Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Collections on accoun...
- Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Collections on accounts amounted to $300,000. Bad Debt rate is 5%. Company uses percent of sale method. Book entry to recognize bad debts.
Homework Answers
| Genral Journal | Debit | Credit |
| Bad debts expense | 20,000 | |
| Allowance for Doubtful Accounts | 20,000 | |
| (400,000*5%) |
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Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Collections on accoun...
2. Credit sales were made in the amount of $400,000. Cash sales were made in the...
2. Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Collections on accounts amounted to $300,000. Bad Debt rate is 5%. Company uses percent of sale method. Book entry to recognize bad debts.
Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Bad debt...
Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Bad debt rate is 5%. Company uses percent of sale method. Book entry to recognize bad debts.
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales S422,000 111,000...
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales S422,000 111,000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 300,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 2.7% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. Assume the same facts as in #1 except Luke's Hobbies uses the percent-of-receivable method. Experience suggests that...
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales $422.000 111.000 Collection on...
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales $422.000 111.000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 300,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 2.7% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. 2. Assume the same facts as in #1 except Luke's Hobbies uses the percent-of-receivable method. Experience suggests...
What would be the adjusting journal entry (what account to debit and credit, and the amount)...
What would be the adjusting journal entry (what account to debit and credit, and the amount) in each of the following independent scenarios ( no narrative response required, only the journal entry and amounts): a. The Allowance for Bad Debt account has a credit balance of $2,000 on Sept. 30. The company uses the Percent-of-Sales method to estimate uncollectible accounts, estimating 5% of their sales as bad debts. October sales totaled $600,000. b. The Allowance for Bad Debt account has...
Question #3 w During 2015, credit sales were $1,750,000. cash collections from customers $1830.000 and $35.000 in ac...
Question #3
w During 2015, credit sales were $1,750,000. cash collections from customers $1830.000 and $35.000 in accounts receivable were en of in edition, $3,000 was collected from a customer whose account was written off in 2017 An aging of accounts receivable at December 31, 2018 reveals the following Dercentage of Year End Receivables In Group Percent Uncollectible Age Group Duer 120 days Required: 1. Prepare Summary journal entines to account for the 2018 write-offs and the collection of the...
-Exercise Accounts receivable, bad debts, credit sales, and cash collection 5.3 analysis At the beginning of...
-Exercise Accounts receivable, bad debts, credit sales, and cash collection 5.3 analysis At the beginning of the year, accounts receivable were $72,000 and th LOS allowance for bad debts was $5,750. During the year, sales (all on account) We $300,000, cash collections were $290.000, bad debts expense totaled $7,100. and $6,000 of accounts receivable were written off as bad debts. Required: Calculate the balances at the end of the year for the Accounts Receivable and Allow ance for Bad Debts...
Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total,...
Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?Exercise 8-1 Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: AprilMayJuneTotalBudgeted sales (all on account)$300,000$500,000$200,000$1,000,000From past experience, the company has learned...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month...
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 thre
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...
2. Credit sales were made in the amount of $400,000. Cash sales were made in the amount of $200,000. Collections on accounts amounted to $300,000. Bad Debt rate is 5%. Company uses percent of sale method. Book entry to recognize bad debts.
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales S422,000 111,000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 300,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 2.7% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. Assume the same facts as in #1 except Luke's Hobbies uses the percent-of-receivable method. Experience suggests that...
During the year, Luke's Hobbies had the following: Net Sales Cash Sale Credit Sales $422.000 111.000 Collection on Credit sales Beginning Accounts Receivable Ending Accounts Receivable 300,000 54,000 Allowance for Doubtful Accounts 2,700 Credit 1. Experience suggests that bad debts will amount to 2.7% of credit sale. The company uses the percent-of-sales allowance method to account for uncollectibles. Journalize the Bad Debt Expense. 2. Assume the same facts as in #1 except Luke's Hobbies uses the percent-of-receivable method. Experience suggests...
Question #3
w During 2015, credit sales were $1,750,000. cash collections from customers $1830.000 and $35.000 in accounts receivable were en of in edition, $3,000 was collected from a customer whose account was written off in 2017 An aging of accounts receivable at December 31, 2018 reveals the following Dercentage of Year End Receivables In Group Percent Uncollectible Age Group Duer 120 days Required: 1. Prepare Summary journal entines to account for the 2018 write-offs and the collection of the...
-Exercise Accounts receivable, bad debts, credit sales, and cash collection 5.3 analysis At the beginning of the year, accounts receivable were $72,000 and th LOS allowance for bad debts was $5,750. During the year, sales (all on account) We $300,000, cash collections were $290.000, bad debts expense totaled $7,100. and $6,000 of accounts receivable were written off as bad debts. Required: Calculate the balances at the end of the year for the Accounts Receivable and Allow ance for Bad Debts...
Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th?Exercise 8-1 Schedule of Expected Cash Collections [LO8-2] Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: AprilMayJuneTotalBudgeted sales (all on account)$300,000$500,000$200,000$1,000,000From past experience, the company has learned...
Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month...
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