Account Titles and Explanation(To record sales on account)(To record collection of accounts receivable)DebitCredit100 Assume the following information for Tamarisk Corp.Accounts receivable (beginning balance)Allowance for doubtful accounts (beginning balance)Net credit salesCollectionsWrite-offs of accounts receivableCollections of accounts previously written off$151,00011,500950,000907,0005,6001,600Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable.(a)Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titlesare automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the accounttitles and enter O for the amounts.)

Journal Entry :— It is an act of recording transactions in books of account when transaction…

Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off $151,000 11,500 950,000 (a) 907,000 5,600 1,600 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.)

Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off $151,000 11,500 950,000 (a) 907,000 5,600 1,600 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.)

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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At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance for doubtful accounts of $ 12,000 (credit). During the period, it had net credit sales of $ 1,200,000 and collections of $ 1,050,000. It wrote as uncollectible accounts receivable of $ 9,500 However, a $4,500 account previously written off as uncollectible was recovered at the end of period. Uncollectible accounts are estimated to total $35,000 at the end of period. a. Prepare the entries to record sales and collections during the period ? b. Prepare the entry to record the write-off of uncollectible accounts during the period? C. Prepare the entries to record the recovery of uncollectible accounts during the period? d. Prepare the entry to record bad debt expense for the period ? . Determine the ending balances in account receivable and allowance for doubtful accounts ? f. Determine the net realizable value ? Can you help me with these questions?
The following information is available for Quality Book Sales' sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 $ 124,760 Allowance for doubtful accounts, January 1, Year 2 3,050 Sales on account, Year 2 808,820 Collection on accounts receivable, Year 2 840,222 After several collection attempts, Quality Book Sales's wrote off $2,770 of accounts that could not be collected. Quality Book Sales estimates that 0.75 percent of sales on account will be uncollectible. Required: Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. Note: Round your final answer to nearest whole dollar amount. (2) The net realizable value of receivables at the end of Year 2. No
3. Suppose you have the following information Accounts Receivable balance 50,000. Estimated uncollectable accounts 4% of accounts receivable. previous allowance for doubtful accounts credit balance 2,500. prepare the necessary adjusting journal entry. *
Tanning Company analyzes its receivables to estimate uncollectible accounts. The accounts receivable balance is $368,000 and credit sales are $1,000,000. An aging of accounts receivable estimates that $29,440 of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? a. Account Debit Credit Bad Debt Expense 29,440 Allowance for Doubtful Accounts 29,440 b. Account Debit Credit Bad Debt Expense 27,440 Allowance for Doubtful Accounts 27,440 c. Account Debit Credit Bad Debt Expense 94,320 Allowance for Doubtful Accounts 94,320 d. Account Debit Credit Bad Debt Expense 31,440 Allowance for Doubtful Accounts 31,440
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The ADA has the below table regarding its account receivable: Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
Present the journal entry necessary to record each of the following items; assuming King Company uses the Allowance method of accounting for Uncollectible Accounts (Bad Debts). 1. Uncollectible Accounts Expense for the year is estimated to be 6% of Net Sales. Net Sales for the year are $100,000 and the Allowance account has a $600 credit balance 2. A $20,000 note is received from a customer on account. 3. The $800 balance in an individual customer's account is written off as uncollectible. 4. The company received $200 from a customer whose account had been previously written off as uncollectible. 5
Rapture Company had the following information for the current year relating to accounts receivable: Accounts receivable, January 1 1,300,000 Credit sales 5,400,000 Collections from customers, excluding recovery 4,750,000 125,000 Accounts written off Collections of accounts written off in prior year, Customer credit was not reestablished 25,000 Estimated collectible receivables per aging At December 31 165,000 What is the balance of accounts receivable before allowance for doubtful accounts on December 31?
Selected data for the Erdin Corporation for the year ended Decmeber 31, 20x5 is provided below: Credit sales Accounts receivable written off Recoveries of previously written of accounts receivable Allowance for doubtful accounts balance, January 1, 20x5 Accounts receivable, December 31, 20x5 Erdin estimates that 0.8% of sales will be uncollectible. Required - $4,500,000 36,500 1,800 33,000 cr. 625,000 Write the journal entries to record the accounts receivable written off, the recoveries and the bad debt expense. Calculate the ending balance in the allowance for doubtful account at December 31, 20x5. Note that the accounts receivable and recoveries have been accounted for in the ending Accounts Receivable balance.
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. Accounts receivable 1/6 balance 849,555 Allowance for doubtful debts 1/6 balance 12,100 During June, the following transactions occurred: Revenue earned on credit, $1,195,000. Sales returns, $24,100. Accounts receivable collected, $1,400,000. Accounts written off as uncollectible, $15,851. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June. Ignore GST. Required: (a) Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account. (b) Showhowaccountsreceivableandtheallowancefordoubtfuldebtswouldappearonthebalance sheet at 30 June. (c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June,…
A trial balance before adjustment included the following: Accounts receivable Allowance for doubtful accounts Sales revenue Sales returns and allowances Debit $140,000 Credit $ 730 610,000 8,000 Estimates of uncollectible accounts are expected to be 5% of gross accounts receivable Use the information above to determine the following: 1) Net sales (on the income statement for the period)? 2) Accounts receivable (on the balance sheet at the end of the period)? 3) Bad debt expense? 4) Allowance for doubtful accounts had a credit balance of $5,500 at the beginning of the period. What amount of receivables was written off during the period? 5) If an additional $500 of receivables were written off during the period, what would bad debt expense have been?