D l.3:56Done a1961caa318d9983..._¿JWIÇ̟IJIQ2- Expand Furniture Store has credit sales of $400,000 in 2016and a debit balance of $600 in the Allowance for DoubtfulAccounts at year end. As of December 31, 2016, $130,000 ofaccounts receivable remain uncollected. The credit managerprepared an aging schedule of accounts receivable and estimatesthat $7,000 will prove to be uncollectible.On March 4, 2017, the credit manager authorizes a write-off ofthe $1,200 balance owed by AhmadInstructions(а)Prepare the adjusting entry to record the estimateduncollectible accounts expense in 2016.(b)Show the balance sheet presentation of accountsreceivable on December 31, 2016.(c)On March 4, before the write-off, assume the balance ofAccounts Receivable account is $160,000 and the balance ofAllowance for Doubtful Accounts is a credit of $3,000. Makethe appropriate entry to record the write-off of the Ahmadaccount. Also show the balance sheet presentation ofaccounts receivable before and after the write-off.Q3- On December 1, Aramex Company introduces a newproduct that includes a one-year warranty on parts. In December,500 units are sold. Management believes that 5% of the unitswill be defective and that the average warranty costs will be $60per unit. Prepare the adjusting entry at December 31 to accruethe estimated warranty cost.Q4- Datco Company has the following selected accounts afterposting adjusting entries:Accounts Payable$ 45,000Notes Payable, 3-month70,000Accumulated Depreciation-Equipment14,000FICA Taxes Payable27,000Notes Payable, 5-year, 8%29,0006,0003,000200,00016,00030,000Warranty LiabilityPayroll Tax ExpenseInterest PayableMortgage PayableSales Taxes PayableInstructions(а)Prepare the current liability section of Datco Company'sbalance sheet, assuming $25,000 of the mortgage is payablenext year. (List liabilities in magnitude order, with largestfirst.)(b)Comment on Datco Company liquidity, assuming totalcurrent assets are $450,000.

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Q2- Expand Furniture Store has credit sales of $400,000 in 2016 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2016, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2017, the credit manager authorizes a write-off of the $1,200 balance owed by Ahmad Instructions Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2016. Show the balance sheet presentation of accounts (a) (b) receivable on December 31, 2016. (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the write-off of the Ahmad account. Also show the balance sheet presentation of accounts receivable before and after the write-off.

Q2- Expand Furniture Store has credit sales of $400,000 in 2016 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2016, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2017, the credit manager authorizes a write-off of the $1,200 balance owed by Ahmad Instructions Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2016. Show the balance sheet presentation of accounts (a) (b) receivable on December 31, 2016. (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the write-off of the Ahmad account. Also show the balance sheet presentation of accounts receivable before and after the write-off.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6PA: Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable....

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McKinney 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.
Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500
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t 30 November 2009, Marek’s trial balance includes the following balances: DEBIT (R) CREDIT (R) Inventory at 1 December 2008 17 558 Trade receivables 31 749 Prepayments 3 629 Trade payables 24 928 Accruals 5 291 Bank account 1 827 Receivables allowance at 1 December 2008 683 Inventory at 30 November 2009 is valued at R18 736, and the receivables allowance is to be adjusted to R744. What value should be reported on Marek’s statement of financial position at 30 November 2009 for current liabilities? Select one: