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Question 1 Dialex Watches completed the following selected transactions during 2007 & 2008: 2007 Dec. 31 Estimated that uncollectible-account (bad-debt) expense for the year was 1% of credit sales of $400,000 and recorded the amount as expense. Use the allowance method. Dec. 31 Made the closing entry for uncollectible-account expense. 2008 Jan. 17 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. Wrote off Mitch Vanez's account as uncollectible after repeated effort to collect from him. June. 29 Received $600 from Mitch Vanez, along with a letter apologizing for being so late. Reinstated Vanez 's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Moner, $1,300. Aug. 6 Dec. 31 Dес. 31 Estimated that uncollectible expense for the year was 1% of credit sales of $480,000, and recorded that amount as expense Made the closing entry for uncollectible-account expense. Dес. 31 Pequirements: )Open general ledger accounts for Allowance for Uncollectible Accounts and Uncolle Accounts Expense. Keep running balances. All accounts begin with zero balance. tronsactions in the general journal and post to the two ledger accounts. C120 000 Show how

Question 1 Dialex Watches completed the following selected transactions during 2007 & 2008: 2007 Dec. 31 Estimated that uncollectible-account (bad-debt) expense for the year was 1% of credit sales of $400,000 and recorded the amount as expense. Use the allowance method. Dec. 31 Made the closing entry for uncollectible-account expense. 2008 Jan. 17 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. Wrote off Mitch Vanez's account as uncollectible after repeated effort to collect from him. June. 29 Received $600 from Mitch Vanez, along with a letter apologizing for being so late. Reinstated Vanez 's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Moner, $1,300. Aug. 6 Dec. 31 Dес. 31 Estimated that uncollectible expense for the year was 1% of credit sales of $480,000, and recorded that amount as expense Made the closing entry for uncollectible-account expense. Dес. 31 Pequirements: )Open general ledger accounts for Allowance for Uncollectible Accounts and Uncolle Accounts Expense. Keep running balances. All accounts begin with zero balance. tronsactions in the general journal and post to the two ledger accounts. C120 000 Show how

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 30E
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of credit sales. At the end of the year, the company ages its accounts receivable and adjusts the balance in the Allowance for Uncollectible Accounts to correspond to the aging schedule. During July to December of 20X7, Texas Gulf Carts completed the following transactions: August 9 Made a compound entry to write off uncollectible accounts: J. Aguilar, $200; Scaton Co., $100; and T. Taylor, $700. Sept. 30 Recorded uncollectible account expense equal to 1%% of credit sales of $140,000 Oct. 18 Wrote off accounts receivable as uncollectible the $500 account receivable from Lantz Co. and the $400 ac unt receivable from Navisor Corp. Dec. 31 Recorded uncollectible-account expense based on the aging of reccivables, which follows: Age of Accounts 1-30 31 - 60 61 – 90 Over 90 Total Days Days Days Days $163,000 $100,000 $40,000 $14,000 9,000 Estimated percent uncollectible 0.1% 0.5% 5% 30% Required: a. Record the transactions in the journal. b. Open the Allowance for Uncollectible Account and post entries affecting that account. Keep a running balance. c. Show how Texas Gulf Carts should report accounts receivable on its balance sheet at December 31, 20X7. Question 4 The June 30, 20X 9, balance sheet of Ram Technologies reports the following: Accounts Receivable... Allowance for Uncollectible Accounts (Cr)..... $265,000 7,100 At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales.
Transcribed Image Text:of credit sales. At the end of the year, the company ages its accounts receivable and adjusts the balance in the Allowance for Uncollectible Accounts to correspond to the aging schedule. During July to December of 20X7, Texas Gulf Carts completed the following transactions: August 9 Made a compound entry to write off uncollectible accounts: J. Aguilar, $200; Scaton Co., $100; and T. Taylor, $700. Sept. 30 Recorded uncollectible account expense equal to 1%% of credit sales of $140,000 Oct. 18 Wrote off accounts receivable as uncollectible the $500 account receivable from Lantz Co. and the $400 ac unt receivable from Navisor Corp. Dec. 31 Recorded uncollectible-account expense based on the aging of reccivables, which follows: Age of Accounts 1-30 31 - 60 61 – 90 Over 90 Total Days Days Days Days $163,000 $100,000 $40,000 $14,000 9,000 Estimated percent uncollectible 0.1% 0.5% 5% 30% Required: a. Record the transactions in the journal. b. Open the Allowance for Uncollectible Account and post entries affecting that account. Keep a running balance. c. Show how Texas Gulf Carts should report accounts receivable on its balance sheet at December 31, 20X7. Question 4 The June 30, 20X 9, balance sheet of Ram Technologies reports the following: Accounts Receivable... Allowance for Uncollectible Accounts (Cr)..... $265,000 7,100 At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales.
Question 1 Dialex Watches completed the following selected transactions during 2007 & 2008: 2007 Dec. 31 Estimated that uncollectible-account (bad-debt) expense for the year was 1% of credit sales of $400,000 and recorded the amount as expense. Use the allowance method. Dec. 31 Made the closing entry for uncollectible-account expense. 2008 Jan. 17 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. Wrote off Mitch Vanez's account as uncollectible after repeated effort to collect from him. June. 29 Aug. 6 Received $600 from Mitch Vanez, along with a letter apologizing for being so late. Reinstated Vanez 's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Moner, $1,300. Dec. 31 Dec. 31 Estimated that uncollectible expense for the year was 1% of credit sales of $480,000, and recorded that amount as expense Made the closing entry for uncollectible-account expense. Dec. 31 Requirements: a) Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible Accounts Expense. Keep running balances. All accounts begin with zero balance. b) Record the transactions in the general journal and post to the two ledger accounts. c) The December 31, 2008 balance of Accounts Receivable is $1 39,000. Show how Accounts Receivable would be reported on the balance sheet at that date.
Transcribed Image Text:Question 1 Dialex Watches completed the following selected transactions during 2007 & 2008: 2007 Dec. 31 Estimated that uncollectible-account (bad-debt) expense for the year was 1% of credit sales of $400,000 and recorded the amount as expense. Use the allowance method. Dec. 31 Made the closing entry for uncollectible-account expense. 2008 Jan. 17 Sold inventory to Mitch Vanez, $600, on account. Ignore cost of goods sold. Wrote off Mitch Vanez's account as uncollectible after repeated effort to collect from him. June. 29 Aug. 6 Received $600 from Mitch Vanez, along with a letter apologizing for being so late. Reinstated Vanez 's account in full and recorded the cash receipt. Made a compound entry to write off the following accounts as uncollectible: Bernard Klaus, $1,700; Marie Moner, $1,300. Dec. 31 Dec. 31 Estimated that uncollectible expense for the year was 1% of credit sales of $480,000, and recorded that amount as expense Made the closing entry for uncollectible-account expense. Dec. 31 Requirements: a) Open general ledger accounts for Allowance for Uncollectible Accounts and Uncollectible Accounts Expense. Keep running balances. All accounts begin with zero balance. b) Record the transactions in the general journal and post to the two ledger accounts. c) The December 31, 2008 balance of Accounts Receivable is $1 39,000. Show how Accounts Receivable would be reported on the balance sheet at that date.
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