How much uncollectible accounts expense should be presented on the statement of comprehensive income for the year ended December 31, 2018? a. 160,600 b. 194,000 c. 240,600 d. 254,600 e. None of the choices
Q: STATEMENTS OF RECEIPTS AND EXPENSES For the fiscal years ended April 30, 2020 2019 OPERATING…
A: Horizontal analysis - Horizontal Analysis is part of the analysis in which individuals get the idea…
Q: If the percentage of completion method had been used, the The cumulative effect of the accounting…
A: The increase in income due to a change in the method of depreciation shall be adjusted towards…
Q: Please provide the answers to the amounts not given.For the following items, provide the missing…
A: For computing the net icnome/ Loss for the period, reverse statement needs to be prepared. Ending…
Q: income b. unearned income c. accrued income d. accrued expense
A:
Q: The unadjusted net income for the year 2019 is: a. P1,540,200 b. P1,458,200 c. P1,482,200 d.…
A: Net income Net income is the difference between total revenues minus related expenses. Net income…
Q: 1. Determine the profit or loss for the year ended 30 September 2019 (Use comparison method) 2.…
A: Under comparison method, all assets, liabilities of two different periods are compared in order to…
Q: If the income statement error is discovered in a subsequent accounting period, what action is to be…
A: Solution Nominal account is a general ledger account pertaining to all income , expenses , losses…
Q: Which type of adjustment occurs when cash is either collected or paid, but the related income or…
A: Deferral adjustments are those adjustments where advance cash has been received or paid but income…
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of…
A: >When recording a financial transaction relating to revenues and expenses, following treatments…
Q: . If Avonette fails to make an adjusting entry for the accrued interest on December 31,2018,a. net…
A: Adjusting Entries are the entries made at the end of a year for adjusting certain transactions.
Q: By how much would the December 31, 2021 retained earnings be misstated if no adjustments were made…
A: Adjustment Entries It is important for the entity to generate viable financial reporting system…
Q: nder IFRS 15, what is the net income/(loss) to be reported by the company for the years ended…
A: Percentage of completion Cost Incurred in 2017 & 2018 (excluding inefficiencies) = 100 million…
Q: Required: Prepare an accrual basis income statement for 2021. (Ignore income taxes.) STANLEY AND…
A: An income statement refers to the one from which net income/loss is determined by taking all the…
Q: 3. Identify and analyze the effect of the payment of interest and the amortization of premium on…
A: Accounting Equation:- Effect of payment of Interest :- 1. Interest A/c - Debited - Expense…
Q: Required: For each of the above independent and unrelated errors, determ the effect on the 2020…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: equired: 1.By how much would the December 31, 2021 retained earnings be misstated if no adjustments…
A: Journal entry is the practice of recording commercial transactions for the first time in the books…
Q: An expense incurred/used up in 2020 is not paid until 2021. Using the accrual basis of accounting,…
A: The accrual concept states that the revenues and expenses should've reported when accrued,…
Q: Its omission at year end will result to understated net income Group of answer choices A. Accrued…
A: Lets understand the meaning of all the options. Accrued expense means a expense which is incurred…
Q: Express the Balance Sheets/Financial Position and Income Statement in common-size percents, using…
A: A full-size income statement is an income statement where each line item is expressed as a…
Q: Suppose that Laramie Company’s adjusted trial balance ignored the following information. For each…
A: When dividends are declared by a company, the journal entry would include debit to Retained earnings…
Q: In year 2022, payment of rent for the month is debited to Rent Income. What is the effect of the…
A: Correct entry: Debit: Rent expense Credit: Cash Entry recorded: Debit: Rent income Credit: Cash…
Q: Required: 1. Prepare the journal entry at the beginning of 2021 to record the change in accounting…
A: Solution:- 1)Preparation of the journal entry at the beginning of 2021 to record the change in…
Q: Two or more items are omitted in each of the following tabulations of income statement data. Fill in…
A: Cost of goods sold is defined the as the value or carrying value of the products sold during the…
Q: What is the adjusted balance of Accounts Receivable as of December 31, 2016? A. 4,300,000 B.…
A: Accounts Receivable Accounts receivable is treated as one of the important segment in the balance…
Q: Calculate the missing value (in $) according to the accounting equation. Assets Liabilities Owner's…
A: The accounting equation refers to the equation of the balance sheet. It is based on the method of…
Q: What amount should be reported as doubtful accounts expense for the current year?
