Question
In: Accounting
The December 31, 2018 balance sheet of Jenson Company had Accounts Receivable of $450,000 and a...
- The December 31, 2018 balance sheet of Jenson Company had Accounts Receivable of $450,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During 2019, the following transactions occurred:
Sales on account $1,600,000
Sales returns and allowances, $75,000
Collections from customers, $1,450,000
Accounts written off $35,000
Previously written off accounts of $6,000 were collected
(a) Journalize the 2019 transactions. Disregard any impact on inventory.
(b) If Jenson uses the percentage of sales basis to estimate bad debts expense and anticipates 2% of the 2019 net sales to be uncollectible, what is the adjusting entry at December 31, 2019?
(c) If the Jenson uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 4% of the 2019 year-end balance in accounts receivable, what is the adjusting entry at December 31, 2019? Use the T accounts forms provided below for your analysis.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Recognition and Valuation of Accounts Receivable The December 31, 2018 balance sheet of the Kramer Company...
Recognition and Valuation of Accounts
Receivable
The December 31, 2018 balance sheet of
the Kramer Company had Accounts Receivable of 650,000 and a credit
balance in Allowance for Doubtful Accounts of $33,000. During 2019,
the following transactions occurred: sales on account $1,550,000;
sales returns and allowances, $100,000; collections from customers,
$1,250,000; accounts written off, $35,000; previously written off
accounts of $8,000 were collected.
Instructions
(a) Journalize the 2019
transactions.
(b) If the company uses
the percentage of receivables basis to...
The December 31, 2016, balance sheet of the Kramer Company had Accounts Receivable of $650,000 and...
The December 31, 2016, balance sheet of the Kramer Company had
Accounts Receivable of $650,000 and a credit balance in Allowance
for Doubtful Accounts of $33,000. During 2017, the following
transactions occurred: sales on account $1,550,000; sales returns
and allowances, $100,000; collections from customers, $1,250,000;
accounts written off, $35,000; previously written off accounts of
$8,000 were collected.
Journalize the 2017 transactions. (Credit account
titles are automatically indented when the amount is entered. Do
not indent manually.)
Account Titles and Explanation...
The December 31, 2017 balance sheet of Barone Company had Accounts Receivable of $400,000 and a...
The December 31, 2017 balance sheet of Barone Company had
Accounts Receivable of $400,000 and a credit balance in Allowance
for Doubtful Accounts of $32,000. During 2018, the following
transactions occurred: sales on account $1,500,000; sales returns
and allowances, $50,000; collections from customers, $1,250,000;
accounts written off $36,000; previously written off accounts of
$6,000 were collected.
If the company uses the percentage of receivables basis to
estimate bad debt expense and determines that uncollectible
accounts are expected to be 8%...
The December 31, 2021, balance sheet of the Windsor, Inc. had Accounts Receivable of $670,000 and...
The December 31, 2021, balance sheet of the Windsor, Inc. had
Accounts Receivable of $670,000 and a credit balance in Allowance
for Doubtful Accounts of $30,000. During 2022, the following
transactions occurred: sales on account $1,558,000; sales returns
and allowances, $171,000; collections from customers, $1,257,000;
accounts written off, $39,000; previously written off accounts of
$9,000 were collected.
Journalize the 2022 transactions. (Credit account
titles are automatically indented when the amount is entered. Do
not indent manually.)
Account Titles and Explanation...
The December 31, 2021, balance sheet of the Vaughn Manufacturing had Accounts Receivable of $730,000 and...
The December 31, 2021, balance sheet of the Vaughn Manufacturing
had Accounts Receivable of $730,000 and a credit balance in
Allowance for Doubtful Accounts of $34,000. During 2022, the
following transactions occurred: sales on account $1,559,000; sales
returns and allowances, $130,000; collections from customers,
$1,340,000; accounts written off, $38,000; previously written off
accounts of $9,000 were collected.
Journalize the 2022 transactions. (Credit account
titles are automatically indented when the amount is entered. Do
not indent manually.)
Account Titles and Explanation...
The December 31, 2021, balance sheet of the Swifty Corporation had Accounts Receivable of $680,000 and...
The December 31, 2021, balance sheet of the Swifty Corporation
had Accounts Receivable of $680,000 and a credit balance in
Allowance for Doubtful Accounts of $33,000. During 2022, the
following transactions occurred: sales on account $1,554,000; sales
returns and allowances, $166,000; collections from customers,
$1,253,000; accounts written off, $38,000; previously written off
accounts of $9,000 were collected.
Journalize the 2022 transactions. AND If the company uses the
percentage of receivables basis to estimate bad debt expense and
determines that uncollectible...
NYZ Corporation had the following Balance Sheet December 31, 2018 ASSETS Cash. $50,000 Accounts Receivable 80,000...
NYZ Corporation had the following
Balance Sheet
December 31, 2018
ASSETS
Cash. $50,000
Accounts Receivable 80,000
Inventory 70,000
Total Current Assets 150,000
Property, Plant and Equipment (net) 200,00
Long Term Investments 50,000
Goodwill 100,000
Total Assets $500,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable $130,000
Accrued Expenses $120,000
Total Current Liabilities $250,000
Long-Term debt $150,000
Stockholders' Equity
common stock 10,000
Paid-In Capital 40,000
Retained Earnings 50,000
Total Liabilities & Stockholders' Equity $500,000
ALL REQUIRED
ABC Company is thinking about purchasing...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible...
Mosaic’s Company balance sheet at December 31, 2018, reported
the following:
Accounts
receivable...........................................$2,500,000
Allowance for uncollectible
accounts...................$66,600
The following are the transactions to be taken into
consideration for 2019:
a. Total credit sales for 2019 were $3,600,000.
b. 2% of sales were estimated to be uncollectible.
c. The company received cash payments on account during 2019 for
$1,000,000
d. Accounts receivable identified to be uncollectible totaled
$94,000.
e. December 31, 2019, aging of receivables indicates that
$75,000 of the receivables...
Mosaic’s Company balance sheet at December 31, 2018, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible...
Mosaic’s Company balance sheet at December 31, 2018, reported
the following:
Accounts
receivable...........................................$2,500,000
Allowance for uncollectible
accounts...................$66,600
The following are the transactions to be taken into
consideration for 2019:
a. Total credit sales for 2019 were $3,600,000.
b. 2% of sales were estimated to be uncollectible.
c. The company received cash payments on account during 2019 for
$1,000,000
d. Accounts receivable identified to be uncollectible totaled
$94,000.
e. December 31, 2019, aging of receivables indicates that
$75,000 of the receivables...
. At December 31, 2018, Garvey Company reported this information on its balance sheet. Accounts...
. At December 31, 2018, Garvey Company
reported this information on its balance sheet.
Accounts
Receivable $
960,000
Less:
Allowance for Doubtful
Accounts 78,000
During 2019, the company had the
following transactions related to receivables.
1.
Sales on
account $3,600,000
2.
Sales returns and
allowances 50,000
3.
Collection of account
receivables 3,100,000
4.
Write-offs of account receivable deemed
uncollectible 92,000
5.
Recovery of bad debts previously written off as
uncollectible 28,000
Instructions:
(a) Prepare the journal
entries to record each of these five transactions. Assume that...
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