
1,100
0.30
Over 90 days
3,700
0.50
Required...
Alcor Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1. Acquired $62,000 cash from the issue of common stock. 2. Purchased $1,600 of supplies on account. 3. Purchased land that cost $22,000 cash. 4. Paid $1,600 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $46,000. 6. Paid $23,000 cash for other operating expenses. 7. Collected $40,000 cash from accounts receivable. Information for 2018 Adjusting Entries 8. Recognized...
Demonstration Problem 1-1 - The Accounting Cycle The events below apply to Computer Services Company (CSC). Assume that all transactions involve receiving or paying cash. Transactions for the year 2015: 1. CSC was started when it acquired S9,000 cash by issuing common stock 2. The company borrowed $5,000 from a hank. 3. The company provided services to customers and received $4,000. 4. The company paid operating expenses of $2,900. 5. The company paid $500 in dividends to its stockholders. Transactions...
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