HORNGREN'S FINANCIAL & MANAGERIAL ACCO
16th Edition
ISBN: 9781323425084
Author: MILLER-NOBLES
Publisher: PEARSON C
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Textbook Question
Chapter 8, Problem 8.18E
Use the following information to answer Exercises E8-17 and E8-18.
At January 1, 2016, Hilly Mountain Flagpoles had Accounts Receivable of $31,000, and Allowance for
- a. Sales of $174,000 ($157,000 on account; $17,000 for cash). Ignore Cost of Goods Sold.
- b. Collections on account, $131,000.
- c. Write-offs of uncollectible receivables, $2,200.
Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the
- 1. Journalize Hilly’s transactions that occurred during 2016. The company uses the allowance method.
- 2. Post Hilly’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
- 3. Journalize Hilly’s adjustment to record bad debts expense assuming Hilly estimates bad debts as 3% of accounts receivable. Post the adjustment to the appropriate T-accounts.
- 4. Show how Hilly Mountain Flagpoles will report net accounts receivable on its December 31, 2016, balance sheet.
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Use the following information to answer Exercises E8-18 and E8-19.
January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, Hilltop Flagpoles recorded the following;
Sales of $185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold.
Collections on account, $135,000.
Write-offs of uncollectible receivables, $2,30p.
Accounting for uncollectible accounts using the allowance method (percent-of-sales) and reporting receivables on the balance sheet
Requirements
Journalize Hilltop’s transactions that occurred during 2018. The company uses the allowance method.
Post Hilltop’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
Journalize Hilltops adjustment to record bad debts expense assuming Hilltop estimates bad debts as 3% of credit sales. Post the adjustment to the appropriate T-accounts.
Show how Hilltop Flagpoles will report net accounts receivable…
Use the following information to answer Exercises E8-18 and E8-19.
January 1, 2018, Hilltop Flagpoles had Accounts Receivable of $28,000, and Allowance for Bad Debts had a credit balance of $3,000. During the year, Hilltop Flagpoles recorded the following;
Sales of $185,000 ($164,000 on account; $21,000 for cash). Ignore Cost of Goods Sold.
Collections on account, $135,000.
Write-offs of uncollectible receivables, $2,30p.
Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet
Requirements
Journalize Hilltop’s transactions that occurred during 2018. The company uses the allowance method.
Post Hilltop’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
Journalize Hilltop’s adjustment to record bad debts expense assuming Hilltop estimates bad debts as 10% of accounts receivable. Post the adjustment to the appropriate T-accounts.
Show how Hilltop Flagpoles will report net…
1. Kinney Corporation estimates its uncollectible accounts as a percentage of its credit sales. The rate it uses is 3% and in 2018, its credit sales were $1,500,000.
Required:
a. Prepare journal entries to record the bad debts expense for the year.
b. If Allowance for an uncollectible account has a credit balance of $60,000 before entries in
(a) above, show how Accounts Receivable will be presented in the Balance Sheet of Kinney Corporation.
Chapter 8 Solutions
HORNGREN'S FINANCIAL & MANAGERIAL ACCO
Ch. 8 - Prob. 1QCCh. 8 - When recording credit card or debit card sales...Ch. 8 - Which of the following is a limitation of the...Ch. 8 - The entry to record a write-off of an...Ch. 8 - Brickman Corporation uses the allowance method to...Ch. 8 - Brickmans ending balance of Accounts Receivable is...Ch. 8 - At December 31 year-end, Crain Corporation has an...Ch. 8 - Using the data in the preceding question, what...Ch. 8 - At year-end, Schultz, Inc. has cash of 11,600,...Ch. 8 - Using the data in the preceding question, assume...
Ch. 8 - What is the difference between accounts receivable...Ch. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - When dealing with receivables, give an example of...Ch. 8 - What type of account must the sum of all...Ch. 8 - Prob. 6RQCh. 8 - What are two common methods used when accepting...Ch. 8 - What occurs when a business factors its...Ch. 8 - What occurs when a business pledges its...Ch. 8 - Prob. 10RQCh. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - When using the allowance method, how are accounts...Ch. 8 - Prob. 15RQCh. 8 - Prob. 16RQCh. 8 - How does the percent- of-sales method compute bad...Ch. 8 - How do the percent-of-receivables and aging-of-...Ch. 8 - What is the difference between the...Ch. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 8.1SECh. 8 - Prob. 8.2SECh. 8 - Applying the direct write-off method to account...Ch. 8 - Collecting a receivable previously written...Ch. 8 - Prob. 8.5SECh. 8 - Applying the allowance method (percent-of-sales)...Ch. 8 - Applying the allowance method...Ch. 8 - Prob. 8.8SECh. 8 - Prob. 8.9SECh. 8 - Accounting for a note receivable On June 6,...Ch. 8 - Prob. 8.11SECh. 8 - Recording a dishonored note receivable Midway...Ch. 8 - Prob. 8.13SECh. 8 - Defining common receivables terms Match the terms...Ch. 8 - Prob. 8.15ECh. 8 - Journalizing transactions using the direct...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Use the following information to answer Exercises...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Journalizing transactions using the direct...Ch. 8 - Journalizing credit card sales, note receivable...Ch. 8 - Journalizing note receivable transactions...Ch. 8 - Journalizing note receivable transactions The...Ch. 8 - Journalizing note receivable transactions Like New...Ch. 8 - Evaluating ratio data Chippewa Carpets reported...Ch. 8 - Prob. 8.26ECh. 8 - Prob. 8.27APCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Using ratio data to evaluate a companys financial...Ch. 8 - Prob. 8.34BPCh. 8 - Prob. 8.35BPCh. 8 - Accounting for uncollectible accounts using the...Ch. 8 - Accounting for uncollectible accounts...Ch. 8 - Accounting for notes receivable and accruing...Ch. 8 - Accounting for notes receivable, dishonored notes,...Ch. 8 - Prob. 8.40BPCh. 8 - Prob. 8.41CPCh. 8 - Prob. 8.42PSCh. 8 - Prob. 8.1CTDCCh. 8 - Paulines Pottery has always used the direct...Ch. 8 - Prob. 8.1CTFCCh. 8 - Use Starbucks Corporations Fiscal 2013 Annual...
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