Student Portal Main Third Party Resource LCS Learni X WileyPLUS ugen.wileyplus.com/edugen/Iti/main.uni US S Kieso, Intermediate Accounting, 17e Help | System Announcements ES CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 7-03 (Part Level Submission) Cheyenne Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Cheyenne's Accounts Receivable account was $591,300 and Allowance for Doubtful Accounts had a credit balance of $40,920. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability Days Account Outstanding of Collection Amount Less than 16 days $312,600 0.97 Between 16 and 30 days 110,600 0.90 Between 31 and 45 days 87,800 0.86 Between 46 and 60 days 42,600 0.82 Between 61 and 75 days 21,900 0.57 Over 75 days (to be written off) 15,800 0.00 udy (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful ACcounts 24 LINK TO TEXT Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER > (b) 1:05 AM e to search 0202///

Student Portal Main Third Party Resource LCS Learni X WileyPLUS ugen.wileyplus.com/edugen/Iti/main.uni US S Kieso, Intermediate Accounting, 17e Help | System Announcements ES CALCULATOR PRINTER VERSION 4 BACK NEXT Problem 7-03 (Part Level Submission) Cheyenne Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Cheyenne's Accounts Receivable account was $591,300 and Allowance for Doubtful Accounts had a credit balance of $40,920. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability Days Account Outstanding of Collection Amount Less than 16 days $312,600 0.97 Between 16 and 30 days 110,600 0.90 Between 31 and 45 days 87,800 0.86 Between 46 and 60 days 42,600 0.82 Between 61 and 75 days 21,900 0.57 Over 75 days (to be written off) 15,800 0.00 udy (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful ACcounts 24 LINK TO TEXT Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER > (b) 1:05 AM e to search 0202///

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 69E: Aging Receivables and Bad Debt Expense Perkinson Corporation sells paper products to a large number...

