Question
In: Accounting
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the end of the current year, the...
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables
At the end of the current year, the accounts receivable account of Parker's Nursery Supplies has a debit balance of $344,120. Credit sales are $2,658,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:
1. Allowance for Doubtful Accounts has a credit balance of $1,985.
a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. If an amount box does not require an entry, leave it blank.
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Dec. 31 | 1 | |||||
| 2 | 2 | ||||||
| 3 | 3 |
b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $23,690 in uncollectible accounts. If an amount box does not require an entry, leave it blank.
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Dec. 31 | 1 | |||||
| 2 | 2 | ||||||
| 3 | 3 |
2. Allowance for Doubtful Accounts has a debit balance of $1,160.
a. The percentage of sales method is used and bad debt expense is estimated to be ¾ of 1% of credit sales. If an amount box does not require an entry, leave it blank.
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Dec. 31 | 1 | |||||
| 2 | 2 | ||||||
| 3 | 3 |
b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $22,330 in uncollectible accounts. If an amount box does not require an entry, leave it blank.
| DATE | ACCOUNT TITLE | DOC. NO. |
POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|---|
| 1 | 20-- Dec. 31 | 1 | |||||
| 2 | 2 | ||||||
| 3 | 3 |
Solutions
Expert Solution
| 1. Allowance for Doubtful Accounts has a credit balance of $1,985. | Workings : | |||||||||||
| a. The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. | ||||||||||||
| Date | General Journal | Doc No. | post Ref. | Debit | Credit | Bad debt expense | 26580 | |||||
| 20-Dec,31 | Bad debt expense | 24595 | (2658000*1%) | |||||||||
| To Allowance for doubtful accounts | 24595 | Credit balance | -1985 | |||||||||
| (Being adjustment entry made for bad debt) | Adjustment req | 24595 | ||||||||||
| b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $23,690 in uncollectible accounts. | ||||||||||||
| Date | General Journal | Doc No. | post Ref. | Debit | Credit | Estimate of bad debt | 23690 | |||||
| 20-Dec,31 | Bad debt expense | 21705 | credit balance | -1985 | ||||||||
| To Allowance for doubtful accounts | 21705 | |||||||||||
| Adjustment req | 21705 | |||||||||||
| (Being adjustment entry made for bad debt) | ||||||||||||
| 2. Allowance for Doubtful Accounts has a debit balance of $1,160. | ||||||||||||
| a. The percentage of sales method is used and bad debt expense is estimated to be ¾ of 1% of credit sales | Bad debt expense | 19935 | ||||||||||
| (2658000*1%*3/4) | ||||||||||||
| Date | General Journal | Doc No. | post Ref. | Debit | Credit | Debit balance | 1160 | |||||
| 20-Dec,31 | Bad debt expense | 21095 | ||||||||||
| To Allowance for doubtful accounts | 21095 | Adjustment req | 21095 | |||||||||
| (Being adjustment entry made for bad debt) | ||||||||||||
| b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $22,330 in uncollectible accounts. | ||||||||||||
| Date | General Journal | Doc No. | post Ref. | Debit | Credit | |||||||
| 20-Dec,31 | Bad debt expense | 23490 | Estimate of bad debt | 22330 | ||||||||
| To Allowance for doubtful accounts | 23490 | Debit balance | 1160 | |||||||||
| (Being adjustment entry made for bad debt) | Adjustment req | 23490 | ||||||||||
ekkarill92 answered 1 year agoRelated Solutions
Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the end of the current year, the...
Uncollectible Accounts—Percentage of Sales and Percentage of
Receivables
At the end of the current year, the accounts receivable account
of Glenn's Nursery Supplies has a debit balance of $390,000. Credit
sales are $2,780,000. Record the end-of-period adjusting entry on
December 31, in general journal form, for the estimated
uncollectible accounts. Assume the following independent conditions
existed prior to the adjustment:
1. Allowance for Doubtful Accounts has a credit
balance of $1,860.
a. The percentage of sales method is used and...
eBook Calculator Uncollectible Accounts—Percentage of Sales and Percentage of Receivables At the completion of the current...
eBook
Calculator
Uncollectible Accounts—Percentage of Sales and Percentage of
Receivables
At the completion of the current fiscal year ending December 31,
the balance of Accounts Receivable for Yang's Gift Shop was
$31,660. Credit sales for the year were $344,800.
