9:28 AM 00.1KB/s ll86PP - A:R_-106493777目At December 31, Banana Company reports the following results for its calendar year fromthe adjusted trial balance.I.Credit salesCash salesAccounts ReceivableAllowance for doubtful accounts (creditbalance)Php 8,100,00o2,350,000412.00013,000Required:Prepare the adjusting entry to record Bad Debts Expense using the following independentmethods:a. Sales Method, assuming estimated bad debts is 1%b. Accounts Receivable Method, assuming bad debts is 18%c. Aging of Accounts Receivable, assume the following:50% are current accounts, estimated uncollectible for current accounts is 1%30% are over 31 days to 90 days, estimated uncollectible accounts is 20%20% are over 90 days, estimated uncollectible accounts is 50%111.Lemon Company allows customers to make purchases on credit. The terms of all credit salesare 2/10, n/30, and all sales are recorded at the gross price. Other customers can use a bankcredit card where the bank deducts a 4% service charge for credit card sales and credits thebank account of Lemon immediately when credit card receipts are deposited. White uses theperpetual inventory method.II.JuneSold Php12,000 of merchandise (cost Php7,000) on credit to Grant Inc.Sold Php17,000 of merchandise (cost Php 9,350) to Libby Corp. whouseddaybank credit card, receipts were processed and deposited the same6.Sold Php8,500 of merchandise (cost Php 4,500) on credit to EmmaCompany.Accepted a Php 50,000, 45-day, 6% note dated this day in granting CoryTam a time extension on his past-due account receivable.810Received Grant's check in full payment of the purchase on June 4.Wrote off the account of Z. Westmore against the Allowance forDoubtful Accounts. The Php 1,580 balance stemmed from a credit sale inJanuary.Accepted a Php 75,000, 30-day, 10% note dates this day in granting F.Potter a time extension on his past-due account receivable.121520JulyReceived the amount previously written-off from Z. Westmore.F. Potter dishonored his note when presented for payment.172025Received payment of principal plus interest from Cory Tam.Prepare journal entries to record the above selected transactions and events....

Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

At December 31, Banana Company reports the following results for its calendar year from the adjusted trial balance. I. Credit sales Cash sales Accounts Receivable Allowance for doubtful accounts (credit balance) Php 8,100,000 2,350,000 412,000 13,000 Required: Prepare the adjusting entry to record Bad Debts Expense using the following independent methods: a. Sales Method, assuming estimated bad debts is 1% b. Accounts Receivable Method, assuming bad debts is 18% c. Aging of Accounts Receivable, assume the following: 1 50% are current accounts, estimated uncollectible for current accounts is 1% ii. 30% are over 31 days to 90 days, estimated uncollectible accounts is 20% iii. 20% are over 90 days, estimated uncollectible accounts is 50%

At December 31, Banana Company reports the following results for its calendar year from the adjusted trial balance. I. Credit sales Cash sales Accounts Receivable Allowance for doubtful accounts (credit balance) Php 8,100,000 2,350,000 412,000 13,000 Required: Prepare the adjusting entry to record Bad Debts Expense using the following independent methods: a. Sales Method, assuming estimated bad debts is 1% b. Accounts Receivable Method, assuming bad debts is 18% c. Aging of Accounts Receivable, assume the following: 1 50% are current accounts, estimated uncollectible for current accounts is 1% ii. 30% are over 31 days to 90 days, estimated uncollectible accounts is 20% iii. 20% are over 90 days, estimated uncollectible accounts is 50%

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3SEB: UNCOLLECTIBLE ACCOUNTS-PERCENTAGE OF RECEIVABLES Charlies Chevy Sales and Service estimates the...

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UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current year, the accounts receivable account of Parkers Nursery Supplies has a debit balance of 350,000. Credit sales are 2,300,000. 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 1,920. (a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 24,560 in uncollectible accounts. 2. Allowance for Doubtful Accounts has a debit balance of 1,280. (a) The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 22,440 in uncollectible accounts.
UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current year, the accounts receivable account of Glenns Nursery Supplies has a debit balance of 390,000. Credit sales are 2,800,000. 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 1,760. (a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 30,330 in uncollectible accounts. 2. Allowance for Doubtful Accounts has a debit balance of 1,900. (a) The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 29,890 in uncollectible accounts.
Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of 6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
Rogan Companys total sales on account for the year amounted to 327,000. The company, which uses the allowance method, estimated bad debts at 1 percent of its credit sales. Required Journalize the following selected entries: 2017 Dec.31 Record the adjusting entry. 2018 Mar. 2Write off the account of A. M. Billson as uncollectible, 584. June 6Write off the account of W. H. Gilders as uncollectible, 492. Check Figure Adjusting entry amount, 3,270
UNCOLLECTIBLE ACCOUNTS-PERCENTAGE OF SALES Nicoles Neckties has total credit sales for the year of 380,000 and estimates that 2% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of 430. 2. Allowance for Doubtful Accounts has a debit balance of 295.
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
UNCOLLECTIBLE ACCOUNTS-PERCENTAGE OF RECEIVABLES Charlies Chevy Sales and Service estimates the amount of uncollectible accounts using the percentage of receivables method. Based on aging the accounts, it is estimated that 3,935 will not be collected. 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 245. 2. Allowance for Doubtful Accounts has a debit balance of 560.