Question

In: Accounting

Accounts receivable transactions are provided below for J Pharoah Co. Dec. 31, 2020 The company estimated...

Accounts receivable transactions are provided below for J Pharoah Co.

Dec. 31, 2020 The company estimated that 4% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $661,000 and $2,700 (debit), respectively.

Mar. 5, 2021 The company determined that R. Mirza’s $3,500 account and D. Wight’s $6,900 account were uncollectible. The company’s accounts receivable were $691,400 before the accounts were written off.

June 6, 2021 Wight paid the amount that had been written off on March 5. The company’s accounts receivable were $650,600 prior to recording the cash receipt for Wight.

1) Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry. Allowance for Doubtful Accounts Date Explanation Ref. Debit Credit Balance Dec. 31, 2020 Balance unadjusted Debit Dec. 31, 2020 AJE Mar. 5, 2021 Write off Mirza Mar. 5, 2021 Write off Wight June 6, 2021 Reverse write off

Solutions

Expert Solution

Allowance for Doubtful Accounts
Debit Credit Balance
Unadjusted Balance $               -2,700
Dec. 31, 2020 Bad Debt $              29,140 $              26,440
Mar 5, 2021 Write off-Mirza $                3,500 $              22,940
Mar 5, 2021 Write off-Wight $                6,900 $              16,040
Jun 6, 2021 Account Restated-Wight $                6,900 $              22,940

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Accounts receivable transactions are provided below for J Crane Co. Dec. 31, 2020 The company estimated...
Accounts receivable transactions are provided below for J Crane Co. Dec. 31, 2020 The company estimated that 3% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $684,000 and $3,000 (debit), respectively. Mar. 5, 2021 The company determined that R. Mirza’s $3,100 account and D. Wight’s $6,900 account were uncollectible. The company’s accounts receivable were $719,000 before the accounts were written off. June 6, 2021 Wight paid the amount...
An aging analysis of Pharoah Company’s accounts receivable at December 31, 2020 and 2021, showed the...
An aging analysis of Pharoah Company’s accounts receivable at December 31, 2020 and 2021, showed the following: Accounts Receivable Number of Days Outstanding Estimated %Uncollectible 2021 2020 0–30 days 3% 126,000 155,000 31–60 days 7% 31,500 77,500 61–90 days 13% 63,000 46,500 Over 90 days 40% 94,500 31,000 Total    $315,000 $310,000 Additional information: 1. At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $6,200. 2. In 2021, $26,700 of accounts was written off...
On Dec 31, 2016, Rawda Company had accounts receivable of $750,000 and allowance for doubtful accounts...
On Dec 31, 2016, Rawda Company had accounts receivable of $750,000 and allowance for doubtful accounts that had a debit balance of $10,000. The company uses an aging schedule (aging method) to estimate its uncollectible accounts as shown in the following table: # of Days Outstanding Amounts Estimated % Uncollectible 0-30 $     200,000 2% 31-60 200,000 4% 61-90 200,000 6% Over 90 150,000 8% Requirements: What is the required balance for the allowance of doubtful accounts on Dec 31, 2016?...
Provided below is the incomplete income statement (for 2020) and balance sheet (Dec 31 2019 and...
Provided below is the incomplete income statement (for 2020) and balance sheet (Dec 31 2019 and Dec 31 2020) for SCOTTY Inc. SCOTTY Inc. Income Statement For the year ended Dec. 21, 2020 Net sales $8,953 Cost of goods sold $5,865 Depreciation $? EBIT $? Interest paid $675 Earnings before taxes $? Taxes $400 Net income $705 Dividends paid $? Addition to retained earnings $450 SCOTTY Inc. Balance Sheet as at December 31, 2019 and 2020 2019 2020 2019 2020...
As of December 31, 2020, Gill Co. reported accounts receivable of $226,000 and an allowance for...
As of December 31, 2020, Gill Co. reported accounts receivable of $226,000 and an allowance for uncollectible accounts of $8,600. During 2021, accounts receivable increased by $22,500, (that change includes $7,700 of bad debts that were written off). An analysis of Gill Co.'s December 31, 2021, accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. Bad debt expense for 2021 would be: Multiple Choice ·          $1,585. ·          $7,700. ·          $2,485. ·          None of these...
On December 31, 2020, Pina Colada Corp. estimated that 4% of its net accounts receivable of...
On December 31, 2020, Pina Colada Corp. estimated that 4% of its net accounts receivable of $455,200 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. The allowance account had a zero balance before adjustment on December 31, 2020. On May 11, 2021, Pina Colada Corp. determined that the Jeff Shoemaker account was uncollectible and wrote off $2,276. On June 12, 2021, Shoemaker paid the amount previously written off. Prepare the journal entries...
Kyla Co. prepared an aging of its accounts receivable at December 31, 2020 and determined that...
Kyla Co. prepared an aging of its accounts receivable at December 31, 2020 and determined that the net realizable value of the receivables was $580,000. Additional information for calendar 2020 follows: Allowance for doubtful accounts, Jan 1 $68,000 (cr.) Uncollectible account written off during year 46,000 Bad debt expense for 2020 28,000 Uncollectible accounts recovered during year 10,000            At the year end December 31, 2020, Kyla Co.’s Accounts receivable balance should be 1) $640,000.00 2) $658,000.00 3) $644,000.00 4)...
Recording and Reporting Accounts Receivable Transactions and Write-Offs Provided below is a chronological log of a...
Recording and Reporting Accounts Receivable Transactions and Write-Offs Provided below is a chronological log of a sale on credit by Lumber Inc. to Anton. Dec. 24, 2016—Sold merchandise to Anton, $2,000, terms 2/10, n/30. Jan. 2, 2017—Anton paid half of the receivable and took the discount. Dec. 31, 2019—Anton has failed to pay the receivable and Lumber Inc. wrote Anton’s account off as uncollectible. Dec. 31, 2021—Anton unexpectedly paid its debt to Lumber Inc. in full, including 6% annual interest...
Dec. 31, 2015 Dec. 31, 2014 Assets Cash and cash equivalents 129,852 593,175 Accounts receivable, net...
Dec. 31, 2015 Dec. 31, 2014 Assets Cash and cash equivalents 129,852 593,175 Accounts receivable, net 433,638 279,835 Inventories 783,031 536,714 Prepaid expenses and other current assets 152,242 87,177 Deferred income taxes 52,498 Total current assets 1,498,763 1,549,399 Property and equipment, net 538,531 305,564 Goodwill 585,181 123,256 Intangible assets, net 75,686 26,230 Deferred income taxes 92,157 33,570 Other long-term assets 78,582 57,064 Total assets 2,868,900 2,095,083 Liabilities and Stockholders Equity Accounts payable 200,460 210,432 Accrued expenses 192,935 147,681 Current maturities...
Dec. 31, 2015 Dec. 31, 2014 Assets Cash and cash equivalents 129,852 593,175 Accounts receivable, net...
Dec. 31, 2015 Dec. 31, 2014 Assets Cash and cash equivalents 129,852 593,175 Accounts receivable, net 433,638 279,835 Inventories 783,031 536,714 Prepaid expenses and other current assets 152,242 87,177 Deferred income taxes 52,498 Total current assets 1,498,763 1,549,399 Property and equipment, net 538,531 305,564 Goodwill 585,181 123,256 Intangible assets, net 75,686 26,230 Deferred income taxes 92,157 33,570 Other long-term assets 78,582 57,064 Total assets 2,868,900 2,095,083 Liabilities and Stockholders Equity Accounts payable 200,460 210,432 Accrued expenses 192,935 147,681 Current maturities...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT