2. Prepare the journal entries for items (a)-(j). (If no entry is required for a transaction/event, select "No Journal Entry Required" inthe first account field. Do not round intermediate calculations.)View transaction listJournal entry worksheet123 4567811>....Record service revenue of $40,000 sold on account during January.Note: Enter debits before credits.TransactionGeneral JournalDebitCredita.Record entryClear entryView general journal [The following information applies to the questions displayed below.]Web Wizard, Inc., has provided information technology services for several years. For the first two months of the currentyear, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter,the company switched to the aging of accounts receivable method. The company entered into the following partial list oftransactions during the first quarter.a. During January, the company provided services for $40,000 on credit.b. On January 31, the company estimated bad debts using 1 percent of credit sales.c. On February 4, the company collected $20,000 of accounts receivable.d. On February 15, the company wrote off a $100 account receivable.e. During February, the company provided services for $30,000 on credit.f. On February 28, the company estimated bad debts using 1 percent of credit sales.g. On March 1, the company loaned $2,400 to an employee, who signed a 6% note, due in 6 months.h. On March 15, the company collected $100 on the account written off one month earlier.i. On March 31, the company accrued interest earned on the note.j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance forDoubtful Accounts has an unadjusted credit balance of $1,200.Number of Days UnpaidCustomerTotal0-3031-6061-90Over 90Alabama Tourism$4200$4100$80$20Bayside BungalowsOthers (not shown to save space)Xciting Xcursions4004006,80040017,0008,4001,000800400$ 7,300$ 8,480$ 1,020$ 1, 20040%Total Accounts Receivable$18,000Estimated Uncollectible (%)2%10%20%

Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…

punts receivable method. The company entered into the following partial list of d services for $40,000 on credit. d bad debts using 1 percent of credit sales. d $20,000 of accounts receivable. off a $100 account receivable. ed services for $30,000 on credit. ted bad debts using 1 percent of credit sales. 400 to an employee, who signed a 6% note, due in 6 months. $100 on the account written off one month earlier. terest earned on the note. or uncollectible accounts, based on an aging analysis (below). Allowance for credit balance of $1,200. Number of Days Unpaid Total 0-30 31-60 61-90 Over 90 200 199 80 20

punts receivable method. The company entered into the following partial list of d services for $40,000 on credit. d bad debts using 1 percent of credit sales. d $20,000 of accounts receivable. off a $100 account receivable. ed services for $30,000 on credit. ted bad debts using 1 percent of credit sales. 400 to an employee, who signed a 6% note, due in 6 months. $100 on the account written off one month earlier. terest earned on the note. or uncollectible accounts, based on an aging analysis (below). Allowance for credit balance of $1,200. Number of Days Unpaid Total 0-30 31-60 61-90 Over 90 200 199 80 20

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 44P

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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.
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.
Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.
On June 30, Isner Inc.s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $550, but the accounts receivable subsidiary ledger shows total account balances of $850. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake?
Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer was able to negotiate with the company and transferred the accounts receivable into a note that includes interest, along with an up-front cash payment of $6,000. The note maturity date is 24 months with a 15% annual interest rate. What is the entry to recognize this transfer?