Required:
Make the necessary adjusting entry in general journal form under
each of the following assumptions. Show calculations for the amount
of each adjustment and the resulting net realizable value.
1. Allowance for Doubtful Accounts has a credit
balance of $335....
Using the percentage-of-receivables method for recording bad debts expense, estimated uncollectible accounts are €23,000. If the...
Using the percentage-of-receivables method for recording bad
debts expense, estimated uncollectible accounts are €23,000. If the
balance of the Allowance for Doubtful Accounts is €2,000 credit
before adjustment, what is the balance of the Allowance for
Doubtful Accounts end of that period?
a. €2,000
b. €21,000
c. €23,000
d. €25,000
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $55,000. If the...
Using the percentage-of-receivables method for recording bad
debt expense, estimated uncollectible accounts are $55,000. If the
balance of Allowance for Doubtful Accounts is $11,000 debit before
adjustment, what is the balance after adjustment?
A) $55,000
B) $11,000
C) $66,000
D) $44,000
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a
balance of $480,000; Allowance for Doubtful Accounts has a debit
balance of $4,500; and sales for the year total $2,160,000. Using
the aging method, the balance of Allowance for Doubtful Accounts is
estimated as $17,100.
a. Determine the amount of the adjusting entry
for uncollectible accounts.
$
b. Determine the adjusted balances of Accounts
Receivable, Allowance for Doubtful Accounts, and Bad Debt
Expense.
Accounts Receivable...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of
Receivables Method
At the end of the
current year, Accounts Receivable has a balance of $490,000;
Allowance for Doubtful Accounts has a debit balance of $4,500; and
sales for the year total $2,210,000. Using the aging method, the
balance of Allowance for Doubtful Accounts is estimated as
$18,500.
a.
Determine the amount of the adjusting entry for uncollectible
accounts.
$
b.
Determine the adjusted balances of Accounts Receivable, Allowance
for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a
balance of $455,000; Allowance for Doubtful Accounts has a credit
balance of $4,000; and sales for the year total $2,050,000. Using
the aging method, the balance of Allowance for Doubtful Accounts is
estimated as $19,600.
a. Determine the amount of the adjusting entry
for uncollectible accounts.
$
b. Determine the adjusted balances of Accounts
Receivable, Allowance for Doubtful Accounts, and Bad Debt
Expense.
Accounts Receivable...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a
balance of $465,000; Allowance for Doubtful Accounts has a debit
balance of $4,000; and sales for the year total $2,090,000. Using
the aging method, the balance of Allowance for Doubtful Accounts is
estimated as $20,800.
a. Determine the amount of the adjusting entry
for uncollectible accounts.
$
b. Determine the adjusted balances of Accounts
Receivable, Allowance for Doubtful Accounts, and Bad Debt
Expense.
Accounts Receivable...
7.Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...
7.Analysis of Receivables Method At the end of the current year,
Accounts Receivable has a balance of $545,000; Allowance for
Doubtful Accounts has a debit balance of $5,000; and sales for the
year total $2,450,000. Using the aging method, the balance of
Allowance for Doubtful Accounts is estimated as $26,000. a.
Determine the amount of the adjusting entry for uncollectible
accounts. $ b. Determine the adjusted balances of Accounts
Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable...
Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet...
Accounting for uncollectible accounts using the allowance method
(percent-of-sales) and reporting receivables on the balance
sheet
At January 1, 2013, Mary's Local Store had Accounts Receivable
of $ 34,000 and Allowance for Bad Debts had a credit balance of $
3,000. During the year, Mary's Local Store recorded the
following:
a. Sales of $189,000 ($165,000 on account; $ 24,000
for cash).
b. Collections on account, $ 133,000.
c. Write-offs of uncollectible receivables, $
2,800.
Requirements
1. Journalize Mary’s transactions that...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Requirements How can management be modelled to enhance food security entrepreneurship in rural Zambia? What must...
- Calculate the Ecell value at 298K for the cell based on the reaction Fe3+(aq)+ Cr2+(aq) -->...
- Give five examples of organizational forms used to produce goods and services. What tax characteristics distinguish...
- aBankruptcy: Moral, Amoral, or Immoral? Is it unethical to avoid paying one’s debts by going into...
- (I have posted this question three times without any answer! please answer it. I really need...
- Consider the context-free grammar G = ( {S}, {a, b}, S, P) where P = {...
- Your firm is considering two one-year loan options for a $ 489 comma 000 loan. The...
ADVERTISEMENT