Guardian Carpets Incorporated provided the following accounts related to beginning balances in its accounts receivable and allowance accounts for the current year: Accounts Receivable Beginning Balance 6,000,000 Allowance for Uncollectible Accounts 2,000,000 Beginning Balance Question content area top right Part 1 Requirement Prepare the journal entries to record the following transactions that occurred during the current year. Prepare a schedule for both accounts receivable and the allowance for uncollectible accounts that shows the beginning balances, the various items that change the beginning balance, and the ending balance. Question content area bottom Part 1 Prepare the journal entries to record the following transactions that occurred during the current year. (Record debits first, then credits. Exclude explanations from any journal entries.) a. Credit sales for the year amounted to $11,900,000. Ignore cost of goods sold and the reduction of inventory. Account Current Year Accounts Receivable 11900000 Sales Revenue Part 2 b. Several customers returned merchandise sold on account and unpaid, totaling $930,000 (retail value). Ignore cost of goods sold and the increase in inventory. Account Current Year Sales Returns and Allowances 930000 Accounts Receivable 930000 Part 3 c. Guardian wrote off $560,000 of uncollectible accounts from Rerun Inc. Account Current Year Allowance for Uncollectible Accounts 560000 Accounts Receivable - Rerun Inc.

Question content area top right

Question content area bottom

Part 1

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Part 7

Part 8

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 1OYO

See similar textbooks

Requirement

Prepare the journal entries to record the following transactions that occurred during the current year. Prepare a schedule for both accounts receivable and the allowance for uncollectible accounts that shows the beginning balances, the various items that change the beginning balance, and the ending balance.

Prepare the journal entries to record the following transactions that occurred during the current year. (Record debits first, then credits. Exclude explanations from any journal entries.)

a. Credit sales for the year amounted to

$11,900,000.

Ignore cost of goods sold and the reduction of inventory.

Account	Current Year
Accounts Receivable	11900000
Sales Revenue

Several customers returned merchandise sold on account and unpaid, totaling

$930,000

(retail value). Ignore cost of goods sold and the increase in inventory.

Account

Current Year

Sales Returns and Allowances

930000

Accounts Receivable

930000

Guardian

wrote off

$560,000

of uncollectible accounts from

Rerun

Inc.

Account	Current Year
Allowance for Uncollectible Accounts	560000
Accounts Receivable - Rerun Inc.

Guardian

sold

$1,200,000

of its accounts receivable to

Carmine

Capital with recourse.

Carmine

charged a fee equal to

of the receivables factored and held back an additional

as security.

Carmine

will return the hold back to

Guardian

when the receivables are collected. The estimated recourse liability is

$24,000.

This transaction qualifies as a sale.

Account

Current Year

Cash

Recourse Obligation

Receivable from Factor

24000

Accounts Receivable

1200000

The company recovered

$29,000

of accounts receivable written off two years ago from

Speedy

Industries.

Begin by recording the entry to reinstate the account balance that was previously written off. Do not record the cash collection. We will do that in the next step.

Account	Current Year
Accounts Receivable - Rerun Inc.	29000
Allowance for Uncollectible Accounts

Now record the cash collection of the amounts previously written off.

Account

Current Year

Cash

Accounts Receivable

The company recorded the bad debt expense for the year.

Guardian

estimates its uncollectible accounts at

14%

of accounts receivable. Round to the nearest dollar. (Round your answers to the nearest whole dollar.)

Account	Current Year

Allowance for Uncollectible

Accounts

Beginning Balance

Prepare a schedule for both accounts receivable and the allowance for uncollectible accounts that shows the beginning balances, the various items that change the beginning balance, and the ending balance.

Enter the beginning balances and choose the description and journal entry reference for any entries that change the beginning balance of the accounts receivable and allowance for uncollectible accounts. Enter the amounts of the changes and calculate the ending balance of the accounts. (Enter both beginning balances as positive values. Use parentheses or a minus sign for decreases to either account. If a box is not used in the table leave the box empty; do not enter a zero.)

Refer to the journal entries you prepared above.

	Journal		Allowance for
	Entry	Accounts	Uncollectible
Description	Reference	Receivable	Accounts
Beginning balance







Ending balance

Please help with putting in the correct information

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.