Question

Please show your work!

Hope Company’s total assets were $5,380. Hope collected on $957 of account receivable that had previously been written off.  After the collection, Hope’s total assets will be $______

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At the beginning of 2018 Evan Company had a $1,795 balance in its accounts receivable account and a $462 balance in allowance for doubtful accounts. During 2018, Evan experienced the following events.

(1) Earned $2,697 of revenue on account.

(2) Collected $1,639 cash from accounts receivable.

(3) Wrote-off $612 of accounts receivable as uncollectible.

Evan estimates uncollectible accounts to be 3% of sales. Based on this information, the December 31, 2018 balance in the accounts receivable account is

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On June 1, 2018, Bodie Co. accepted a $7,500 face value note as evidence of a loan it made to T Company. The note had a 10 percent interest rate and a one-year term. What is the interest revenue recognized by Bodie in 2018?

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Ava Company sets bad debt expense at 2 percent of its sales. Ava reported total sales of $ 65,249. Before the adjustment, Ava had $509 credit balance in its allowance for doubtful accounts.

What is the ending balance in the Allowance for Doubtful Accounts that Ava report on its Balance Sheet?

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Duncan Corporation uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 4% uncollectible rate. Accounts more than 60 days are considered old and have a 39% uncollectible rate. Duncan’s Allowance for doubtful accounts currently has an unadjusted credit balance of $2,500.

If Duncan has $95,300 of young accounts and $10,800 of old accounts, how much should be reported in the adjusted Allowance for doubtful accounts?

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Hope Company’s total assets were $19,502. Hope determined that an $1,066 account receivable was uncollectible and wrote off the receivable. After the write off, Hope’s total assets will be $______

On December 31, 2018, Ava Company had an ending balance of $9,213 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $119.Ava estimates uncollectible accounts expense to be 9% of receivables. .Based on this information, the amount of uncollectible accounts expense shown on the 2018 income statement is $___________

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Answer 1

Answer to Question 1:

Total assets after collection = Total assets before collection + Cash collected
Total assets after collection = $5,380 + $957
Total assets after collection = $6,337

Answer to Question 2:

Ending accounts receivable = Beginning accounts receivable + Credit sales - Collection from accounts receivable - Accounts receivable write-off
Ending accounts receivable = $1,795 + $2,697 - $1,639 - $612
Ending accounts receivable = $2,241

Answer to Question 3:

In 2018, interest revenue for 7 months will be recognized.

Interest revenue = Face value * Interest rate * Interest rate
Interest revenue = $7,500 * 10% * (7/12)
Interest revenue = $437.50