Question
In: Accounting
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $...
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,987,830 Credit sales $ 3,847,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,165,641 debit Allowance for doubtful accounts $ 24,060 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 3% of credit sales. Bad debts are estimated to be 2% of total sales. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.
Solutions
Expert Solution
| Adjusting entry | |||||||
| I | Date | Account Title | Debit | Credit | |||
| Bad debt expense (3847000*3%) | 115,410 | Credit sales | 3,847,000 | ||||
| Allowance for doubtful accounts | 115,410 | ||||||
| II | Date | Account Title | Debit | Credit | Total Sales | ||
| Bad debt expense (5834830*2%) | 116,697 | Cash sales | 1,987,830 | ||||
| Allowance for doubtful accounts | 116,697 | Credit sales | 3,847,000 | ||||
| 5,834,830 | |||||||
| III | Date | Account Title | Debit | Credit | |||
| Bad debt expense (1165641 X 6%+24060) | 93,998 | ||||||
| Allowance for doubtful accounts | 93,998 | ||||||
ekkarill92 answered 2 years agoRelated Solutions
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $...
At December 31, Hawke Company reports the following results for
its calendar year. Cash sales $ 1,207,450 Credit sales $ 2,804,000
In addition, its unadjusted trial balance includes the following
items. Accounts receivable $ 849,612 debit Allowance for doubtful
accounts $ 15,110 debit
1. Prepare the adjusting entry to record bad
debts under each separate assumption.
Bad debts are estimated to be 2% of credit sales.
Bad debts are estimated to be 1% of total sales.
An aging analysis estimates...
At December 31, 2018, Hawke Company reports the following results for its calendar year. Cash sales...
At December 31, 2018, Hawke Company reports the following
results for its calendar year.
Cash sales
$
1,905,000
Credit sales
5,682,000
In addition, its unadjusted trial balance includes the following
items.
Accounts receivable
$
1,270,100
debit
Allowance for doubtful accounts
16,580
debit
Problem 7-2A Part 2
2. Show how Accounts Receivable and the
Allowance for Doubtful Accounts appear on its December 31, 2018,
balance sheet assuming that bad debts are estimated to be 1.5% of
credit sales.
At December 31, 2017, Hawke Company reports the following results for its calendar year.
At December 31, 2017, Hawke Company reports the following results for its calendar year.
Cash sales
$
1,558,750
Credit sales
2,963,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable
$
897,789
debit
Allowance for doubtful accounts
29,350
debit
At December 31, 2017, Hawke Company reports the following results for its calendar year.
Cash sales
$
1,558,750
Credit...
At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales...
At December 31, Folgeys Coffee Company reports the following
results for its calendar year.
Cash sales
$
919,000
Credit
sales
319,000
Its year-end unadjusted trial balance includes the following
items.
Accounts receivable
$
144,000
debit
Allowance for
doubtful accounts
6,900
debit
Prepare the adjusting entry to record bad debts expense assuming
uncollectibles are estimated to be (a) 6% of credit sales, (b) 4%
of total sales and (c) 9% of year-end accounts receivable.
Record Bad Debts
Expense assuming uncollectibles are...
At December 31, 2017, Hawke Company reports the followingresults for its calendar year.Cashsales...
At December 31, 2017, Hawke Company reports the following
results for its calendar year.Cash
sales$1,498,600Credit
sales3,827,000In addition, its unadjusted trial balance includes the following
items.Accounts receivable$1,159,581debitAllowance for
doubtful accounts13,710debit2. Show how Accounts Receivable and the
Allowance for Doubtful Accounts appear on its December 31, 2017,
balance sheet given the facts in part 1a.
Hampton Company reports the following information for its recent calendar year.
Hampton Company reports the following information for its recent calendar year.
Income Statement Data
Selected Year-End Balance Sheet Data
Sales
$
78,000
Accounts receivable increase
$
8,000
Expenses:
Inventory decrease
2,000
Cost of goods sold
38,000
Salaries payable increase
700
Salaries expense
14,000
Depreciation expense
8,000
Net income
$
18,000
Required:Prepare...
A company has the following results for the year ending December 31, 2020 Sales Revenue $4,995,000...
A company has the following results for the year ending December
31, 2020
Sales Revenue
$4,995,000
Cost of Goods Sold
$1,785,000
Salaries and Wages Expense
$602,000
Sales Commissions
$575,000
Sales Discounts
$490,000
Other Administrative Expenses
$307,000
Depreciation of Equipment
$189,000
Rent Revenue
$120,000
Advertising Expense
$85,000
Interest Expense
$55,000
Dividend Revenue
$30,000
Loss of Sale of Investments
$7,000
On September 1, 2020, the company decided to eliminate a
division. During 2020, losses relating to the eliminated division
total $253,000. The...
) York Company reported the following results for the year ended December 31, 2021, its first...
) York Company reported the following results for the
year ended December 31, 2021, its first year of
operations:
2021
Income (per books before income taxes) $ 1,800,000
Taxable
income
3,400,000
The disparity between book income and taxable income is
attributable to a temporary difference which will reverse in 2022.
What should York record as a net deferred tax asset or liability
for the year ended December 31, 2021, assuming that the enacted tax
rates in effect...
A firm reports sales of €50,000,000 for the year ended December 31, 2018. Its accounts receivable...
A firm reports sales of €50,000,000 for the year ended December
31, 2018. Its accounts receivable balances were €6,000,000 at
January 1, 2018 and €7,500,000 at December 31, 2018. The company’s
cash collections from sales (€) for 2018 is closest to:
a) 51,500,000 b)42,500,000 c)48,500,000
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company...
Required information
[The following information applies to the questions
displayed below.]
At December 31, Hawke Company reports the following results for its
calendar year.
Cash sales
$
1,255,520
Credit sales
$
2,859,000
In addition, its unadjusted trial balance includes the following
items.
Accounts receivable
$
866,277
debit
Allowance for doubtful accounts
$
26,980
debit
equired:
1. Prepare the adjusting entry to record bad debts
under each separate assumption.
Bad debts are estimated to be 2% of credit sales.
Bad debts...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Beasley Ball Bearings paid a $4 dividend last year. The dividend is expected to grow at...
- 7. In order to improve the network performance and security, ACLs is recommended. Please explain what...
- Noting that there has been an increasing interest in organic foodstuffs with increasing affluence, Mr Tommy...
- 1. the physical sites at which crossing over occurs are the.... A. chiasmata B. Centrioles C....
- Develop a Java program that determines the gross pay for an employee. The company pays hourly...
- Discuss the four evolving company orientations. Which orientation is considered most successful and why?
- Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate....
ADVERTISEMENT