FINANCIAL ACCOUNTING W/ACCESS >CI<
2nd Edition
ISBN: 9781259999024
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 5, Problem 5.4BE
Record the adjustment for uncollectible accounts (LO5–3)
BE5–4 At the end of the year, Mercy Cosmetics’ balance of Allowance for Uncollectible Accounts is $600 (credit) before adjustment. The balance of
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E9.8 (LO 2), AP On December 31, 2021, when its Allowance for Doubtful Accounts had a zero balance, Ling Co. estimated that 2% of its net accounts receivable of $450,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Ling Co. determined that the Jeff Shoemaker account was uncollectible and wrote off $1,100. On June 12, 2022, Shoemaker paid the amount previously written off.
Instructions
A. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022.
Journalize entries for the sale of accounts receivable.
9. How much was Sasha Novikov’s adjusted accounts receivable on December 31, 2022?
- 1,481,250
10. How much was the adjusted balance of Sasha Novikov’s allowance for bad debts on December 31, 2022?
- 95,491
How much was the adjustment to bad debts expense? (Indicate before the answer if debit or credit: Eg. “Debit 50,000” or “Credit 50,000”)
- Credit 267,009
How much was the unadjusted balance of allowance for bad debts?
5.
AA Company prepared an aging of its accounts receivable at December 31, 2022 and determined that the net realizable value of the receivables was P350,000. Additional information is available as follows:
Allowance for uncollectible accounts at 1/1/22 – credit balance,P34,000
Accounts written off as uncollectible during 2022, P23,000
Accounts receivable at 12/31/22, P375,000
Uncollectible accounts recovered during 2022, P5,000
Total provisions made during 2022, P12,000
Statement 1: The amount of bad debts expense in 2022 is P9,000.
Statement 2: The ending balance of the allowance for uncollectible accounts is P25,000.
Group of answer choices
Only statement 1 is true
Both statements are true
Only statement 2 is true
Both statements are false
Chapter 5 Solutions
FINANCIAL ACCOUNTING W/ACCESS >CI<
Ch. 5 - When recording a credit sale, what account do we...Ch. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Briefly explain the accounting treatment for sales...Ch. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - 7.What two purposes do firms achieve by estimating...Ch. 5 - Prob. 8RQCh. 5 - 9.What are the financial statement effects of...Ch. 5 - Prob. 10RQ
Ch. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Discuss the differences between the allowance...Ch. 5 - 17.Notes receivable differ from accounts...Ch. 5 - With respect to notes receivable, explain what...Ch. 5 - Prob. 19RQCh. 5 - Interest on a note receivable typically is due...Ch. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23RQCh. 5 - Prob. 24RQCh. 5 - Prob. 25RQCh. 5 - Prob. 5.1BECh. 5 - Calculate net sales (LO52) Kellys Jewelry has the...Ch. 5 - At the end of the first war of operations,...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.5BECh. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.7BECh. 5 - Prob. 5.8BECh. 5 - Prob. 5.9BECh. 5 - Record the write-off of uncollectible accounts...Ch. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Sanders Inc. is a small brick manufacturer that...Ch. 5 - Prob. 5.14BECh. 5 - Prob. 5.15BECh. 5 - Prob. 5.16BECh. 5 - Prob. 5.17BECh. 5 - Refer to the information in BE517, but now assume...Ch. 5 - Match each of the following terms with its...Ch. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Record credit sale and cash collection with a...Ch. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - On April 25, Foreman Electric installs wiring in a...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Physicians Hospital has the following balances on...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Consider the following transactions associated...Ch. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Record notes receivable an interest revenue (LO57)...Ch. 5 - Prob. 5.18ECh. 5 - Compare the percentage of receivables method and...Ch. 5 - Compare the percentage-of-receivables method and...Ch. 5 - Compare the accounting cycle using receivable...Ch. 5 - Prob. 5.1APCh. 5 - Prob. 5.2APCh. 5 - Record transactions related to accounts receivable...Ch. 5 - Record transactions related to uncollectible...Ch. 5 - Compare the direct write-off method to the...Ch. 5 - Prob. 5.6APCh. 5 - Overestimating future uncollectible accounts...Ch. 5 - Prob. 5.8APCh. 5 - Assume selected financial data for Walmart and...Ch. 5 - Calculate the amount of revenue to recognize...Ch. 5 - Prob. 5.2BPCh. 5 - Record transactions related to accounts receivable...Ch. 5 - Record transactions related to uncollectible...Ch. 5 - Compare the direct write-off method to the...Ch. 5 - Prob. 5.6BPCh. 5 - Underestimating future uncollectible accounts...Ch. 5 - Prob. 5.8BPCh. 5 - Assume selected financial data for Sun Health...Ch. 5 - Prob. 5.1APCPCh. 5 - American Eagle Outfitters, Inc. Financial...Ch. 5 - Prob. 5.3APFACh. 5 - Prob. 5.4APCACh. 5 - Prob. 5.5APECh. 5 - Prob. 5.6APIRCh. 5 - Written Communication You have been hired as a...Ch. 5 - Earnings Management Ernie Upshaw is the...
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