Question
In: Accounting
Monique’s Trading Company balance sheet at December 31, 2016, reported the following: Accounts receivable...........................................$1,000,000 Allowance for...
Monique’s Trading Company balance sheet at December 31, 2016, reported the following:
Accounts receivable...........................................$1,000,000
Allowance for uncollectible accounts...................$33,330
The following are the transactions to be taken into consideration for 2017:
a. Total credit sales for 2017 were $2,400,000.
b. 2% of sales were estimated to be uncollectible.
c. The company received cash payments on account during 2017 for $900,000
d. Accounts receivable identified to be uncollectible totaled $64,000.
e. December 31, 2017, aging of receivables indicates that $72,000 of the
receivables are uncollectible.
Requirements:
1. What was the net realizable value of the receivables as at December 31,2016
2. Prepare the journal entries for the company’s 2017 transactions.
3. Prepare the Accounts receivable and the Allowance for uncollectible
accounts T-accounts based on the information presented above. (Hint!!! The opening balances and the transactions from the journal entries must be recorded in their respective accounts)
4. What is the net realizable value of receivables as at December 31, 2017? (show workings)
Solutions
Expert Solution
1. What was the net realizable value of the receivables as at December 31,2016
| Accounts receivable | 10,00,000 |
| Allowance for uncollectible accounts | 33330 |
| net realizable value | 9,66,670 |
2. Prepare the journal entries for the company’s 2017 transactions.
| DR | CR | |
| Account receivable | 24,00,000 | |
| Sales | 24,00,000 | |
| Bad debt Expense | 48000 | |
| Allowance for Doubfull debt | 48000 | |
| Cash | 9,00,000 | |
| Account receivable | 9,00,000 | |
| Allowance for Doubfull debt | 64000 | |
| Account receivable | 64000 | |
| Bad debt Expense | 54,670 | |
| Allowance for Doubfull debt | 54,670 |
3. Prepare the Accounts receivable and the Allowance for uncollectible
accounts T-accounts based on the information presented above.
| Accounts receivable | ||||
| Beg Balance | 10,00,000 | Cash received | 9,00,000 | |
| credit sales | 2400000 | Allowance for uncollectible | 64,000 | |
| End Balance | 24,36,000 | |||
| Allowance for uncollectible | ||||
| Accounts receivable | 64,000 | Beg Balance | 33330 | |
| Bad debt expense | 54670 | |||
| Bad debt expense | 48,000 | |||
| End Balance | 72,000 | |||
4. What is the net realizable value of receivables as at December 31, 2017? (show workings)
| Accounts receivable | 24,36,000 |
| Allowance for uncollectible | 72,000 |
| net realizable value of receivables | 23,64,000 |
ekkarill92 answered 1 year agoRelated Solutions
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, 2016, House Co. reported the following information on its balance sheet. Accounts receivable...
At December 31, 2016, House Co. reported the following
information on its balance sheet.
Accounts receivable
$950,100
Less: Allowance for doubtful accounts
78,300
During 2017, the company had the following transactions related to
receivables.
1.
Sales on account
$3,729,700
2.
Sales returns and allowances
50,300
3.
Collections of accounts receivable
2,811,600
4.
Write-offs of accounts receivable deemed uncollectible
88,100
5.
Recovery of bad debts previously written off as
uncollectible
(b)
Enter the January 1, 2017, balances in Accounts Receivable and...
Super Duper Company’s balance sheet at December 31, 2016, reported the following: Accounts receivable............................................................... $420,000 Less:...
Super Duper Company’s balance sheet at December 31, 2016,
reported the following: Accounts
receivable...............................................................
$420,000 Less: Allowance for uncollectible
accounts............................$8,400 Requirements: 1. What
was the net realizable value of these receivables at December 31,
2016? 2. Journalize, without explanations, 2017 entries for Super
Duper: a. Total credit sales for 2017 were $840,000; 4% of sales
were estimated to be uncollectible. Super Duper received cash
payments on account during 2017 of $520,000. b. Accounts receivable
identified to be uncollectible totaled $26,000....
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
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Account Titles and Explanation...
At December 31, Gill Co. reported accounts receivable of $274,000 and an allowance for uncollectible accounts...
At December 31, Gill Co. reported accounts receivable of
$274,000 and an allowance for uncollectible accounts of $1,500
(credit) before any adjustments. An analysis of accounts receivable
suggests that the allowance for uncollectible accounts should be 1%
of accounts receivable. The amount of the adjustment for
uncollectible accounts would be:
$1,500.
$1,240.
$2,740.
$950.
Kim and Kim Company’s balance sheet at December 31, 2017, reported the following: Accounts receivable............................................................... $2,000,000...
Kim and Kim Company’s balance sheet at December 31, 2017,
reported the following:
Accounts
receivable...............................................................
$2,000,000
Allowance for uncollectible
accounts.....................................$20,000
DR
Requirements:
1. What was the net realizable value of these
receivables at December 31, 2017?
2. Journalize, without explanations, 2018
entries for Super Duper:
a. Total credit sales for 2018 were $1,200,000;
2% of sales were estimated to be uncollectible. Super-Duper
received cash payments on account during 2018 of $780,000.
b. Accounts receivable identified to be
uncollectible totaled $38,000....
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...
1. The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance...
1.
The balance sheet at the end of 2018 reported Accounts
Receivable of $785,500 and Allowance for Doubtful Accounts of
$11,783 (credit balance).
The company’s total sales during 2019 were $8,350,200. Of
these, $1,252,530 were cash sales the rest were credit sales.
By the end of the year, the company had collected $6,291,700 of
accounts receivable.
It also wrote off an account for $10,380.
A.Prepare the journal entry for sales.
B. Prepare the journal entry for collections.
C. Prepare the...
Kim and Kim (K&K) Company’s balance sheet at December 31, 2017, reported the following Accounts receivable..................................................................
Kim and Kim (K&K) Company’s balance sheet at December 31,
2017, reported the following
Accounts
receivable...............................................................
$2,000,000
Allowance for uncollectible
accounts.....................................$20,000 DR
Requirements:
1. What was the net realizable value of these receivables at
December 31, 2017?
2. Journalize, without explanations, 2018 entries for Kim and
Kim Company:
a. Total credit sales for 2018 were $1,200,000; 2% of sales were
estimated to be uncollectible.
b. K&K Company received cash payments on account during 2018
of $780,000.
c. Accounts receivable identified...
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