QS 7-6 (Algo) Allowance method for bad debts LO P2 Gomez Corporation uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,300 account of a customer, C. Green. On March 9, it receives a $1,800 payment from Green. 1. Prepare the journal entry for January 31. el entries for March 9: assume no additional money is expected from Green.

QS 7-6 (Algo) Allowance method for bad debts LO P2 Gomez Corporation uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,300 account of a customer, C. Green. On March 9, it receives a $1,800 payment from Green. 1. Prepare the journal entry for January 31. el entries for March 9: assume no additional money is expected from Green.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter8: Receivables

Section: Chapter Questions

Problem 8.18EX: Entries for bad debt expense under the direct write-off and allowance methods Seaforth International...

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Nillsons Nursery uses the direct write-off method for recording bad debts. Required Journalize the following selected entries: 2012 Apr. 10Write off the account of P. A. Seldon as uncollectible, 458. July 27Write off the account of J. M. Weller as uncollectible, 268. Check Figure Total amount debited to Bad Debts Expense 726
Requirea information Problems 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 100,000 $ 250,000 Problems 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. View transaction list a. Bad debts are estimated to be 4% of credit sales. b. Bad debts are estimated to be 3% of total sales. c. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Journal entry worksheet
PROBLEM 9 Robin Company uses the following allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31, 2021. No. of Days Outstanding 0-30 days 31-60 days Over 60 days The following information is available for the current year: Net credit sales for the year Allowance for uncollectible accounts, January 1, 2021 Allowance for uncollectible accounts, December 31, 2021 (before adjustment) Amount P500,000 200,000 100,000 Probability of Collection 98% 90% 80% P4,000,000 5,000 (cr.) 2,000 (dr.) Explain how to get the Uncollectible accounts expense Explain the allowance for uncollectible accounts reported in word's financial statements for 2021.
QS 9-6 (Algo) Allowance method for bad debts LO P2 Gomez Corporation uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,800 account of a customer, C. Green. On March 9, it receives a $1,300 payment from Green.1. Prepare the journal entry for January 31.2. Prepare the journal entries for March 9; assume no additional money is expected from Green.
Exercise 7-4 (Algo) Direct write-off method LO P1 Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $10,000 of its accounts receivable from Leer Company. March 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions.
! Required information Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts Problem 7-2A (Algo) Part 1 $ 50,000 $ 125,000 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. View transaction list
Required information Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below) At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 400,000 $1,000,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $ 900,000 debit $ 7,200 debit Problem 7-2A (Algo) Part 3 3. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Cument assets Accounts receivable Less: Allowance for doubtful accounts 이
QS 9-3 (Algo) Recovering a bad debt LO P1 Solstice Company determines on October 1 that it cannot collect $55,000 of its accounts receivable from its customer, P. Moore. It uses the direct write-off method to record this loss as of October 1. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company.Record Solstice’s entries for recovery of this bad debt.
On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Debit Credit $ 25,600 47,200 $ 4,700 Inventory Land 20,500 51,000 17,500 Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, Year 2) Common Stock Retained Earnings 2,000 29,000 55,000 40,000 31,100 $161,800 Totals $161,800 During January Year 1, the following transactions occur: 2 Sold gift cards totaling $9,000. The cards are redeemable for merchandise within one year of the purchase date. January January 6 Purchase additional inventory on account, $152,000. January 15 The comapany sales for the first half of the month total $140,000. All of these sales are on account. The cost of the units sold is $76,300. January 23 Receive $125,900 from customers on accounts receivable. January 25 Pay $95,000 to inventory suppliers on accounts payable. January 28 Write off accounts receivable as…
Required information Problems 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 100,000 $ 250,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts Problems 7-2A (Algo) Part 2 Current assets: $225,000 debit $ 1,800 debit 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. EA 0
Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 160,000 Credit sales $ 400,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 120,000 debit Allowance for doubtful accounts $ 1,400 debit An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Required information Problem 9-3A (Algo) Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Does this write-off directly affect Jarden's net income? Uncollectible 1.25% 2.00 6.50 32.75 68.00 Problem 9-3A (Algo) Part 3 3. On June 30 of the next year, Jarden concludes that a customer's $4,700 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income?