Provide your answers in the space given below. IF TWO OR MORE ACCOUNTS ARE DEBITED OR CREDITED, PLEASE LIST THE ACCOUNTS IN ALPHABETICAL ORDER ON THAT SIDE. (eg. for Dr. Cost of Goods Sold and Dr. Accounts Receivable, debit Accounts Receivable first then debit Cost of Goods Sold). STRICTLY ENFORCEDI On September 30, 2020, the balance in Siakam Supplies Limited's (SSL) accounts receivable account was 587,340 and the allowance for doubeful accounts had a credit balance of 55,500. SSL uses the aging of accounts receivable method to estimate its uncollectible accounts and applies percentages based on the age of the accounts receivable at period end, as follows: • 040 days: 5% • 61-90 days: 15% • Over 90 days: 25% n October, SSL had the following transactions pertaining to receivables: Oct 11 Received bankruptey notice from customer Green Gardens, Inc: balance receivable of 56,140 was written off. 17 Credit sales totaling S17.00 was billed to customers. 31 Prepared the adjusting entry related to bad debts. The aging of accounts receivable at October 31, 2020 was as follows: 0-60 daya: $55,400 61-90 days: $20,600 >90 days: $7.200 Required:

Financial Accounting
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ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
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Chapter5: Accounting Systems
Section: Chapter Questions
Problem 7E: The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account...
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Provide your answers in the space given below. IF TWO OR MORE ACCOUNTS ARE DEBITED OR CREDITED, PLEASE LIST THE
ACCOUNTS IN ALPHABETICAL ORDER ON THAT SIDE. (e.g. for Dr. Cost of Goods Sold and Dr. Accounts Receivable, debit Accounts
Receivable first then debit Cost of Goods Sold). STRICTLY ENFORCEDI
On September 30, 2020, the balance in Siakam Supplies Limited's (SSL) accounts receivable account was $87,340 and the allowance for doubtful accounts
had a credit balance of $5,500. SSL uses the aging of accounts receivable method to estimate its uncollectible accounts and applies percentages based on
the age of the accounts receivable at period end, as follows:
• 0-60 days:
• 61-90 days: 15%
• Over 90 days: 25%
5%
In October, SSL had the following transactions pertaining to receivables:
Oct 11 Received bankruptcy notice from customer Green Gardens, Inc.; balance receivable of $6,140 was written off.
17 Credit sales totaling $17,000 was billed to customers.
31 Prepared the adjusting entry related to bad debts. The aging of accounts receivable at October 31, 2020 was as follows:
0- 60 days:
$55,400
61 - 90 days:
$20.600
>90 days:
$7.200
Required:
a. Record SSL's transactions and required adjustments for October. Round to the nearest dollar.
Date
Account
Debit
Credit
October 11
Date
Account
Debit
Credit
October 17
Date
Account
Debit
Credit
October 31
Show your calculations for the adjustment recorded on October 31 by filling in the following blanks (enter absolute values only):
Desired ending balance of the Allowance for Doubtful Accounts (AFDA) account $
Beginning balance of the AFDA account:
Accounts receivable written-off
:
Required adjustment:
b. Assume the allowance doubtful account had a debit balance of $6,200 on September 30, 2020. Record the adjusting entry recorded on October 31.
Round to the nearest dollar.
Date
Account
Debit
Credit
October 31
Show your calculations for the adjustment recorded on October 31 by filling in the following blanks (enter absolute values only):
Desired ending balance of the Allowance for Doubful Accounts (AFDA) account
Beginning balance of the AFDA account
Accounts receivable written-of:
Required adjustment:
c. On November 30, Falcon Company, a customer of SSL, informed SSL that it has difficulty to pay for its $16,000 balance owing on account. SSL agreed to
accept a note issued by Falcon for the balance owing on November 30, 2020. The note has an interest rate of 8% and it is due with all ti
nents in 9
months. Record the necessary journal entries for the following dates:
1) November 30, 2020
Date
Account
Debit
Credit
November 30, 2020
2) December 31, 2020 (the fiscal year end of SSL). Round to the nearest dollar.
Date
Account
Debit
Credit
December 31, 2020
3) August 31, 2021 (the maturity date of the note). Round to the nearest dollar.
Date
Account
Debit
Credit
August 31, 2021
Transcribed Image Text:Provide your answers in the space given below. IF TWO OR MORE ACCOUNTS ARE DEBITED OR CREDITED, PLEASE LIST THE ACCOUNTS IN ALPHABETICAL ORDER ON THAT SIDE. (e.g. for Dr. Cost of Goods Sold and Dr. Accounts Receivable, debit Accounts Receivable first then debit Cost of Goods Sold). STRICTLY ENFORCEDI On September 30, 2020, the balance in Siakam Supplies Limited's (SSL) accounts receivable account was $87,340 and the allowance for doubtful accounts had a credit balance of $5,500. SSL uses the aging of accounts receivable method to estimate its uncollectible accounts and applies percentages based on the age of the accounts receivable at period end, as follows: • 0-60 days: • 61-90 days: 15% • Over 90 days: 25% 5% In October, SSL had the following transactions pertaining to receivables: Oct 11 Received bankruptcy notice from customer Green Gardens, Inc.; balance receivable of $6,140 was written off. 17 Credit sales totaling $17,000 was billed to customers. 31 Prepared the adjusting entry related to bad debts. The aging of accounts receivable at October 31, 2020 was as follows: 0- 60 days: $55,400 61 - 90 days: $20.600 >90 days: $7.200 Required: a. Record SSL's transactions and required adjustments for October. Round to the nearest dollar. Date Account Debit Credit October 11 Date Account Debit Credit October 17 Date Account Debit Credit October 31 Show your calculations for the adjustment recorded on October 31 by filling in the following blanks (enter absolute values only): Desired ending balance of the Allowance for Doubtful Accounts (AFDA) account $ Beginning balance of the AFDA account: Accounts receivable written-off : Required adjustment: b. Assume the allowance doubtful account had a debit balance of $6,200 on September 30, 2020. Record the adjusting entry recorded on October 31. Round to the nearest dollar. Date Account Debit Credit October 31 Show your calculations for the adjustment recorded on October 31 by filling in the following blanks (enter absolute values only): Desired ending balance of the Allowance for Doubful Accounts (AFDA) account Beginning balance of the AFDA account Accounts receivable written-of: Required adjustment: c. On November 30, Falcon Company, a customer of SSL, informed SSL that it has difficulty to pay for its $16,000 balance owing on account. SSL agreed to accept a note issued by Falcon for the balance owing on November 30, 2020. The note has an interest rate of 8% and it is due with all ti nents in 9 months. Record the necessary journal entries for the following dates: 1) November 30, 2020 Date Account Debit Credit November 30, 2020 2) December 31, 2020 (the fiscal year end of SSL). Round to the nearest dollar. Date Account Debit Credit December 31, 2020 3) August 31, 2021 (the maturity date of the note). Round to the nearest dollar. Date Account Debit Credit August 31, 2021
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