Problem 13-9 (IAA) At year-end, a storm surge damaged the warehouse of Braveheart Company. The entire inventory and many accounting records were completely destroyed. January 1 December 31 1,500,000 Inventory Purchases Cash sales Collections of accounts receivable Accounts receivable Gross profit rate on sales 5,500,000 8,400,000 000'006 000'001'T %0% 700,000 What amount should be reported as inventory loss from the storm surge? a. 1,180,000 b. 1,720,000 c. 2,700,000 d. 2,260,000 200000

Problem 13-9 (IAA) At year-end, a storm surge damaged the warehouse of Braveheart Company. The entire inventory and many accounting records were completely destroyed. January 1 December 31 1,500,000 Inventory Purchases Cash sales Collections of accounts receivable Accounts receivable Gross profit rate on sales 5,500,000 8,400,000 000'006 000'001'T %0% 700,000 What amount should be reported as inventory loss from the storm surge? a. 1,180,000 b. 1,720,000 c. 2,700,000 d. 2,260,000 200000

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter9: Receivables

Section: Chapter Questions

Problem 9.6APR: Sales and notes receivable transactions The following were selected from among the transactions...

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Sales and notes receivable transactions The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3. Loaned 18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford Co., 24,000. The cost of the merchandise sold was 14,400. 13. Sold merchandise on account to Dry Creek Co., 60,000. The cost of merchandise sold was 54,000. Mar. 12. Accepted a 60-day, 7% note for 24,000 from Bradford Co. on account. 14. Accepted a 60-day, 9% note for 60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11. Received from Bradford Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the amount owed on the dishonored note, plus interest for 60 days at 12% computed on the maturity value of the note. Aug. 1. Received from Trina Gelhaus the amount due on her note of April 3. Oct. 5. Sold merchandise on account to Halloran Co., 13,500. The cost of the merchandise sold was 8,100. 15. Received from Halloran Co. the amount of the invoice of October 5. Instructions Journalize the entries to record the transactions.
6. On June 30, 20X3, a storm damaged a warehouse of ABC Company. The entire inventory and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data are assembled. Inventory, January 1 7,500,000 Purchases, January 1 – June 30 31,500,000 Cash sales, January 1 – June 30 5,000,000 Collection of accounts receivable, January 1 – June 30 45,000,000 Accounts receivable, January 1 3,000,000 Accounts receivable, June 30 4,000,000 Salvage value of inventory 400,000 Gross profit percentage on sales 40% The inventory loss as a result of the storm should be reported at a.8,400,000 b.8,000,000 c.9,000,000 d.8,600,000
PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The following balances were gathered from the general ledger on March 31, 2021: Accounts receivable P 920,000 Inventory, 1/1/2021 1,880,000 Accounts payable 950,000 Sales 3,600,000 Purchases 1,680,000 Additional information follows: A. An examination of the April bank statement and canceled checks revealed checks written during the period April 1 to 30 as follows: Accounts payable, 3/31 P 240,000 April merchandise shipments 80,000 Expenses 160,000 Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refunds from a vendor for merchandise returned in April. B. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. C. Correspondence with suppliers revealed unrecorded obligations at April 30 of…
E8-4 Recording Write-Offs and Recoveries [LO 8-2] Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,300 in its Allowance for Doubtful Accounts. Required: Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) On August 31, a customer balance for $330 from a prior year was determined to be uncollectible and was written off. On December 15, the customer balance for $330 written off on August 31 was collected in full.
24. Miller Company's allowance for doubtful accounts was P1,000,000 at the end 20XX and P900,000 at the end of 20XX-1. For the year ended December 31, 20XX, Mill reported doubtful accounts expense of P160,000 in its income statement. What amount did Mill debit to the appropriate account in 20XX to write off uncollectible accounts?
38. The company’s accounts receivable under “61-90 days” category totaleda. P32,600b. P44,320c. P44,600d. P42,000 39. The allowance for bad debts to be reported on the balance sheet at December 31, 20x7, isa. P13,199b. P6,199c. P9,699d. P9,043 40. What entry should be made on December 31, 20x7, to adjust the allowance for bad debts account?a. Bad debt expense 13,699Allowance for bad debts 13,699b. Bad debt expense 5,199Allowance for bad debts 5,199c. Allowance for bad debts 5,199Bad debts expense 5,199d. Bad debt expense 9,699Allowance for bad debts 9,699
M8-16 (Supplement 8A) Recording Write-Offs and Reporting Accounts Receivable Using the Direct Write-Off Method [LO 8-S1] On December 31, 2017, Extreme Fitness has an adjusted balance of $720,000 in Accounts Receivable. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $50,400. Extreme Fitness uses the direct write-off method. What amount would the company report as its net accounts receivable on December 31, 2017? Prepare the journal entry to write off the accounts on January 2, 2018. Assuming no other transactions occurred between December 31, 2017, and January 3, 2018, what amount would the company report as its net accounts receivable on January 3, 2018? Has net accounts receivable changed from December 31, 2017? Req A: What amount would the company report as its net accounts receivable on December 31, 2017? Accounts Receivable Req…
QS 9-2 (Algo) Direct write-off method LO P1 Solstice Company determines on October 1 that it cannot collect $69,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1.
The following information is available for Fess Company: Credit sales during 20X1 $ 150,000 Allowance for credit losses at December 31, 20X0 1,450 Accounts receivable deemed worthless and written off during 20X1 1,800 During 20X1, Fess estimated that its credit loss expense should be 1% of all credit sales. As a result of a review and aging of accounts receivable in early January 20X2, it has been determined that an allowance for credit losses of $1,600 is needed at December 31, 20X1. Required: What is the total amount that Fess should record as credit loss expense for the year ended December 31, 20X1? Show the journal entries affecting the Allowance for credit losses that Fess made during 20X1.
Problem 10-01A On January 1, 2022, the ledger of Cullumber Company contained these liability accounts. Accounts Payable $45,000 Sales Taxes Payable 9,100 Unearned Service Revenue 21,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $5,936, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $12,500. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $9,100. 20 Sold 750 units of a new product on credit at $54 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $52,000. Withholdings related to these wages were $3,978 for Social Security (FICA), $5,686 for federal income tax, and $1,706 for state income tax. The company owed no money related to these earnings for federal or state…
July 27 20XX Discovered that $35 worth of office supplies purchased on the 25th were of poor quality. The supplies were returned for a cash refund. what account would be debited and credited
Problem 20 During the annual audit of Garcia Company, you encountered the following account, entitled “Receivables and Payables”: Debit Credit Due from customers P156,000 Payable to creditors for merchandise P62,000 Note receivable, long term 80,000 Expected cumulative losses on bad debts 4,000 Due from employees, current 2,200 Cash dividends payable 24,000 Special receivable, dishonored* 22,000 Accrued wages 2,400 Rent received in advance 1,600 Insurance premium paid in advance 1,200 Mortgage payable 40,000 *Collection probable in 2 years. Compute the amount to be reported as trade and other receivables under current assets.