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Raintree Cosmetic | |||||
Workings for Answer 1 | |||||
Calculation of opening Gross Receivables: | Amount $ | ||||
Net Receivables | 432,000.00 | ||||
Add: Allowance for uncollectible accounts | 30,000.00 | ||||
Net Gross Receivables | 462,000.00 | ||||
Answer 1 | |||||
T Account- Accounts Receivable | |||||
Date | Account | Debit $ | Date | Account | Credit $ |
Opening Balance | 462,000.00 | Cash | 1,830,000.00 | ||
Sales | 1,750,000.00 | Allowance for uncollectible accounts | 35,000.00 | ||
Closing Balance | 347,000.00 | ||||
2,212,000.00 | 2,212,000.00 | ||||
So balance in accounts receivable as on 31st Dec 2018 is $ 347,000. | |||||
Workings for Answer 2 a and b. | |||||
Unadjusted- Allowance for uncollectible accounts | Amount $ | ||||
Allowance for uncollectible accounts- Opening | 30,000.00 | ||||
Less: accounts receivable written off | 35,000.00 | ||||
Unadjusted- Allowance for uncollectible accounts | (5,000.00) | ||||
Answer 2 a | |||||
Bad debt expense at year end: | |||||
Credit Sales | 1,750,000.00 | ||||
Allowance % | 3% | ||||
Allowance amount | 52,500.00 | ||||
Less: Unadjusted- Allowance for uncollectible accounts | (5,000.00) | ||||
Bad debt expense at year end: | 57,500.00 | ||||
Answer 2 b | |||||
Age Group | Year end Receivables | % of Year end Receivables | Receivables | % Uncollectible | Allowance amount |
0-60 days | 347,000.00 | 65% | 225,550.00 | 4% | 9,022.00 |
61-90 days | 347,000.00 | 20% | 69,400.00 | 15% | 10,410.00 |
91-120 days | 347,000.00 | 10% | 34,700.00 | 25% | 8,675.00 |
Over 120 days | 347,000.00 | 5% | 17,350.00 | 40% | 6,940.00 |
Total | 347,000.00 | 35,047.00 | |||
Bad debt expense at year end: | |||||
Allowance amount | 35,047.00 | ||||
Less: Unadjusted- Allowance for uncollectible accounts | (5,000.00) | ||||
Bad debt expense at year end: | 40,047.00 |
Raintree Cosmetic Company sells its product to customers on a credit basis. An adjusting entry for...
Raintree Cosmetic Company sells its product to customers on a credit basis. An adjusting entry for uncollectible accounts expense is recorded only at December 31, the company's fiscal year-end. The 2018 balance sheet disclosed the following: Current Assets: Accounts Receivable, 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. An aging of receivable at December 31, 2018, reveals the following: Age...
Raintree Cosmetic Company sells its product to customers on a credit basis. An adjusting entry for uncollectible accounts expense is recorded only at December 31, the company's fiscal year-end. The 2018 balance sheet disclosed the following: Current Assets: Accounts Receivable, net of allowance for uncollectible accounts of $30,000 $432,000 During 2019, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. An aging of receivable at December 31, 2019, reveals the following: Age...
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 $30,000 $432,000 During 2021, 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 customer whose account was written off...
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: $ 487.000 Receivables, net of allowance for uncollectible accounts of $41,000 During 2021, credit sales were $1,805,000, cash collections from customers $1,885,000, and $50,000 in accounts receivable were written off. In addition, $4,100 was collected from a customer whose account was written...
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 $33,000 $ 447,000 During 2021, credit sales were $1,765,000, cash collections from customers $1,845,000, and $38,000 in accounts receivable were written off. In addition, $3,300 was collected from a customer whose account was written...
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 $46,000 512,000 During 2021, credit sales were $1,830,000, cash collections from customers $1,910,000, and $55,000 in accounts receivable were written off. In addition, $4,600 was collected from a customer whose account was written off...
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 $36,000 $462,000 During 2021, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off...
I just need help with requirement three! 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 $30,000 $432,000 During 2021, 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...
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...
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...