7 Anger Co.'s accounts payable on December 31, 20x1 had abalance of P2,300,000 before any possible adjustment for thefollowing:a) Goods in transit purchased on credit for P23,000 under an FOBdestination term were recorded and included in the inventorycount on December 31, 20x1 as "goods in transit."b) Anger Co. checks, drawn for P32,000, were found in the safe boxduring the Dec. 31, 20x1 securities count.). Goods purchased under an 'FOB destination, freight collect' termwere received and recorded at the invoice cost of P60,000 on Dec.29, 20x1. The cash payment for the related freight of P5,000 wasdebited to the 'Freight-out account.d) Goods worth P90,000 received on consignment from DishonorCo. were recorded as an increase in accounts payable. The goodsremain unsold as of Dec. 31, 20x1.e) The balance of accounts payable includes P64,000 cost of goodspurchased under an FOB shipping point term that were lost intransit. Anger Co. recorded a corresponding claim against thecarrier.How much is the adjusted balance of accounts payable?b. 2,214,000a. 2,150,000c. 2,240,000d. 2,304,000

When goods are delivered by the seller to the common carrier under the FOB shipping point, however,…

- Anger Co.'s accounts payable on December 31, 20x1 h balance of P2,300,000 before any possible adjustment for following: a Goods in transit purchased on credit for P23,000 under ar destination term were recorded and included in the inve count on December 31, 20x1 as "goods in transit." Anger Co. checks, drawn for P32,000, were found in the sa during the Dec. 31, 20x1 securities count. Goods purchased under an 'FOB destination, freight collect

- Anger Co.'s accounts payable on December 31, 20x1 h balance of P2,300,000 before any possible adjustment for following: a Goods in transit purchased on credit for P23,000 under ar destination term were recorded and included in the inve count on December 31, 20x1 as "goods in transit." Anger Co. checks, drawn for P32,000, were found in the sa during the Dec. 31, 20x1 securities count. Goods purchased under an 'FOB destination, freight collect

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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Concept explainers

Bad Debts

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

100%

7 Anger Co.'s accounts payable on December 31, 20x1 had a
balance of P2,300,000 before any possible adjustment for the
following:
a) Goods in transit purchased on credit for P23,000 under an FOB
destination term were recorded and included in the inventory
count on December 31, 20x1 as "goods in transit."
b) Anger Co. checks, drawn for P32,000, were found in the safe box
during the Dec. 31, 20x1 securities count.
). Goods purchased under an 'FOB destination, freight collect' term
were received and recorded at the invoice cost of P60,000 on Dec.
29, 20x1. The cash payment for the related freight of P5,000 was
debited to the 'Freight-out account.
d) Goods worth P90,000 received on consignment from Dishonor
Co. were recorded as an increase in accounts payable. The goods
remain unsold as of Dec. 31, 20x1.
e) The balance of accounts payable includes P64,000 cost of goods
purchased under an FOB shipping point term that were lost in
transit. Anger Co. recorded a corresponding claim against the
carrier.
How much is the adjusted balance of accounts payable?
b. 2,214,000
a. 2,150,000
c. 2,240,000
d. 2,304,000

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Ee.19.
17.The following information is provided: Unadjusted balance in Allowance for Doubtful Accounts $1,100 (debit)Accounts Receivable, December 31 245,500Sales Returns and Allowances 5,500Sales 850,000Sales Discounts 15,000 Required:1. Prepare the adjusting entry if bad debts are estimated to be 1.5% of net sales.2. Compute the amount of the adjusting entry if bad debts are estimated to be 3% of ending accounts receivable.
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 $ 14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 830,000 Not yet due 1.25 % 254,000 1 to 30 days past due 2.00 86,000 31 to 60 days past due 6.50 38,000 61 to 90 days past due 32.75 12,000 Over 90 days past due 68.00 2. Prepare the adjusting entry to record bad debts expense at December 31. Record the estimated ba debts. Required information 1 Record the estimated bad debts. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal
Required information. [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 $15,000. 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 Uncollectible 1.15% 1.90 6.40 View transaction list View journal entry worksheet 32.25 67.00 2. Prepare the adjusting entry to record bad debts expense at December 31. Note: Round percentage answers to nearest whole percent. Do not round intermediate calculations.
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Required information [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 $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 830,000 Age of Accounts Receivable Not yet due 1 to 30 days past due Expected Percent Uncollectible 1.25% 254,000 2.00 86,000 31 to 60 days past due 6.50 38,000 12,000 61 to 90 days past due Over 90 days past due 32.75 68.00 3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income? Affects Jarden's net income