At the beginning of the current period, Flounder Corp. had balances in Accounts Receivable of $224,000 and in Allowance for Doubtful Accounts of $10,080. During the period, it had net credit sales of $896,000 and collections of $854,560. It wrote off uncollectible accounts receivable of $8,176. Uncollectible accounts are estimated to total $28,000 at the end of the period. (Omit recording cost of goods sold.) (a-c) Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a), (b), and (c) below. (a) Record sales and collections during the period. (b) Record the write-off of uncollectible accounts during the period. (c) Record bad debt expense for the period.

At the beginning of the current period, Flounder Corp. had balances in Accounts Receivable of $224,000 and in Allowance for Doubtful Accounts of $10,080. During the period, it had net credit sales of $896,000 and collections of $854,560. It wrote off uncollectible accounts receivable of $8,176. Uncollectible accounts are estimated to total $28,000 at the end of the period. (Omit recording cost of goods sold.) (a-c) Enter the beginning balances for Accounts Receivable and Allowance for Doubtful Accounts in a tabular summary. Use the summary to record transactions (a), (b), and (c) below. (a) Record sales and collections during the period. (b) Record the write-off of uncollectible accounts during the period. (c) Record bad debt expense for the period.

Name: At the beginning of the current period, Flounder Corp. had balances i
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Description: At the beginning of the current period, Flounder Corp. had balances in Accounts Receivable of $224,000 and in Allowance forDoubtful Accounts of $10,080. During the period, it had net credit sales of $896,000 and collections of $854,560. It wrote off

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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Pichai Party Supplies reported an allowance for doubtful accounts of $24,000 at the beginning of the fiscal year and $32,000 at the end of the fiscal year. During the year, the company recognized bad debt expense of $30,000. What amount did the company record as accounts receivables write-offs during the year? $30,000. $22,000. None of the answers are correct. $32,000. $24,000.
The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of ABC Corporation are P500,000 and P50,000. Net credit sales totaled P4,500,000 during the year while collections amounted to P4,400,000. Bad debts expense for the year is P30,000. Included in the collections was a P10,000 account that was written off in the prior year and was recovered during the current year. What is the net realizable value of the Accounts Receivable as of the end of the year? The answer is 520000. Explain how can we arrive at this answer.
At the beginning of the current period, Skysong, Inc. had balances in Accounts Receivable of $197,000 and in Allowance for Doubtful Accounts of $9,040 (credit). During the period, it had net credit sales of $862,700 and collections of $838,670. It wrote off as uncollectible accounts receivable of $7,477. However, a $3,049 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,310 at the end of the period. (Omit cost of goods sold entries.) (a-d) (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 the uncollectible account during the period. (d) Prepare the entry to record bad debt expense for the period.
During the year, credit sales amounted to $800,000. Cash collected on credit sales amounted to $760,000, and $18,000 has been written off. At the end of the year, the company adjusted for bad debts expense using the percent-of-sales method and applied a rate, based on past history, of 2.5%. The ending balance of Accounts Receivable would be:
Alpaca Consulting Inc reported net sales of $1,500,000 for the year. Also, at at the end of the year, the company reported balances of $390,000 and $3,800 of accounts receivables and allowance for doubtful accounts, respectively. All amounts and balances have normal balances. REQUIRED: 1. Assume the company estimates its bad debts as 1.20% of net sales. Record the required adjusting entry to record bad debts. The journal must be properly formatted. 2. Assume the company estimates its uncollectible accounts as 5% of accounts receivable. Record the required adjusting entry to record bad debts. The journal must be properly formatted.
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At the beginning of the current period, Sunland company had balances in accounts receivables of $201,900 and in Allowance for Doubtful Accounts of $9,590 (credit). During the period, it had credit sales of $875,700 and collections of $796,820. It was written off as uncollectible accounts receivable of $7,410. However, a $2,808 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,830 at the end of the period (Omit the cost of goods sold entries). a) Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. b) What is the net realizable value of the receivables at the end of the period?
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The December 31, 20X7 statement of financial position of Howson Limited showed Trade Accounts Receivable of $450, 000 and a credit balance in Allowance for Doubtful Accounts of $ 45,000. During 20X8, the following transactions occurred: service revenue billed on account, $1,500,000; collections from customers, $1,300,000; accounts written off $37,000; previously written off accounts of $4,000 were collected. Required: (a) Record the 20X8 transactions. (b) If the company uses the percentage of receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 5% of trade accounts receivable, what is the adjusting entry at December 31, 20X8?