April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable $ 1,980,000 dr. Special accounts receivable 261,000 dr. Accounts receivable-U.S. 115,000 dr. Allowance for doubtfulaccounts 176,950 cr. Allowance for sales discounts 49,500 cr. The following transactions and events are noted: 1. Ananalysis of accounts receivable indicates that $980,000 are still in the discount period. An allowance of $98,000 isneeded for sales discounts. 2. An analysis of accounts receivable indicated that $216,000 of accounts receivable shouldbe written off. Of the remaining balance, 70% was current, and, after the allowance for sales discounts, approximately 5% was deemed doubtful. Of the 30% noncurrent, 65% was doubtful. 3. The U.S. account receivable was recorded whenthe exchange rate was $1.15. The exchange rate at year-end was $1.10. 4. The special account receivable was a singleaccount receivable from a customer with an excellent credit rating that was transferred to a financial institution at adiscount rate of 5% during the period. The cash collected from the financial institution was credited to an account called"Miscellaneous credits." 5. Management has determined that this transaction was to be recorded as a sale/derecognitionbut has not yet made the necessary entry. 6. The company has a note receivable that has not yet been recorded. Thenote is a $98,000, three-year note that bears an interest rate of 5%. Interest is paid annually. The note was issued on 1November 20X7 because of a sale. The market interest rate for accounts of this risk is 10%. Prepare the following journalentries: 1. Record the Allowance for sales discounts. 2. Record the allowances for doubtful accounts. 3. Record the baddebt expenses. 4. Record the entry for exchange loss. 5. Record the cash collected from financial institution was creditedto an account called "Miscellaneous credits."and at a discount rate of 5% during the period. 6. Record the notesreceivable of 98,000, three year note that bears interest rate of 5%. 7. Record the entry for interest receivable anddiscount on notes receivable. Please use the present value tables to calculate as well. Please explain all numbers in detailincluding basic information. Thank you very much in advance.

Journal entry records the accounting transactions of a business in a journal book. All the business…

April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable $ 1,9 80,000 dr. Special accounts receivable 261,000 dr. Accounts receivable-U.S. 115,000 dr. Allowance for doubtful accounts 176,950 cr. Allowance for sales discounts 49,500 cr. The following transactions and events are noted: 1. An analysis of accounts receivable indicates that $980,000 are still in the discount period. An allowance of $98,000 is needed for sales discounts. 2. An analysis of accounts receivable indicated that $216,000 of accounts receivable should

April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable $ 1,9 80,000 dr. Special accounts receivable 261,000 dr. Accounts receivable-U.S. 115,000 dr. Allowance for doubtful accounts 176,950 cr. Allowance for sales discounts 49,500 cr. The following transactions and events are noted: 1. An analysis of accounts receivable indicates that $980,000 are still in the discount period. An allowance of $98,000 is needed for sales discounts. 2. An analysis of accounts receivable indicated that $216,000 of accounts receivable should

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Oo.151. Subject :- Account
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. Expected Percent Accounts Receivable $ 830,000 254,000 86,000 38,000 12,000 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 Uncollectible 1.258 2.00 6.50 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? Does this write-off directly affect Jarden's net income?
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At December 31, Gill Co. reported accounts receivable of $236,000 and an allowance for uncollectible accounts of $1,450 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $1,450 $4.980 $3,270. $4,720
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,150. Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $2,360 Greg Gagne 1,470 Amber Kisko 5,620 Shannon Poole 3,260 Niki Spence 900 Dec. 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel Aug. 14 Cash…
On January 1, Year 1, the Accounts Receivable balance was $29,000 and the balance in the Allowance for Doubtful Accounts was $3,400. On January 15, Year 1, an $980 uncollectible account was written-off. What is the net realizable value of accounts receivable immediately after the write-off? Multiple Choice O O $28,020 $26,580 $25,600 $24,620
The trial balance before adjustment of Ehrlich Company reports the following balances: Dr. Cr. Accounts receivable $420,000 Allowance for doubtful accounts (debit balance) $ 5,000 Sales (all on credit) 2,000,000 Sales returns and allowances 70,000 Instructions – show all calculations a. Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of gross accounts receivable. b. Prepare the entry for the estimated bad debts assuming that the company estimates bad debts based on the percentage of sales method, using 2% of net sales.
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. Expected Percent Uncollectible 1.25% 2.00 6.50 Accounts Receivable Age of Accounts Receivable $ 830,000 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 254,000 86,000 38,000 12,000 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible (#.##%) Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X = = = |||| 32.75 68.00 Estimated Uncollectible $ 0
At December 31, Gill Co. reported accounts receivable of $281,000 and an allowance for uncollectible accounts of $1,600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $8,340. $1,600. $8,430. $6,830.
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 $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable 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 Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 View transaction list X X Date December 31 X Percent Uncollectible (#.##%) X Record entry Required information [The following information applies to the questions displayed below.] Note: Enter debits before credits. On…
This question uses the same facts as the previous question and is repeated for your convenience. The following information relates to Hanover Foods, Inc. for the year 20X1: Accounts receivable (January 1, 20X1) Credit sales during 20X1 Collections from credit customers during 20X1 Customer account written off as uncollectible during 20X1 Allowance for Doubtful (Uncollectible) Accounts $334,000 850,000 725,000 12,000 (this balance is given after writing-off uncollectible accounts and has a credit balance) Estimated uncollectible accounts based on aging analysis If the aging approach is used to estimate bad debts, what amount should be recorded as bad debts expense for 20X1? 1,700 13,200