[The following information applies to the questions displayed below.) The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1. Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals Transactions for Year 2 Debit $6,450 18,480 22,700 $47,630 Credit $1,820 7,960 21,300 16,550 $47,630 1. LGS acquired an additional $11,700 cash from the issue of common stock. 2. LGS purchased $59,800 of inventory on account. 3. LGS sold inventory that cost $61,500 for $94,300. Sales were made on account. 4. The company wrote off $1,030 of uncollectible accounts. 5. On September 1, LGS loaned $7,000 to Eden Company The note had an 6 percent interest rate and a one-year term. 6. LGS paid $15,640 cash for operating expenses. 7. The company collected $85,470 cash from accounts receivable. 8. A cash payment of $45,740 was paid on accounts payable. 9. The company paid a $5,600 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,800. The cost of goods sold was $2,000. The credit card company charges a 5 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 2 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2.
[The following information applies to the questions displayed below.) The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31, Year 1. Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings Totals Transactions for Year 2 Debit $6,450 18,480 22,700 $47,630 Credit $1,820 7,960 21,300 16,550 $47,630 1. LGS acquired an additional $11,700 cash from the issue of common stock. 2. LGS purchased $59,800 of inventory on account. 3. LGS sold inventory that cost $61,500 for $94,300. Sales were made on account. 4. The company wrote off $1,030 of uncollectible accounts. 5. On September 1, LGS loaned $7,000 to Eden Company The note had an 6 percent interest rate and a one-year term. 6. LGS paid $15,640 cash for operating expenses. 7. The company collected $85,470 cash from accounts receivable. 8. A cash payment of $45,740 was paid on accounts payable. 9. The company paid a $5,600 cash dividend to the stockholders. 10. Accepted credit cards for sales amounting to $3,800. The cost of goods sold was $2,000. The credit card company charges a 5 percent service charge. The cash has not been received. 11. Uncollectible accounts are estimated to be 2 percent of sales on account. 12. Recorded the accrued interest at December 31, Year 2.
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section: Chapter Questions
Problem 1AP
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
A-N ?
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Transcribed Image Text:Journal entry worksheet
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A
B C D E F
Record the issuance of additional common stock.
Note: Enter debits before credits.
Event
1.
Record entry
General Journal
Clear entry
G H
Debit
N
Credit
View general journal
![Required information
[The following information applies to the questions displayed below.]
The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31,
Year 1.
Cash
Accounts receivable.
Allowance for doubtful accounts.
Inventory
Accounts payable
Common stock
Retained earnings
Totals
Transactions for Year 2
Debit
$6,450
18,480
22,700.
$47,630
Credit
$1,820
7,960
21,300
16,550
$47,630
1. LGS acquired an additional $11,700 cash from the issue of common stock.
2. LGS purchased $59,800 of inventory on account.
3. LGS sold inventory that cost $61,500 for $94,300. Sales were made on account.
4. The company wrote off $1,030 of uncollectible accounts.
5. On September 1, LGS loaned $7,000 to Eden Company The note had an 6 percent interest rate and a one-year term.
6. LGS paid $15,640 cash for operating expenses.
7. The company collected $85,470 cash from accounts receivable.
8. A cash payment of $45,740 was paid on accounts payable.
9. The company paid a $5,600 cash dividend to the stockholders.
10. Accepted credit cards for sales amounting to $3,800. The cost of goods sold was $2,000. The credit card company
charges a 5 percent service charge. The cash has not been received.
11. Uncollectible accounts are estimated to be 2 percent of sales on account.
12. Recorded the accrued interest at December 31, Year 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7f0a31e-149e-4057-91bc-41e0ddd41717%2Faa971b4e-1352-40ac-af73-2fc5cf36854f%2Fwgayvg9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following post-closing trial balance was drawn from the accounts of Little Grocery Supplier (LGS) as of December 31,
Year 1.
Cash
Accounts receivable.
Allowance for doubtful accounts.
Inventory
Accounts payable
Common stock
Retained earnings
Totals
Transactions for Year 2
Debit
$6,450
18,480
22,700.
$47,630
Credit
$1,820
7,960
21,300
16,550
$47,630
1. LGS acquired an additional $11,700 cash from the issue of common stock.
2. LGS purchased $59,800 of inventory on account.
3. LGS sold inventory that cost $61,500 for $94,300. Sales were made on account.
4. The company wrote off $1,030 of uncollectible accounts.
5. On September 1, LGS loaned $7,000 to Eden Company The note had an 6 percent interest rate and a one-year term.
6. LGS paid $15,640 cash for operating expenses.
7. The company collected $85,470 cash from accounts receivable.
8. A cash payment of $45,740 was paid on accounts payable.
9. The company paid a $5,600 cash dividend to the stockholders.
10. Accepted credit cards for sales amounting to $3,800. The cost of goods sold was $2,000. The credit card company
charges a 5 percent service charge. The cash has not been received.
11. Uncollectible accounts are estimated to be 2 percent of sales on account.
12. Recorded the accrued interest at December 31, Year 2.
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