4) Matiere Co. completed the following transactions during 2019 and 2020:DateTransactions2019Dec. 31Estimated that bad debt expenses for the year was 3% of credit sales of $385,000and recorded that amount as expense.31 Made the closing entry for bad debt expense.2020Mar. 26 Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignorethe cost of goods sold.Sep. 15 Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collectfrom her.Nov. 10 Received $5,500 from Sanders, along with a letter stating her intention to pay herdebt in full within 30 days. Reinstated her account in full.Received the balance due from Sanders.Dec.31 Made a compound entry to write off the following accounts as uncollectible: CurtMajor, $2,200. Bernadette Lalonde, $962.50; Ellen Smart, $1,470.31 Estimated that bad debt expense for the year was 2% of credit sales of $490,000and recorded the expense.Made the closing entry for bad debt expense.31a. Record the transactions in the general journal. No explanations are necessary.b. Post to the ledger by using T-accounts.

Bad Debts are those debt from which business has made credit sales in past and amount has not been…

4) Matiere Co. completed the following transactions during 2019 and 2020: Date Transactions 2019 Dec. 31 Estimated that bad debt expenses for the year was 3% of credit sales of $385,000 and recorded that amount as expense. 31 Made the closing entry for bad debt expense. 2020 Mar. 26 Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignore the cost of goods sold. Sep. 15 Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collect from her. Nov. 10 Received $5,500 from Sanders, along with a letter stating her intention to debt in full within 30 days. Reinstated her account in full. рay her Dec. Received the balance due from Sanders. Made a compound entry to write off the following accounts as uncollectible: Curt Major, $2,200. Bernadette Lalonde, $962.50; Ellen Smart, $1,470. 31 Estimated that bad debt expense for the year was 2% of credit sales of $490,000 and recorded the expense. 31 Made the closing entry for bad debt 31 expense. Record the transactions in the general journal. No explanations are necessary. a. b. Post to the ledger by using T-accounts.

4) Matiere Co. completed the following transactions during 2019 and 2020: Date Transactions 2019 Dec. 31 Estimated that bad debt expenses for the year was 3% of credit sales of $385,000 and recorded that amount as expense. 31 Made the closing entry for bad debt expense. 2020 Mar. 26 Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignore the cost of goods sold. Sep. 15 Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collect from her. Nov. 10 Received $5,500 from Sanders, along with a letter stating her intention to debt in full within 30 days. Reinstated her account in full. рay her Dec. Received the balance due from Sanders. Made a compound entry to write off the following accounts as uncollectible: Curt Major, $2,200. Bernadette Lalonde, $962.50; Ellen Smart, $1,470. 31 Estimated that bad debt expense for the year was 2% of credit sales of $490,000 and recorded the expense. 31 Made the closing entry for bad debt 31 expense. Record the transactions in the general journal. No explanations are necessary. a. b. Post to the ledger by using T-accounts.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 31E

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Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts: Required: 1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018. 2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of loses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method. 3. CONCEPTUAL CONNECTION Do you believe this estimate of bad debt expense is reasonable? 4. CONCEPTUAL CONNECTION How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were What other action would management consider?
Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000 accounts receivable balance at the end of 2018 and $841,000 at the end of 2019. Clovis uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Clovis changes bad debt estimation to the balance sheet method at 5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Clovis Enterprises in 2019 as a result of its earnings management.
Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a $499,000 accounts receivable balance at the end of 2018, and $600,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 5% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 7% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Aerospace Electronics in 2019 as a result of its earnings management.
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Dortmund Stockyard reports $896,000 in credit sales for 2018 and $802,670 in 2019. It has a $675,000 accounts receivable balance at the end of 2018, and $682,000 at the end of 2019. Dortmund uses the balance sheet method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Dortmund changes bad debt estimation to the income statement method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Dortmund Stockyard in 2019 as a result of its earnings management.
Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an $825,000 accounts receivable balance at the end of 2018 and $756,000 at the end of 2019. Fortune uses the balance sheet method to record bad debt estimation at 7.5% during 2018. To manage earnings more favorably, Fortune changes bad debt estimation to the income statement method at 5.5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Fortune in 2019 as a result of its earnings management.
At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical count. During 2020, the company discovered that the correct inventory value at the end of 2019 should have been 400,000 because it made a counting error. Upon discovery of this error in 2020, what correcting journal entry will Manny make? Ignore income taxes.
Angelos Outlet used to report bad debt using the balance sheet method and is now switching to the income statement method. The percentage uncollectible will remain constant at 5%. Credit sales figures for 2019 were $866,000, and accounts receivable was $732,000. How much will Angelos Outlet report for 2019 bad debt estimation under the income statement method?
Company Edgar reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 12,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
Company Elmira reported the following cost of goods sold but later realized that an error had been made in ending inventory for year 2021. The correct inventory amount for 2021 was 32,000. Once the error is corrected, (a) how much is the restated cost of goods sold for 2021? and (b) how much is the restated cost of goods sold for 2022?
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.