HORNGREN'S FIN.+MGRL..:MANAG.CHP.-MYLAB
7th Edition
ISBN: 9780136503613
Author: MILLER-NOBLES
Publisher: PEARSON
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Chapter 8, Problem 8.37BP
1.
To determine
Introduction:
Journal entries: The journal entries are prepared by the organization to record the daily transactions that are non-economic and economic in nature. The ledger accounts are prepared based on the journal entries.
To prepare: The
2.
To determine
Introduction:
Journal entries: The journal entries are prepared by the organization to record the daily transactions that are non-economic and economic in nature. The ledger accounts are prepared based on the journal entries.
To show: The net account receivable balance in the
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1) Accounting for uncollectible accounts using the allowance method (aging-of-receivables) and reporting receivables on the balance sheet
At September 30, 2018, the accounts of Roxbury Medical Center (RMC) include the following:
Accounts Receivable
$154,000
Allowance for Bad Debts (credit balance)
3,700
During the last quarter of 2018, RMC completed the following selected transactions:
Sales on account, $465,000. Ignore Cost of Goods Sold.
Collections on account, $441,800.
Wrote off accounts receivable as uncollectible: Jenkins, Co., $1,900; Sony, $800; and Smith, Inc., $500
Recorded bad debts expense based on the aging of accounts receivable, as follows:
Age of Accounts
1–30 Days
31–60 Days
61–90 Days
Over 90 Days
Accounts Receivable
$ 97,000
$ 37,000
$ 17,000
$ 14,000
Estimated percent uncollectible
0.2%
3.5%
29%
32%
Page Break
Requirements
1.Open T-accounts for Accounts Receivable…
Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $18,330 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
Aging Class (Numberof Days Past Due)
Receivables Balanceon December 31
Estimated Percent ofUncollectible Accounts
0-30 days
$293,000
1
%
31-60 days
110,000
8
61-90 days
35,000
20
91-120 days
13,000
55
More than 120 days
18,000
80
Total receivables
$469,000
Ace Company uses the Aging of receivables method to account for uncollectible
accounts. The company had the following balances on January 01, 2019.
Part A
Accounts receivable..
.$2,800,000
Allowance for uncollectible accounts... .
.$88,800 (credit)
The company completed the following transactions during 2019.
• April 20- Wrote off the balance of $1,000 from Shari Wickham's account as
uncollectible.
• November 27 Re-instated the account of Louis Benn and recorded the
collection of $1,500 as payment in full for her account which had been
written off earlier.
• December 31st-
i. Recorded the uncollectible account expense based on the aging
schedule. The schedule showed that $124,500 of accounts receivable
was estimated as uncollectible.
ii. Made the closing entry for the uncollectible expense account.
Requirements:
1. Prepare journal entries for each transaction (No narrations required)
2. Prepare the Allowance for Uncollectible and the Accounts Receivable
accounts based on the…
Chapter 8 Solutions
HORNGREN'S FIN.+MGRL..:MANAG.CHP.-MYLAB
Ch. 8 - Prob. 1QCCh. 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 - Prob. 6QCCh. 8 - Prob. 7QCCh. 8 - Prob. 8QCCh. 8 - Prob. 9QCCh. 8 - Prob. 10QC
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 occurs when a business factors its...Ch. 8 - What occurs when a business pledges its...Ch. 8 - Prob. 9RQCh. 8 - Prob. 10RQCh. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - When using the allowance method, how are accounts...Ch. 8 - Prob. 14RQCh. 8 - Prob. 15RQCh. 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. 19RQCh. 8 - Prob. 20RQCh. 8 - Prob. 21RQCh. 8 - Prob. 22RQCh. 8 - Prob. 23RQCh. 8 - Prob. 24RQCh. 8 - Prob. 8.1SECh. 8 - Prob. 8.2SECh. 8 - Prob. 8.3SECh. 8 - Prob. 8.4SECh. 8 - Prob. 8.5SECh. 8 - Prob. 8.6SECh. 8 - Prob. 8.7SECh. 8 - Prob. 8.8SECh. 8 - Prob. 8.9SECh. 8 - Prob. 8.10SECh. 8 - Prob. 8.11SECh. 8 - Prob. 8.12SECh. 8 - Prob. 8.13SECh. 8 - Defining common receivables terms Match the terms...Ch. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19ECh. 8 - Prob. 8.20ECh. 8 - Prob. 8.21ECh. 8 - Prob. 8.22ECh. 8 - Prob. 8.23ECh. 8 - Prob. 8.24ECh. 8 - Prob. 8.25ECh. 8 - Prob. 8.26ECh. 8 - Prob. 8.27ECh. 8 - Prob. 8.28ECh. 8 - Prob. 8.29APCh. 8 - Prob. 8.30APCh. 8 - Prob. 8.31APCh. 8 - Prob. 8.32APCh. 8 - Prob. 8.33APCh. 8 - Prob. 8.34APCh. 8 - Prob. 8.35APCh. 8 - Prob. 8.36BPCh. 8 - Prob. 8.37BPCh. 8 - Prob. 8.38BPCh. 8 - Prob. 8.39BPCh. 8 - Prob. 8.40BPCh. 8 - Prob. 8.41BPCh. 8 - Prob. 8.42BPCh. 8 - Prob. 8.43CPCh. 8 - Prob. 8.44PSCh. 8 - Prob. 8.1CTDCCh. 8 - Prob. 8.2CTDCCh. 8 - Prob. 8.1CTFC
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- Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.arrow_forwardMercy Hospital has the following balances on December 31, 2024, before any adjustment: Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group Amount Receivable Estimated Percent Uncollectible Not yet due $50,000 15% 0 to 30 days past due 11,000 20% 31 to 90 days past due 8,000 45% More than 90 days past due 1,000 85% Total $70,000 Required:1. Estimate the amount of uncollectible receivables.2. Record the adjusting entry for uncollectible accounts on December 31, 2024.3. Calculate net accounts receivable reported in the balance sheet.arrow_forwardMercy Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $70,000; Allowance for Uncollectible Accounts = $1,400 (credit). Mercy estimates uncollectible accounts based on an aging of accounts receivable as shown below. Age Group AmountReceivable Estimated PercentUncollectible Not yet due $50,000 15% 0 –30 days past due 11,000 20% 31– 90 days past due 8,000 45% More than 90 days past due 1,000 85% Total $70,000 Required:1. Estimate the amount of uncollectible receivables.2. Record the adjustment for uncollectible accounts on December 31, 2021.3. Calculate net accounts receivable.arrow_forward
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