FINANCIAL & MANAGERIAL ACCW/CENGAGENOWV
15th Edition
ISBN: 9781337955423
Author: WARREN, JONES
Publisher: CENGAGE L
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Chapter 8, Problem 17E
Entries for
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:
- A. Journalize the write-offs under the direct write-off method.
- B. Journalize the write-offs under the allowance method. Also, journalize the
adjusting entry for uncollectible accounts. The company recorded $5,250,000 of credit sales during the year. Based on past history and industry averages, ¾% of credit sales are expected to be uncollectible. - C. How much higher (lower) would Casebolt Company’s net income have been under the direct write-off method than under the allowance method?
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Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Method
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:
June 8.
Wrote off account of Kathy Quantel, $7,910.
Aug. 14.
Received $5,620 as partial payment on the $14,160 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct. 16.
Received the $7,910 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt.
Dec. 31.
Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan
$2,290
Greg Gagne
1,420
Amber Kisko
5,460
Shannon Poole
3,160
Niki Spence
870
Dec. 31.
If necessary, record the year-end adjusting entry for uncollectible accounts.
If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
a. Journalize the…
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods
The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31:
Apr. 13.
Wrote off account of Dean Sheppard, $6,720.
May 15.
Received $3,360 as partial payment on the $8,940 account of Dan Pyle. Wrote off the remaining balance as uncollectible.
July 27.
Received $6,720 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt.
Dec. 31.
Wrote off the following accounts as uncollectible (record as one journal entry):
Paul Chapman
$4,500
Duane DeRosa
3,360
Teresa Galloway
2,020
Ernie Klatt
2,820
Marty Richey
1,010
31.
If necessary, record the year-end adjusting entry for the uncollectible accounts.
If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.…
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:
June 8.
Wrote off account of Kathy Quantel, $8,540.
Aug. 14.
Received $6,060 as partial payment on the $15,290 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct. 16.
Received the $8,540 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt.
Dec. 31
Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan
$2,480
Greg Gagne
1,540
Amber Kisko
5,890
Shannon Poole
3,420
Niki Spence
940
Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts.Rustic Tables Company prepared the following aging schedule for its accounts receivable:
Aging Class (Numberof Days Past Due)
Receivables Balanceon December 31…
Chapter 8 Solutions
FINANCIAL & MANAGERIAL ACCW/CENGAGENOWV
Ch. 8 - What are the three classifications of receivables?Ch. 8 - Dans Hardware is a small hardware store in the...Ch. 8 - What kind of an account (asset, liability, etc.)...Ch. 8 - After the accounts are adjusted and closed at the...Ch. 8 - A firm has consistently adjusted its allowance...Ch. 8 - Which of the two methods of estimating...Ch. 8 - Neptune Company issued a note receivable to...Ch. 8 - If a note provides for payment of principal of...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Direct write-off method Journalize the following...Ch. 8 - Allowance method Journalize the following...Ch. 8 - Percent of sales method At the end of the current...Ch. 8 - Analysis of receivables method At the end of the...Ch. 8 - Note receivable Prefix Supply Company received a...Ch. 8 - Accounts receivable turnover and days sales in...Ch. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Entries for uncollectible accounts, using direct...Ch. 8 - Entries for uncollectible receivables, using...Ch. 8 - Entries to write off accounts receivable Creative...Ch. 8 - Providing for doubtful accounts At the end of the...Ch. 8 - Number of days past due Toot Auto Supply...Ch. 8 - Aging of receivables schedule The accounts...Ch. 8 - Estimating allowance for doubtful accounts Evers...Ch. 8 - Adjustment for uncollectible accounts Using data...Ch. 8 - Estimating doubtful accounts Outlaw Bike Co. is a...Ch. 8 - Entry for uncollectible accounts Using the data in...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Effect of doubtful accounts on net income During...Ch. 8 - Effect of doubtful accounts on net income Using...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Entries for bad debt expense under the direct...Ch. 8 - Determine due date and interest on notes Determine...Ch. 8 - Entries for notes receivable Valley Designs issued...Ch. 8 - Entries for notes receivable The series of five...Ch. 8 - Entries for notes receivable, including year-end...Ch. 8 - Entries for receipt and dishonor of note...Ch. 8 - Entries for receipt and dishonor of notes...Ch. 8 - Prob. 25ECh. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Details of notes receivable and related entries...Ch. 8 - Notes receivable entries The following data relate...Ch. 8 - Sales and notes receivable transactions The...Ch. 8 - Allowance method entries The following...Ch. 8 - Aging of receivables; estimating allowance for...Ch. 8 - Compare two methods of accounting for...Ch. 8 - Prob. 4PBCh. 8 - Prob. 5PBCh. 8 - Prob. 6PBCh. 8 - Prob. 1MADCh. 8 - Analyze Ralph Lauren Ralph Lauren Corporation (RL)...Ch. 8 - Analyze L Brands L Brands, Inc. (LB) sells womens...Ch. 8 - Compare Ralph Lauren and L Brands Use the data in...Ch. 8 - Prob. 5MADCh. 8 - Prob. 1TIFCh. 8 - Interest computations Bev Wynn, vice president of...Ch. 8 - Prob. 4TIFCh. 8 - Allowance for doubtful accounts For several years,...
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