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US GAAP BASED PLEASE 1. Global Advertising handles ads and promotion of various clients all on credit term of 180 days. It’s unadjusted trial balance on Dec 31, 2004, end of it’s first year of operation, showed among others: Accounts Receivable, P1,250,000and Professional Fee, P4,560,000, As it was only its first year, management decided to forego recording of Bad Debts. Among its Transactions for the year 2005 are as follows Professional Service Rendered, P5,500,000 Total collection of Previous and current Accounts, P3,500,000 The accountant adopted a policy of providing for bad debts based on 3% of the outstanding accounts receivables at the end of the year. Prepare the following Entries to record the transactions for the year 2005 Post to T-Accounts the entries made in requirement a. Entry to adjust for bad debts on Dec 31, 2005 Post the adjusting entry made. What was the realizable value of the account receivable? How much was the bad debt expense in the income statement
Prepare the correct Creditors Control account for May 2020 after taking into account the additional information, errors and omissions. Balance the account Balance b/d June R112 000 Additional information, errors and omissions1. The debit balance in the account of a creditor, R300, must be transferred to the Debtors ledger.2. An invoice for goods purchased from Super Suppliers was entered in the Purchases journal as R6 400 instead of R4 600.3. A credit purchase of equipment from Minto Enterprises was not recorded, R5 000.4. A credit note received from HD Wholesalers for trading goods returned was not recorded in the Purchases Returns Journal, R1 000.5. Stardom Traders, a creditor, charged Oyster Traders interest on overdue account, R50
Required information Skip to question [The following information applies to the questions displayed below.] Web Wizard, Incorporated, has provided information technology services for several years. For the first two months of the current year, 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 of transactions during the first quarter. During January, the company provided services for $47,000 on credit. On January 31, the company estimated bad debts using 2 percent of credit sales. On February 4, the company collected $23,500 of accounts receivable. On February 15, the company wrote off $150 account receivable. During February, the company provided services for $37,000 on credit. On February 28, the company estimated bad debts using 2 percent of credit sales. On March 1, the company loaned $2,600 to an…
Required information Skip to question [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 current year, 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 of transactions during the first quarter. During January, the company provided services for $30,000 on credit. On January 31, the company estimated bad debts using 1 percent of credit sales. On February 4, the company collected $15,000 of accounts receivable. On February 15, the company wrote off a $200 account receivable. During February, the company provided services for $20,000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. On March 1, the company loaned $2,800 to an…
Required information Skip to question [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 current year, 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 of transactions during the first quarter. During January, the company provided services for $30,000 on credit. On January 31, the company estimated bad debts using 1 percent of credit sales. On February 4, the company collected $15,000 of accounts receivable. On February 15, the company wrote off a $200 account receivable. During February, the company provided services for $20,000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. On March 1, the company loaned $2,800 to an…
Required information Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 480,000 debit Allowance for doubtful accounts $ 5,800 debit Required:1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 2% of credit sales. Bad debts are estimated to be 1% of total sales. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.
PLEASE ANSWER ASAP Problem No. 3 You are auditing the accounts receivable and the related allowance for bad debts account of AACA Company. The following data are available: General Ledger Accounts Receivable 2022 Dec. 31 381,600 Allowance for Bad Debts 2022 2022 Jul. 31 GJ Write-off 7,200 Jan. 1 Balance 9,000 Dec. 31 GJ - Provision 21,600 Summary of Aging Schedule The summary of the subsidiary ledger balances as of December 31, 2022, is shown below: Debit balances Under one month P 162,000 One to six months 165,600 Over six months 68,400 P 396,000 Credit balances Mark Co. P 3,600 OK; additional billing in Jan. 2023 Lady Co. 6,300 Should have been credited to Ivan Co.* 8,100 Advance on a sales contract P 18,000 *Account is in “one to six months” classification. The…
Creating an allowance for credit losses. The following is an extract from the accounting records of Jack Traders at 31 December 20.1, the last day of the financial year: Pre-adjustment trial balance ACCOUNT Fol Debit R Credit R Balance sheet accounts section Debtors control B9 130 000 Adjustments at 31 December 20.1: Jack Traders wants to create an allowance for credit losses of R6 500.
Explain only the debtors control addition of 950. I have share two trial balance; one with errors and the other one is corrected. Below is the initial instructions. The following errors were discovered during the financial year ended 28 February 2021.a) A debtor that was owing N$ 600 was erroneously written-off as bad debt;b) Cash receipt of $300 was recorded as bank receipt;c) A payment of N$ 1 500 received from a customer was recorded on supplier;d) Credit sales of N$ 4 300 was recorded to supplier account; Page 18 of 19e) Bank charge of $420 was completely omitted from the records;f) Stationery purchased of $ 580 was debited to advertisement;g) Printing that was purchased by EFT was completely ignored in the books, $630;h) A customer that was owing $1 250 was declared bankrupt and the transaction was notrecorded;i) The owner withdraws a cheque for $900 and deposited in the business;j) Depreciation for motor vehicle was not provided for. Depreciation is at 10% straight lineand no…
At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $945,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $473 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. Prev Question 4 of 5 Total Please use the numbers indicated in my question and place solutions on journals indicated per assignment instructions.
Please do not provide answer not image formate thank you. A company reports a year end credit sales in the amount of 390,000 and accounts receivable of $85,500. The company uses the balance sheet method to report bad debt estimation. The estimation percentage is 3.5%. There is a current debut balance of $2,000 in the bad debt account and a $2,000 credit balance in the allowance for doubtful accounts. Record the journal entry using the income statement method. Then record this transaction using T accounts. edit: The transaction is to be recorded with the balance sheet method and not the income statement method*
Write-Off of Uncollectible Accounts King Enterprises had 27 customers utilizing its financial planning services in 2019. Each customer paid King $25,000 for receiving Kings assistance. King estimates that 2% of its $675,000 credit sales in 2019 will be uncollectible. During 2020, King wrote off $2,700 related to services performed in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. 2. Prepare the adjusting entry to record the bad debt expense for 2019.