Sales Service and Service Revenue are two income statement accounts that relate to Accounts Receivable . Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on income statement and indicate whether each would appear before or after Income from Operations equired informationThe following information applies to the questions displayed below.]Neb 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 $38,000 on credit.b. On January 31, the company estimated bad debts using 1 percent of credit sales.C. On February 4, the company collected $19,000 of accounts receivable.d. On February 15, the company wrote off a $100 account receivable.e. During February, the company provided services for $28,000 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 $1180.Number of Days Unpaid61-90CustomerAlabama TourismBayside BungalowsOthers (not shown to save space)Xciting XcursionsTotal Accounts ReceivableEstimated Uncollectible (%)Total0-302431-60Over 90%$4200100802038038016,6006,6008, 2001,000400800400$17,580$7,100$ 8,28015%$1,020$1,1802%20%40%< Prevof 8Next >earch CustomerAlabama Tourism2$2001002$802420%241,000380Bayside BungalowsOthers (not shown to save space)38080016,6004006,6008,200Xciting XcursionsTotal Accounts ReceivableEstimated Uncollectible (%).400$ 7,100$ 8,280$ 1,020$ 1,18040%$17,5802%15%20%4. Sales Revenue and Service Revenue are'two income statement accounts that relate to Accounts Receivable. Name two otheraccounts related to Accounts Receivable and Notes Receivable that would be reported on the income statement and indicatewhether each would appear before, or after, Income from Operations.Web Wizard would reportIncome from OperationsIncome from Operations< Prevof 8Next>ere to search

Step 1 While reporting income from operations via statement of income, then two more accounts other…

Sales Service and Service Revenue are two income statement accounts that relate to Accounts Receivable . Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on income statement and indicate whether each would appear before or after Income from Operations

Sales Service and Service Revenue are two income statement accounts that relate to Accounts Receivable . Name two other accounts related to Accounts Receivable and Notes Receivable that would be reported on income statement and indicate whether each would appear before or after Income from Operations

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

See similar textbooks

Similar questions

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.
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.
Millennium Associates records bad debt using the allowance, balance sheet method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On November 22, Millennium Associates identifies one uncollectible account from Angels Hardware in the amount of $3,650. On December 18, Angels Hardware unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. November 22, 2018 identification entry C. Entry for payment on December 18, 2018
Millennium Associates records bad debt using the allowance, income statement method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,330. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.