4) Matiere Co. completed the following transactions during 2019 and 2020:DateTransactions2019Dec. 31Estimated that bad debt expenses for the year was 3% of credit sales of $385,000and recorded that amount as expense.31 Made the closing entry for bad debt expense.2020Mar. 26 Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignorethe cost of goods sold.Sep. 15 Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collectfrom her.Nov. 10 Received $5,500 from Sanders, along with a letter stating her intention to pay herdebt in full within 30 days. Reinstated her account in full.Received the balance due from Sanders.Dec.31 Made a compound entry to write off the following accounts as uncollectible: CurtMajor, $2,200. Bernadette Lalonde, $962.50; Ellen Smart, $1,470.31 Estimated that bad debt expense for the year was 2% of credit sales of $490,000and recorded the expense.Made the closing entry for bad debt expense.31a. Record the transactions in the general journal. No explanations are necessary.b. Post to the ledger by using T-accounts.

Bad Debts are those debt from which business has made credit sales in past and amount has not been…

4) Matiere Co. completed the following transactions during 2019 and 2020: Date Transactions 2019 Dec. 31 Estimated that bad debt expenses for the year was 3% of credit sales of $385,000 and recorded that amount as expense. 31 Made the closing entry for bad debt expense. 2020 Mar. 26 Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignore the cost of goods sold. Sep. 15 Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collect from her. Nov. 10 Received $5,500 from Sanders, along with a letter stating her intention to debt in full within 30 days. Reinstated her account in full. рay her Dec. Received the balance due from Sanders. Made a compound entry to write off the following accounts as uncollectible: Curt Major, $2,200. Bernadette Lalonde, $962.50; Ellen Smart, $1,470. 31 Estimated that bad debt expense for the year was 2% of credit sales of $490,000 and recorded the expense. 31 Made the closing entry for bad debt 31 expense. Record the transactions in the general journal. No explanations are necessary. a. b. Post to the ledger by using T-accounts.

4) Matiere Co. completed the following transactions during 2019 and 2020: Date Transactions 2019 Dec. 31 Estimated that bad debt expenses for the year was 3% of credit sales of $385,000 and recorded that amount as expense. 31 Made the closing entry for bad debt expense. 2020 Mar. 26 Sold inventory to Mabel Sanders, $10,037.50, on credit terms of 2/10, n/30. Ignore the cost of goods sold. Sep. 15 Wrote off Mabel Sanders's account as uncollectible after repeated efforts to collect from her. Nov. 10 Received $5,500 from Sanders, along with a letter stating her intention to debt in full within 30 days. Reinstated her account in full. рay her Dec. Received the balance due from Sanders. Made a compound entry to write off the following accounts as uncollectible: Curt Major, $2,200. Bernadette Lalonde, $962.50; Ellen Smart, $1,470. 31 Estimated that bad debt expense for the year was 2% of credit sales of $490,000 and recorded the expense. 31 Made the closing entry for bad debt 31 expense. Record the transactions in the general journal. No explanations are necessary. a. b. Post to the ledger by using T-accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2023 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $36,000 $ 462,000 During 2024, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Percentage of Year- End Receivables in Group Percent Uncollectible 70% 20 5% 15 5 20 5 40 Over 120 days Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, theallowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-endaccounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal yearends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2018 balance sheet?
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Carson's Bakery operates its business on a calendar year-end and uses 1% of Credit Sales to estimate bad debt expense. The company presents the following information at December 31, 2020 before any adjusting entries have been made. Account DR CR Accounts receivable 978,000 Allowance for doubtful accounts 23,750 667,500 Net credit sales What will the company record for bad debt expense? Debit choose your answer.. type your answer... Credit choose your answer... type your answer...
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