Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2015...
Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2015 reveal the following. Ignore GST.
Credit sales (for year) $984,000
Credit sales returns and allowances (for year) 83,000
Accounts receivable (balance 30 June 2015) 300,500
Allowance for doubtful debts (credit balance 30 June 2015) 1,500
In the past, the company's yearly bad debts expense had been estimated at 2% of net credit sales revenue. It was decided to compare the current method with an ageing of the accounts receivable method. The following analysis was obtained with respect to the accounts receivable:
Balance % estimated uncollectable
Accounts not yet due $161,600 1/2
Accounts overdue: 10–30 days 56,100 2
31–60 days 40,500 10
61–120 days 23,400 25
121 days and over 18,900 40
TOTAL $300,500
Determine the balance in the allowance for doubtful debts account under both methods.
1.Allowance for doubtful debts
(Net credit sales method)
2. Allowance for doubtful debts
(Ageing of accounts receivable method)
USING T ACCOUNTS
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Great Outdoors Ltd sells outdoor furniture settings on credit.
The accounting records at 30 June 2015...
Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2015 reveal the followi...
Great Outdoors Ltd sells outdoor furniture settings on credit. The accounting records at 30 June 2015 reveal the following. Ignore GST. Credit sales (for year) $984,000 Credit sales returns and allowances (for year) 83,000 Accounts receivable (balance 30 June 2015) 300,500 Allowance for doubtful debts (credit balance 30 June 2015) 1,500 n the past, the company's yearly bad debts expense had been estimated at 2% of net credit sales revenue. It was decided to compare the current method with an...
I understand part A, but I do not understand B and C. I only need B and C. If possible, can you give a detail solution. Thank you. Week 9: Accounts Receivable Lecture Demonstration Bad Debts Exercise...
I understand part A, but I do not understand B and C. I only
need B and C. If possible, can you give a detail solution. Thank
you.
Week 9: Accounts Receivable Lecture Demonstration Bad Debts Exercise Doubtful Debts-Net Credit Sales and Ageing Methods Recording transactions for bad and doubtful debts Transactions for Bradford Ltd's Accounts Receivable for the year ending 30 June 2018 are listed below. On 1 July of the previous year, the opening balance of the Allowance...
QUESTION 1 David Pty Ltd has accounts receivable of $68,300 at 31 March 2016. An analysis...
QUESTION 1 David Pty Ltd has accounts receivable of $68,300 at 31 March 2016. An analysis of the accounts shows the following amounts. Balance, 31 March Month of sale 2016 2015 March February December and January November and October $39,100 12,800 9,300 7,100 $68,300 $74,400 7,500 2,400 1,100 $85,400 Credit terms are 2/7, n/30. At 31 March 2016 there is a $1,690 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis...
The following information was extracted from the records of Bulb Ltd as at 30 June 2013:...
The following information was extracted from the records of
Bulb Ltd as at 30 June 2013:
The depreciation rates for accounting and taxation are 15% and
25% respectively. Deposits are taxable when received, and warranty
costs are deductible when paid. An allowance for doubtful debts of
$25 000 has been raised against accounts receivable for accounting
purposes, but such debts are deductible only when written off as
uncollectable.
Required
1. Calculate the temporary differences for Bulb Ltd as at 30...
Oblem 4 (16 points) e Crowe Company offers 30 days of credit to its customers. At the end of the ...
oblem 4 (16 points) e Crowe Company offers 30 days of credit to its customers. At the end of the year, bad de pense is estimated and the allowance for uncollectible accounts is adjusted based on the agin ts receivable. The company began 2022 with the following balances in its accounts: Accounts Receivable Allowance for uncollectibles $350,000 $30,000 During 2022, sales on credit were $1,300,000, cash collections from customers were $1,253,000, write-offs were $25,000, and $1,000 in previously written-off accounts...
D) $3,360 12. Under the allowance method of accounting for credit losses, the entry to write...
D) $3,360 12. Under the allowance method of accounting for credit losses, the entry to write off a specific account: A) Will increase total assets B) Debits Bad Debts Expense and credits Allowance for Doubtful Accounts C) is the same as the entry to write off a specific account under the direct write-off method D) Does not affect net income or total assets 13. Boulder Beaver Company had a $150.000 beginning balance in Accounts Receivable and a $6,000 credit balance...
IN-CLASS ASSIGNMENTS NOVEMBER 6, 2019 Journalize the following transactions in the accounts of Diners Interiors, a...
IN-CLASS ASSIGNMENTS NOVEMBER 6, 2019 Journalize the following transactions in the accounts of Diners Interiors, a restaurant supply company that uses the Allowance Method of accounting for uncollectable receivables: a) On April 2, sold merchandise on account to Peking Palace Company for $41.900 The cost of merchandise sold was $24,850 b) On June 9, received from Peking Palace $10,000 payment on account and wrote off the remainder owed on the sale of April 2 as uncollectable c) On October 31...
cash: 732,000 A/R: 1,220,000 Inventory: 1,708,000 Supplies: 476,000 over 90: 12,000 61-90: 38,000 31-60: 86,000 1-30:...
cash: 732,000
A/R: 1,220,000
Inventory: 1,708,000
Supplies: 476,000
over 90: 12,000
61-90: 38,000
31-60: 86,000
1-30: 254,000
not yet: 830,000
cash sales: 2,250,000
Credit sales: 7,150,000
Makeup of Current Assets Cash Accounts Receivable Supplies Value ($) Accounts Receivable by Age Over 90 days past due 61-90 days past due 31-60 days past due 1-30 days past due Not yet due mie $0 $200,000 $800,000 $400,000 Accounts Receivable ($) $200,000 $600,000 $800,000 $400,000 Accounts Receivable ($) Percent Uncollectible by Age Makeup...
