a. During the year 20X1, Aeryn Company had net credit sales of $970,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts. b. Equipment purchased by Moloney Consultancy for $27,140 on January 2, 20X1, has an estimated useful life of 8 years and an estimated salvage value of $2,100. What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 20X1? c. On December 31, 20X1, Fasano Music Studio owed wages of $6,300 to its employees, who are paid weekly. d. On December 31, 20X1, Fasano Music Studio owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $6,300 of accrued wages for its employees. e. On December 31, 20X1, Fasano Music Studio owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $6,300 of accrued wages for its employees. or each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 0x1 worksheet

a. During the year 20X1, Aeryn Company had net credit sales of $970,000. Past experience shows that 0.5 percent of the firm's net credit sales result in uncollectible accounts. b. Equipment purchased by Moloney Consultancy for $27,140 on January 2, 20X1, has an estimated useful life of 8 years and an estimated salvage value of $2,100. What adjustment for depreciation should be recorded on the firm's worksheet for the year ended December 31, 20X1? c. On December 31, 20X1, Fasano Music Studio owed wages of $6,300 to its employees, who are paid weekly. d. On December 31, 20X1, Fasano Music Studio owed the employer's social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $6,300 of accrued wages for its employees. e. On December 31, 20X1, Fasano Music Studio owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $6,300 of accrued wages for its employees. or each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 0x1 worksheet

Name: For each of the above independent situations, prepare the adjusting en
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Description: For each of the above independent situations, prepare the adjusting entries that must be made on the December 31, 20X1, worksheet. Exercise 12.3 (Algo) Preparing adjustments for uncollectible accounts, depreciation, andpayroll items. LO 12-2a. During

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 68E: Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule...

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20. Record the entry for write-off Choose * Sales returns and allowances * Bad debt expense * Accounts Payable * Allowance for Uncollectible Account * Accumulate depreciation * Accounts Receivable * Cash
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5 Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $39,000 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $4,000 in cash. July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 12%, $57,000 note payable. ? Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $27,000 cash from Fargo Bank by signing a 60-day, 7%, $27,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 _? Paid the amount due on the note to Fargo Bank at the maturity date. 3. Determine the interest expense recorded in the adjusting entry at the end of Year 1. Note: Do not round…
ook ht rint rences In its first year of operations, Cloudbox has credit sales of $230,000. Its year-end balance in accounts receivable is $13,000, and the company estimates that $3,000 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $29,500, Cash is $21,500, and Prepaid Rent is $3,750. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the year-end adjusting entry to estimate bad debts expense. View transaction list Journal entry worksheet 1 Record the year-end adjusting entry to estimate bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Bad debts expense 8 Allowance for doubtful accounts Debit Credit
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