9:28 AM 00.1KB/s ll86PP - A:R_-106493777目At December 31, Banana Company reports the following results for its calendar year fromthe adjusted trial balance.I.Credit salesCash salesAccounts ReceivableAllowance for doubtful accounts (creditbalance)Php 8,100,00o2,350,000412.00013,000Required:Prepare the adjusting entry to record Bad Debts Expense using the following independentmethods:a. Sales Method, assuming estimated bad debts is 1%b. Accounts Receivable Method, assuming bad debts is 18%c. Aging of Accounts Receivable, assume the following:50% are current accounts, estimated uncollectible for current accounts is 1%30% are over 31 days to 90 days, estimated uncollectible accounts is 20%20% are over 90 days, estimated uncollectible accounts is 50%111.Lemon Company allows customers to make purchases on credit. The terms of all credit salesare 2/10, n/30, and all sales are recorded at the gross price. Other customers can use a bankcredit card where the bank deducts a 4% service charge for credit card sales and credits thebank account of Lemon immediately when credit card receipts are deposited. White uses theperpetual inventory method.II.JuneSold Php12,000 of merchandise (cost Php7,000) on credit to Grant Inc.Sold Php17,000 of merchandise (cost Php 9,350) to Libby Corp. whouseddaybank credit card, receipts were processed and deposited the same6.Sold Php8,500 of merchandise (cost Php 4,500) on credit to EmmaCompany.Accepted a Php 50,000, 45-day, 6% note dated this day in granting CoryTam a time extension on his past-due account receivable.810Received Grant's check in full payment of the purchase on June 4.Wrote off the account of Z. Westmore against the Allowance forDoubtful Accounts. The Php 1,580 balance stemmed from a credit sale inJanuary.Accepted a Php 75,000, 30-day, 10% note dates this day in granting F.Potter a time extension on his past-due account receivable.121520JulyReceived the amount previously written-off from Z. Westmore.F. Potter dishonored his note when presented for payment.172025Received payment of principal plus interest from Cory Tam.Prepare journal entries to record the above selected transactions and events....

Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

At December 31, Banana Company reports the following results for its calendar year from the adjusted trial balance. I. Credit sales Cash sales Accounts Receivable Allowance for doubtful accounts (credit balance) Php 8,100,000 2,350,000 412,000 13,000 Required: Prepare the adjusting entry to record Bad Debts Expense using the following independent methods: a. Sales Method, assuming estimated bad debts is 1% b. Accounts Receivable Method, assuming bad debts is 18% c. Aging of Accounts Receivable, assume the following: 1 50% are current accounts, estimated uncollectible for current accounts is 1% ii. 30% are over 31 days to 90 days, estimated uncollectible accounts is 20% iii. 20% are over 90 days, estimated uncollectible accounts is 50%

At December 31, Banana Company reports the following results for its calendar year from the adjusted trial balance. I. Credit sales Cash sales Accounts Receivable Allowance for doubtful accounts (credit balance) Php 8,100,000 2,350,000 412,000 13,000 Required: Prepare the adjusting entry to record Bad Debts Expense using the following independent methods: a. Sales Method, assuming estimated bad debts is 1% b. Accounts Receivable Method, assuming bad debts is 18% c. Aging of Accounts Receivable, assume the following: 1 50% are current accounts, estimated uncollectible for current accounts is 1% ii. 30% are over 31 days to 90 days, estimated uncollectible accounts is 20% iii. 20% are over 90 days, estimated uncollectible accounts is 50%

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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Allowance for Doubtful Accounts has a debit balance of $766 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,294. Which of the following entries records the proper adjusting entry for bad debt expense? a.debit Bad Debt Expense, $14,528 credit Allowance for Doubtful Accounts, $14,528 b.debit Bad Debt Expense, $766 credit Allowance for Doubtful Accounts, $766 c.debit Allowance for Doubtful Accounts, $15,294 credit Bad Debt Expense, $15,294 d.debit Bad Debt Expense, $16,060 credit Allowance for Doubtful Accounts, $16,060
The following account balances are those of Music Land Supply Company as of December 31, the end of the fiscal year, before adjustments. Accounts Receivable $ 43,600 Allowance for Doubtful Accounts 180 cr. Credit Sales 470,000 Required: Prepare the necessary adjusting entry to record Bad Debt Expense in each of the following independent cases. a. Uncollectible accounts are estimated at 1.5% of credit sales. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 Dec. 31 Bad Debt Expense fill in the blank 56a9ce08f033003_2 fill in the blank 56a9ce08f033003_3 1 2 Allowance for Doubtful Accounts fill in the blank 56a9ce08f033003_5 fill in the blank 56a9ce08f033003_6 2 b. An aging of the accounts receivable indicates that $6,850 will not be collected. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT…
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At the end of the current year, Accounts Receivable has a balance of $128,310; Allowance for Doubtful Accounts has a debit balance of $3,095; and sales for the year total $947,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
Element Fire Door Services uses the allowance method to record bad debts expense. At the end of June, it is estimated that 1% of Element Fire Door Services accounts receivable will be uncollectable. Accounts receivable at 30 June are $100,000 and the Allowance for doubtful debts has a credit balance of $1,000. What is the journal entry needed to adjust the allowance for doubtful debts at the end of June?
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