1. At the start of the current year, Dave Company had a credit balance in the...
1. At the start of the current year, Dave Company had a credit balance in the Allowance for Doubtful Accounts of $6,000. At the end of the year, a provision of 2% of sales was made for estimated bad debts. Sales for the year were $2,000,000 and $37,000 of accounts receivable were written off as worthless. No recoveries of accounts previously written off were made dring the year. After the year-end bad debts adjustment, The year-end financial statements should show:...
The manager asks you to assist her with the data analytics on bad debts expense at...
The manager asks you to assist her with the data analytics on bad debts expense at year-end. To do this, you access the following Tableau Dashboard for your company. Makeup of Current Assets Cash Accounts Receivable Inventory Supplies Value ($) Accounts Receivable by Age Over 90 days past due 61.90 days past due 31-60 days past due 1-30 days past due Not yet due $200,000 $600,000 $800,000 $400,000 Accounts Receivable ($) Percent Uncollectible by Age Makeup of Total Sales 70%...
I understand part A, but I do not understand B and C. I only
need B and C. If possible, can you give a detail solution. Thank
you.
Week 9: Accounts Receivable Lecture Demonstration Bad Debts Exercise Doubtful Debts-Net Credit Sales and Ageing Methods Recording transactions for bad and doubtful debts Transactions for Bradford Ltd's Accounts Receivable for the year ending 30 June 2018 are listed below. On 1 July of the previous year, the opening balance of the Allowance...
QUESTION 1 David Pty Ltd has accounts receivable of $68,300 at 31 March 2016. An analysis of the accounts shows the following amounts. Balance, 31 March Month of sale 2016 2015 March February December and January November and October $39,100 12,800 9,300 7,100 $68,300 $74,400 7,500 2,400 1,100 $85,400 Credit terms are 2/7, n/30. At 31 March 2016 there is a $1,690 credit balance in allowance for doubtful debts before adjustment. The entity uses the ageing of accounts receivable basis...
The following information was extracted from the records of
Bulb Ltd as at 30 June 2013:
The depreciation rates for accounting and taxation are 15% and
25% respectively. Deposits are taxable when received, and warranty
costs are deductible when paid. An allowance for doubtful debts of
$25 000 has been raised against accounts receivable for accounting
purposes, but such debts are deductible only when written off as
uncollectable.
Required
1. Calculate the temporary differences for Bulb Ltd as at 30...
oblem 4 (16 points) e Crowe Company offers 30 days of credit to its customers. At the end of the year, bad de pense is estimated and the allowance for uncollectible accounts is adjusted based on the agin ts receivable. The company began 2022 with the following balances in its accounts: Accounts Receivable Allowance for uncollectibles $350,000 $30,000 During 2022, sales on credit were $1,300,000, cash collections from customers were $1,253,000, write-offs were $25,000, and $1,000 in previously written-off accounts...
D) $3,360 12. Under the allowance method of accounting for credit losses, the entry to write off a specific account: A) Will increase total assets B) Debits Bad Debts Expense and credits Allowance for Doubtful Accounts C) is the same as the entry to write off a specific account under the direct write-off method D) Does not affect net income or total assets 13. Boulder Beaver Company had a $150.000 beginning balance in Accounts Receivable and a $6,000 credit balance...
IN-CLASS ASSIGNMENTS NOVEMBER 6, 2019 Journalize the following transactions in the accounts of Diners Interiors, a restaurant supply company that uses the Allowance Method of accounting for uncollectable receivables: a) On April 2, sold merchandise on account to Peking Palace Company for $41.900 The cost of merchandise sold was $24,850 b) On June 9, received from Peking Palace $10,000 payment on account and wrote off the remainder owed on the sale of April 2 as uncollectable c) On October 31...
cash: 732,000
A/R: 1,220,000
Inventory: 1,708,000
Supplies: 476,000
over 90: 12,000
61-90: 38,000
31-60: 86,000
1-30: 254,000
not yet: 830,000
cash sales: 2,250,000
Credit sales: 7,150,000
Makeup of Current Assets Cash Accounts Receivable Supplies Value ($) Accounts Receivable by Age Over 90 days past due 61-90 days past due 31-60 days past due 1-30 days past due Not yet due mie $0 $200,000 $800,000 $400,000 Accounts Receivable ($) $200,000 $600,000 $800,000 $400,000 Accounts Receivable ($) Percent Uncollectible by Age Makeup...
The manager asks you to assist her with the data analytics on bad debts expense at year-end. To do this, you access the following Tableau Dashboard for your company. Makeup of Current Assets Cash Accounts Receivable Inventory Supplies Value ($) Accounts Receivable by Age Over 90 days past due 61.90 days past due 31-60 days past due 1-30 days past due Not yet due $200,000 $600,000 $800,000 $400,000 Accounts Receivable ($) Percent Uncollectible by Age Makeup of Total Sales 70%...
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