Requlred Informatlon[The following information applies to the questions displayed below.)Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company'saccounting manager provides Willie with the following information, before any adjustment.Accounts receivable920,00010%Estimated percentage uncollectibleAllowance for uncollectible accounts22,800 (credit)242,000Operating inconeWillie's compensation contract states that if the company generates operating income of at least $192,000, he will get a salary bonus early next year.3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus?Multiple ChoiceYesNo

Formula; Allowance for dountful debts=Accounts receivables×Percentage of uncollectibles

[The following information applies to the questions displayed below.] Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. Accounts recelvte uncollectible Estinated Allowance for uncollectible accounts Operating incone $ 920,000 18% 22,80e (credit) $ 242,000 Willie's compensation contract states that if the company generates operating income of at least $192.000, he will get a salary bonus early next year. 3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Multiple Choice Yes No

[The following information applies to the questions displayed below.] Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. Accounts recelvte uncollectible Estinated Allowance for uncollectible accounts Operating incone $ 920,000 18% 22,80e (credit) $ 242,000 Willie's compensation contract states that if the company generates operating income of at least $192.000, he will get a salary bonus early next year. 3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Multiple Choice Yes No

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section: Chapter Questions

Problem 1AP

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Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which uses the allowance method, estimates bad debts at percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec. 12Record services performed on account for E. E. Morton, 245. 31Record the adjusting entry for Bad Debts Expense. 31Record the closing entry for Bad Debts Expense. 2013 Feb. 18Write off the account of E. E. Morton as uncollectible, 245. Check Figure Adjusting entry amount, 1,366.03
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Olena Mirrors records bad debt using the allowance, income statement method. They recorded $343,160 in accounts receivable for the year and $577,930 in credit sales. The uncollectible percentage is 4.4%. On May 10, Olena Mirrors identifies one uncollectible account from Elsa Sweeney in the amount of $2,870. On August 12, Elsa Sweeney unexpectedly pays $1,441 toward her account. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. May 10, 2018 identification entry C. Entry for payment on August 12, 2018
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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.
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