X Company, a merchandiser, prepares monthly financial statements. On June 30, its accountant made adjusting entries to record: • $5,909 of June interest on a bank loan to be paid in July • $1,782 of wages that were earned by employees in June but to be paid in July • $4,656 of rent and insurance for June that was prepaid on June 1 but had expired • $3,594 of depreciation on factory equipment • a $2,556 June utility bill received in June, to be paid in July What would be the effect of these entries on total liabilities in June? O A: $10,247 OB: $13,629 OC: $18,126 OD: $24,107 OE: $32,063OF: $42,644

X Company, a merchandiser, prepares monthly financial statements. On June 30, its accountant made adjusting entries to record: • $5,909 of June interest on a bank loan to be paid in July • $1,782 of wages that were earned by employees in June but to be paid in July • $4,656 of rent and insurance for June that was prepaid on June 1 but had expired • $3,594 of depreciation on factory equipment • a $2,556 June utility bill received in June, to be paid in July What would be the effect of these entries on total liabilities in June? O A: $10,247 OB: $13,629 OC: $18,126 OD: $24,107 OE: $32,063OF: $42,644

Financial Accounting

15th Edition

ISBN:9781337272124

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

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

Chapter9: Receivables

Section: Chapter Questions

Problem 17E: Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of...

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Reviewing payroll records indicates that one-fifth of employee salaries that are due to be paid on the first payday in January, totaling $15,000, are actually for hours worked in December. There was no previous balance in the Salaries Payable account at that time. Based on the information provided, make the December 31 adjusting journal entry to bring the balances to correct.
Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount J. Jackson $10,000 L. Stanton 9,500 C. Barton 13,100 S. Fenton 2,400 Total $35,000 Required (a)Journalize the write-offs for the current year under the direct write-off method. (b)Journalize the write-offs for the current year under the allowance method. Also, journalize the adjusting entry for uncollectible receivables assuming the company made $2,400,000 of credit sales during the year and the industry average for uncollectible receivables is 1.5% of credit sales.
Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount J. Jackson $10,000 L. Stanton 9,500 C. Barton 13,100 S. Fenton 2,400 Total $35,000 Required (a) Journalize the write-offs for the current year under the direct write-off method. (b) Journalize the write-offs for the current year under the allowance method. Also, journalize the adjusting entry for uncollectible receivables assuming the company made $2,400,000 of credit sales during the year and the industry average for uncollectible receivables is 1.5% of credit sales. (c) How much higher or lower would Morry Company’s net income have been under the direct write-off method than under the allowance method? Indicate the answer choice that best completes the statement or answers the question. 40. Which of the following is a guideline for behaving ethically? I. Identify the consequences of a decision and its effect on others. II.…
At the end of October, the ABC Company needed to make accrual adjustments to the accounts, using the following information: Depreciation for the month is £50 An inventory count on October 31 revealed that 125units were in the company’s warehouse. The cost flow assumption followed for the preparation of statements is FIFO. On September 1, ABC Company issued a 3-month, annual rate 6%, $1,000 Note Payable to Credit Bank. Capital and interest are to be paid at the end of November. Prepare a worksheet showing the October transactions and the October accrual adjustments for the ABC Company. The work sheet is attached below, which is solvevd. But I wonder how to get the lastest amount of inventory, which is 125? Can you please show me the calculation process?
The accounting records and bank statement of Orison Supply Store provide the following information at the end of April. The closing 'Cash' account balance was $28,560, and the bank statement shows a closing balance of $32,000. On reviewing the bank statement it is found an account customer has deposited $2,000 into the bank account for a March sale and the monthly insurance premium of $4,500 was automatically charged to the account. Interest of $5,10 was paid by the bank and a bank fee of $50 was charged to the account. A payment of $1,500 to a supplier has been recorded twice in the accounts. After the ,calculation of the "ending reconciled cash balance", what is the balance of the 'cash' account?
Use the following to answer questions 20 – 22 At the beginning of the year; MB, Inc.'s allowance for uncollectible accounts had a beginning balance of $6,500. On January 22nd, MB wrote off the A/R from customer C for $340 20. Record the entry for write-off 2$ 31st); total accounts written off were $5,540 (including the write off for customer C). What is the balance in the allowance for uncollectible accounts after all the write-offs? 21. By the end of the year (December 22. $ How much did bad debt expense change when the company wrote off the accounts receivables?
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The general ledger of the Jumper Incorporated is showing an Accounts Receivable balance of $80,000, Sales Revenue of $650,000, and Sales Returns and Allowances of $30,000. If Jumper Inc used the direct write-off method to account for uncollectible accounts, do the adjusting journal entry on December 31st, assuming Jumper Inc determines that John Hancock's $2,500 balance is uncollectable.
For a business that uses the allowance method of accounting for uncollectible receivables: Journalize the entries to record the following: Use correct journal format. Just use the month for the date. (1) Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $850,000, and the contra asset account before adjustment has a debit balance of $4000. Analysis of the receivables (aging) indicates uncollectible receivables of $17,200. (2) In March of the next year, the $720 owed by Fronk Co. on account is written off as uncollectible. (3) In November of the next year, $400 of the Fronk Co. account is reinstated and payment of that amount is received. (4) In December of the next year, $250 is received on the $800 owed by Dodger Co. and the remainder is written off as uncollectible.
For a business that uses the allowance method of accounting for uncollectible receivables:Journalize the entries to record the following: Use correct journal format. Just use the month for the date.(1) Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $850,000, and the contra asset account before adjustment has a debit balance of $4000. Analysis of the receivables (aging) indicates uncollectible receivables of $17,200.(2)In March of the next year, the $720 owed by Fronk Co. on account is written off as uncollectible.In November of the next year, $400 of the Fronk Co. account is reinstated and payment of that amount is received.In December of the next year, $250 is received on the $800 owed by Dodger Co. and the remainder is written off as uncollectible.
The ledger of Larkspur Company at the end of the current year shows Accounts Receivable $92,000, Credit Sales $850,000, and Sales Returns and Allowances $37,000. (a) (b) (c) If Larkspur uses the direct write-off method to account for uncollectible accounts, journalize the entry if on July 7 Larkspur determines that Matisse company's $900 balance is uncollectible. Assume Larkspur uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a credit balance of $1,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Assume Larkspur uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful…
The company estimates future uncollectible accounts. The company determines $4,400 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record the adjusting entry for uncollectible accounts. Note: I really need to see full calculations because I don't understand how to get these numbers.