Answer full question. Grover Inc. uses the allowance method to account for uncollectible accounts expense. Grover Inc. experienced the following fouraccounting events in Year 1:1. Recognized $78,000 of revenue on account.2. Collected $72,000 cash from accounts receivable.3. Wrote off uncollectible accounts of $1,000.4. Recognized uncollectible accounts expense, Grover estimated that uncollectible accounts expense will be 2 percent of sales onaccount.edRequireda. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shownnext. Use + for increase and – for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity(OA), investing activity (IA), or financing activity (FA). Columns for events that have no effect on any of the elements should be leftblank. The first transaction is entered as an example. (Note: Not all cells will require an input.)kTEffect of Events on the Financial StatementsIncome StatementCash FlowBalance SheetStockholders'EquityRevenueExpenseNet IncomeEventAssetsLiabilities1.%3D3.4. Requireda. Show the effect of each event on the elements of the financial statements, using a horizontal statements model like the one shownnext. Use + for increase and - for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity(OA), investing activity (IA), or financing activity (FA). Columns for events that have no effect on any of the elements should be leftblank. The first transaction is entered as an example. (Note: Not all cells will require an input.)TEffect of Events on the Financial StatementsBalance SheetIncome StatementCash FlowStockholders'+ExpenseNet IncomeAssetsLiabilitiesRevenue%3DEvent%3DEquity1.%3D2.%3D3.4.%3DNoxt

Uncollectible accounts expense When a customer misses on a payment, an uncollectible accounts…

Grover Inc. uses the allowance method to account for uncollectible acco accounting events in Year 1: 1. Recognized $78,000 of revenue on account. 2. Collected $72,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $1,000. 4. Recognized uncollectible accounts expense. Grover estimated that un

Grover Inc. uses the allowance method to account for uncollectible acco accounting events in Year 1: 1. Recognized $78,000 of revenue on account. 2. Collected $72,000 cash from accounts receivable. 3. Wrote off uncollectible accounts of $1,000. 4. Recognized uncollectible accounts expense. Grover estimated that un

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 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Olena Mirrors records bad debt using the allowance, balance sheet method. They recorded $343,160 in accounts receivable for the year and $577,930 in credit sales. The uncollectible percentage is 4.4%. On June 11, Olena Mirrors identifies one uncollectible account from Nadia White in the amount of $4,265. On September 14, Nadia Chernoff unexpectedly pays $1,732 toward her account. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. June 11, 2018 identification entry C. Entry for payment on September 14, 2018
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.
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?
Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts receivable turnover in days.
On January 24, 20Y8, Niche Consulting collected $5,700 it had hilled its clients for services rendered on December 31, 20Y7. How would you record the January 24 transaction, using the accrual basis? A. Increase Cash, $5,700; decrease Fees Earned, $5,700 B. Increase Accounts Receivable, $5,700; increase Fees Earned, $5,700 C. Increase Cash, $5,700; decrease Accounts Receivable, $5,700 D. Increase Cash, $5,700; increase Fees Earned, $5,700
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% 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 $20,550; 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 $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.