Question
In: Accounting
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 is uncollectible.
Requirements:
1. What was the net realizable value of the receivables as at December 31, 2018?
2. Prepare the journal entries for the company’s 2019 transactions.
3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T-accounts based on the information presented above. (Note: 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, 2019? (Show workings)
Solutions
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...
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.
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...
The December 31st, Balance Sheet shows the following: Accounts Receivable $ 100,000 less: Allowance for uncollectible...
The December 31st, Balance
Sheet shows the following:
Accounts Receivable
$ 100,000
less: Allowance for
uncollectible accounts
(5,000)
Net Accounts
Receivable
$ 95,000
During the year, the
following activity occurred in the accounts receivable
account:
Sales on credit
650000
cash collections
635000
write-offs
2500
1)
Before a year end
adjustment, what is the balance in the allowance for uncollectible
accounts?
2)
What is the balance in
gross accounts receivable at year end?
3)
Using a rate of .5% of...
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...
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, 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...
. 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...
(Accounts receivable and uncollectible accounts—aging of receivables method) On December 31, 2019, Ajacks Company reported the...
(Accounts receivable and uncollectible accounts—aging of
receivables method)
On December 31, 2019, Ajacks Company reported the following
information in its financial statements:
Accounts receivable
$1,193,400
Allowance for doubtful accounts
81,648
Bad debts expense
80,448
During 2020, the company had the following transactions related
to receivables:
a. Sales were
$10,560,000, of which $8,448,000 were on account.
b. Collections of
accounts receivable were $7,284,000.
c. Writeoffs of
accounts receivable were $78,000.
d. Recoveries of
accounts previously written off as uncollectible were $8,100....
Sunland Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance...
Sunland Company uses the allowance method to estimate
uncollectible accounts receivable. The unadjusted balance in
Allowance for Doubtful Accounts is a debit of $5,000.
The company produced the following information from aging its
accounts receivable at year end. Complete the aging schedule and
calculate the total estimated uncollectible accounts.
Number of Days Outstanding
Total
0–30
31–60
61–90
91–120
Accounts receivable
$580,000
$330,000
$120,000
$80,000
$50,000
Estimated % uncollectible
2%
6%
10%
30%
Estimated uncollectible accounts
$
$
$
$
$...
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