A: Step 1 Under aging method of estimating allowance for doubtful accounts, a percentage of accounts…
Q: REQU 1. Determine the correct amount of the following as of Dec. 31, 2019: a. Trade receivables,…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Notes receivable due in 390 days appear on the a.balance sheet in the current liabilities section…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: gnoring income tax, the accounting change should preferably be reported by the company in its year…
A: As the question specified ignoring income taxes, the cumulative effect on retained earnings will be…
Q: Non-recognition of deferral at the end of the accounting period will a.understate income and…
A: Deferrals means the payment made or received for the expenses or the income which has not been yet…
Q: (b) Prepare the journal entry to record 2021 income tax expense, income taxes payable, and deferred…
A: Solution:- Given, Financial Income = $1,634,000 in 2020 and $1,359,000 in 2021. Purchase Equipment =…
Q: The collection of an account that had been previously written off under the allowance method of…
A: Uncollectible accounts are those accounts receivables to whom it is estimated that amount will not…
Q: Q49 The conversion for balance sheet in the beginning of the year or opening year balance sheet…
A: Conversion of balance sheet in the beginning of the year or opening year balance sheet items under…
Q: tate the effect of the following errors if OVERSTATED, UNDERSTATED, or NO EFFECT. NO. ERRORS EFFECT…
A: Solution Concept Retained earnings is understated if net income is understated Retained earnings is…
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of…
A: Correct entry: Debit: Cash Credit: Interest income Entry recorded: Debit: Cash Credit: Interest…
Q: 9. Aside from accruals, which of the following can be reversed? A. Deferrals initially recorded…
A: All the transactions of the company that are happened during the year will be recorded first in the…
Q: adjusted balance of accounts payable on December 31, 2021?
A: Answer: Unadjusted Balance of Accounts payable as on Dec 31,2021…
Q: ABC Co. change from cash basis of accounting to the accrual basis of accounting during 2021. The…
A: Prior Period Item: The term 'prior period items,' as described in this Standard, solely refers to…
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of…
A: While preparing books of accounts, there can be two kinds of mistakes: Error of omission and error…
Q: Alternative Accounting Treatments a. Estimate the amount of liability and record. b. Do not record…
A: Contingent liabilities are those liabilities which might be incurred through entity grounded on the…
Q: What is the effect of omission of prepaid expense in retained earnings at the end of year 2? Group…
A: Prepaid expenses are those expenses which are related with future period of time but paid in advance…
Q: In year 2022, collection of interest income is credited to Interest Expense. What is the effect of…
A: Solution Concept When the income is not recorded the effect is understatement of the revenue and it…
Q: (Pre faration of Opein ting Activit, section-Dipect imethod) Krauss company's income statement for…
A: Direct method of cash flows statement indicates the cash inflows and cash outflows related…
Q: What is the DTA the company will report on its 2021 balance sheet that corresponds to the NOL Carry…
A: Deferred tax asset: Deferred tax asset is an item that appeared on the balance sheet of the company…
Q: 5. The following items affect the retained earnings account, except Group of answer choices a. net…
A: Retained earnings is the part of stockholders' equity. It is the part of income set aside to be…
Q: A revenue was earned in 2019 but payment is not received until 2020. Using the accrual basis of…
A: Introduction: Accrual basis of Accounting: Recording of a transactions irrespective of cash paid or…
Q: Required: (a) Prepare journal entries to record the impairment loss of receivable in 2021 under…
A: Accounts receivables are those customer accounts to whom credit sales has been made and amount has…
Q: 1. Determine the correct amount of the following as of Dec. 31, 2019: a. Trade receivables, current…
A: Note: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you.…
How much uncollectible accounts expense should be presented on the statement of comprehensive income for the year ended December 31, 2018?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.Allowance Method for Accounting for Bad Debts At the beginning of 2016, Miyazaki Companys Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazakis sales in 2016 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during the year. Required Prepare summary journal entries related to the sales, collections, and write-offs of accounts receivable during 2016. Prepare journal entries to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to be uncollectible are 6% of the year-end accounts receivable. What is the net realizable value of accounts receivable on December 31, 2016, under each assumption in part (2)? What effect does the recognition of bad debts expense have on the net realizable value? What effect does the write-off of accounts have on the net realizable value?
- Allowance Method for Accounting for Bad Debts At the beginning of 2016, EZ Tech Companys Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful Accounts was $2,350 (Cr.). EZ Techs sales in 2016 were $1,050,000, 80% of which were on credit. Collections on account during the year were $670,000. The company wrote off $4,000 of uncollectible accounts during the year. Required Prepare summary journal entries related to the sale, collections, and write-offs of accounts receivable during 2016. Prepare journal entries to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to be uncollectible are 6% of the year-end accounts receivable. What is the net realizable value of accounts receivable on December 31, 2016, under each assumption in part (2)? What effect does the recognition of bad debts expense have on the net realizable value? What effect does the write-off of accounts have on the net realizable value?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, 3,270Aerospace 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.
- 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.South Rims has an accounts receivable balance at the end of 2018 of $357,470. The net credit sales for the year are $769,346. The balance at the end of 2017 was $325,300. What is the accounts receivable turnover rate for 2018 (rounded to two decimal places)? A. 2.02 times B. 2.25 times C. 2.15 times D. 1.13 timesMcKinney 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.
- Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% 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 credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.