Accounting
27th Edition
ISBN: 9781285149165
Author: WARREN
Publisher: CENGAGE C
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Chapter 5, Problem 5.19EX
Error in accounts payable subsidiary ledger
After Bunker Hill Assay Services Inc. had completed all postings for March in the current year (20Y4), the sum of the balances in the following accounts payable ledger did not agree with the $36,600 balance of the controlling account in the general ledger:
Assuming that the controlling account balance of $36,600 has been verified as correct, (a) determine the error(s) in the preceding accounts and (b) prepare a listing of accounts payable creditor balances (from the corrected accounts payable subsidiary ledger).
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Aging of receivables schedule
The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31:
The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals
Customer
Balance
Dud Date
Boyd Industries
$36,000
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Hodges Company
11,500
May 29
Kent Creek Inc.
6,600
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Lockwood Company
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Van Epps Company
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A. Determine the number of days past clue for each of the preceding accounts as of july 31.
B. Complete the aging of recivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
Required information Skip to question [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 640,000 $ 410,000 $ 104,000 $ 50,000 $ 32,000 $ 44,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,500 debit.
E8-4 Recording Write-Offs and Recoveries [LO 8-2]
Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,300 in its Allowance for Doubtful Accounts.
Required:
Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
On August 31, a customer balance for $330 from a prior year was determined to be uncollectible and was written off.
On December 15, the customer balance for $330 written off on August 31 was collected in full.
Chapter 5 Solutions
Accounting
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- Aging of receivables; estimating allowance for doubtful accounts Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Trophy Fish prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y4: The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Wolfe Sports, which is due in the next year. Trophy Fish has a past history of uncollectible accounts by age category, as follows: Instructions 1. Determine the number of days past due for each of the preceding accounts. 2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. 3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule. 4. Assume that the allowance for doubtful accounts for Trophy Fish Company has a debit balance of 3,600 before adjustment on December 31. Journalize the adjusting entry for uncollectible accounts. 5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?arrow_forwardAging of receivables schedule The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of July 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.arrow_forwardWaddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.arrow_forward
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- Aging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule as of the end of business on November 30: Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 90 Academy Industries Inc. 5,500 5,500 Ascent Company 4,500 4,500 Zoot Company 9,800 9,800 Subtotals 784,200 473,700 172,500 75,300 39,200 23,500 The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above: Customer Balance Due Date Conover Industries $11,000 July 9 Keystone Company 7,800 September 20 Moxie Creek Inc. 15,700 October 16 Rainbow Company 9,400 November 5 Swanson Company 21,200 December 21 b. Complete the aging-of-receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the…arrow_forwardAging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule as of the end of business on November 30: Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 90 Academy Industries Inc. 5,500 5,500 Ascent Company 3,100 3,100 Zoot Company 7,700 7,700 Subtotals 886,200 535,200 195,000 85,100 44,300 26,600 The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above: Customer Balance Due Date Conover Industries $12,400 July 9 Keystone Company 8,900 September 19 Moxie Creek Inc. 17,700 October 17 Rainbow Company 10,600 November 5 Swanson Company 23,900 December 21 Question Content Area a. Determine the number of days past due for each of the preceding accounts as of November 30. If an…arrow_forwardAging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule as of the end of business on November 30: Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 90 Academy Industries Inc. 4,700 4,700 Ascent Company 5,200 5,200 Zoot Company 11,900 11,900 Subtotals 714,300 431,500 157,100 68,600 35,700 21,400 The following accounts were unintentionally omitted from the aging schedule and not included in the subtotals above: Customer Balance Due Date Conover Industries $10,000 July 9 Keystone Company 7,100 September 21 Moxie Creek Inc. 14,300 October 16 Rainbow Company 8,600 November 3 Swanson Company 19,300 December 21 a. Determine the number of days past due for each of the preceding accounts as of November 30. If an account is not past…arrow_forward
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