EBK FINANCIAL & MANAGERIAL ACCOUNTING
13th Edition
ISBN: 9780100545052
Author: WARREN
Publisher: YUZU
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Chapter 2, Problem 2.5BPR
1.
To determine
Corrected unadjusted
The corrected unadjusted trial balance is the summary of all the ledger accounts that appears on the ledger accounts after making
To prepare: A corrected unadjusted trial balance as of January 31, 2016.
2.
To determine
To Discuss: Whether the fact of the balancing of unadjusted trial balance in (1) means that there are no errors in the accounts.
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Students have asked these similar questions
The unadjusted trial balance of Fortune Company included the following accounts:
Debit $
Sales (80% on credit) for the year ended 31 Dec 2023
Credit $
900,500
Accounts Receivable 31 Dec 2023
209,070
Allowance for Impairment 1 Jan 2023
3,500
The aging of accounts receivable produced the following five groupings.
Days Past Due
Amount
Estimated
Uncollectible
% of
Not yet due
85,000
1%
1-30 days past due
56,000
3%
31-60 days past due
33,500
5%
61-90 days past due
18,570
10%
Over 90 days past due
16,000
15%
Required:
Prepare the adjusting entries to record the impairment loss of receivable for the year 2023. If Fortune
Company:
(a)
(b)
uses the Statement of Financial Position Approach to estimate the uncollectible accounts.
Show your workings.
uses the Income Statement Approach to estimate the uncollectible accounts, and it is
expected that 1% of the net credit sales for the year will be uncollectible.
Required information
[The following information applies to the questions displayed below.]
At December 31, Hawke Company reports the following results for its calendar year.
$2,181,050
$3,134,000
Cash sales
Credit sales
In addition, its unadjusted trial balance includes the following items.
$949,602 debit
$ 10,550 debit
Accounts receivable
Allowance for doubtful accounts
2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts
in part 1a.
Current assets:
%24
Question: Perform the following accounting for the receivables of A & G, an accounting firm, at December 31, 2014.
1. Start with the beginning balances for these T-accounts:
Accounts Receivable, $80,000
Allowance for Uncollectible Accounts, $9,000
Post the following 2014 transactions to the T-accounts:
a. Service revenue of $850,000, all on account
b. Collections on account, $790,000
c. Write-offs of uncollectible accounts, $7,000
d. Bad debt expense (allowance method), $8,000
2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts?
3. Show two ways A & G could report accounts receivable on its balance sheet at December 31, 2014.
Please explain & show steps, thank you.
Chapter 2 Solutions
EBK FINANCIAL & MANAGERIAL ACCOUNTING
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