Requirement:A
Current Assets | ||
Accounts Receivables | $ 31,400 | |
Less: Allowance for uncollectible accounts | $ (7,750) | $ 23,650 |
Working:
Allowance for Uncollectible Accounts | Accounts Receivables | |||||||
Accounts Written Off | $ 5,300 | Beginning balance | $ - | Beginning balance | $ - | Collection | $ 716,000 | |
Bad Debts | $ 7,330 | Sales | 733000 | Writeoff | $ 5,300 | |||
End Balance | $ 2,030 | End Balance | $ 11,700 | |||||
Allowance for Doubtful Accounts | Accounts Receivables | |||||||
Accounts Written Off | $ 5,800 | Beginning balance | $ 2,030 | Beginning balance | $ 11,700 | Collection | $ 842,000 | |
Bad Debts | $ 8,570 | Sales | $ 857,000 | Writeoff | $ 5,800 | |||
End Balance | $ 4,800 | End Balance | $ 20,900 | |||||
Allowance for Doubtful Accounts | Accounts Receivables | |||||||
Accounts Written Off | $ 6,500 | Beginning balance | $ 4,800 | Beginning balance | $ 20,900 | Collection | $ 928,000 | |
Bad Debts | $ 9,450 | Sales | $ 945,000 | Writeoff | $ 6,500 | |||
End Balance | $ 7,750 | End Balance | $ 31,400 |
Requirement:B
2018 | Bad Debts Expense[733000*1/100] | $ 7,330 |
2019 | Bad Debts Expense [857000*1/100] | $ 8,570 |
2020 | Bad Debts Expense [945000*1/100] | $ 9,450 |
Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Weiss Company, which has been in business...
Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Barth Company, which has been in business for three years, makes all of its sales on credit and does not offer cash discounts. Its credit sales, customer collections, and write-offs of uncollectible accounts for its first three years follow: Year Sales 2015 $375,500 2016 438.000 2017 486,000 Accounts Collections Written Off $366,500 $2,650 432,000 2.900 469,000 3.250 Barth uses the allowance method of recognizing credit losses that provides for such losses...
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...
Bad Debt Practice Exercises 26. The percentage of receivables method for estimating uncollectible accounts focuses on a net realizable value b. the relationship between accounts receivable and bad debts expense c. income statement relationships d. the relationship between sales and accounts receivable 27. Holman Company uses the percentage of credit sales method. Cash sales are $1,000,000 and credit sales are $4,000,000. Management estimates that 1% of sales will be bad. What adjusting entry will Homan Company make to record the...
NAME I Accounts Receivable A) On November 30, Penny Co. had a $41,000 balance in Accounts Receivable and a $3,584 credit balance in the Allowance for Uncollectible Accounts During December, Penny made credit sales of $200.000. December collections on account were $168.000, and write-offs of uncollectible accounts totaled $2,910. Uncollectible account expense is estimated as 1% of credit sales. No sales returns are expected and ignore cost of goods sold. REQUIRED: Journalize sales, collections, write-offs of uncollectables, and uncollectible-account expense...
illustste t accounts for accounts receivable and allowance for bad debts A) On November 30, Penny Cohada $41.000 halange in Accounts Recivable and a $3,584 credit balance in the Allowance for Uncollectible Accounts. During December. Pey made credit sales of $200,000. December collections on account were $168.000, and write-offs of uncollectible accounts totaled $2.910. Uncollectible account expense is estimated as 15 of credit sales. No sales returns are expected and ignore cost of goods sold REQUIRED: Journalire les collections, write-offs...
Learning Objectives 1,3 P9-30A Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet Delta Watches completed the following selected transactions during 2018 and 2019; 2. Net AR $119,800 2018 Estimated that bad debts expense for the year was 2% of credit sales of $450,000 and recorded that amount as expense. The company uses the allowance method Dec. 31 31 2019 Jan. 17 Made the closing entry for bad debts expense Sold merchandise inventory...
AP6-5B (Accounts receivable and uncollectible accounts-percentage of credit sales method) Majestic Equipment Sales Company, which sells only on account, had a $120,000 balance in its Accounts Receivable and a $4,200 balance in its Allowance for Doubtful Accounts on December 31, 2019. During 2020, the company's sales of equipment were $820,000 and its total cash collections from customers were $780,000. During the year, the company concluded that customers with accounts totalling $6,000 would be unable to pay, and wrote these receivables...
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...
Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accounts Receivable Orange Company’s December 31, 2019, balances related to accounts receivable follow. Accounts receivable $80,000 Dr. Allowance for doubtful accounts 4,000 Cr. During 2020, $9,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for 2020 are $240,000, of which $40,000 are cash sales. A total of $180,000 was collected on account during 2020. a. Assuming that Orange uses...
Estimating Bad Debts Expense and Reporting of Receivables At December 31, 2019, Sunil Company had a balance of $375,000 in its accounts receivable and an unused balance of $4,200 in its allowance for uncollectible accounts. The company then aged its accounts as follows: Current $304,000 0-60 days past due 44,000 61-180 days past due 18,000 Over 180 days past due 9.000 Total accounts receivable $375,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 0-60...