At the beginning of the current period, Sunland company had balances in accountsreceivables of $201,900 and in Allowance for Doubtful Accounts of $9,590 (credit). Duringthe period, it had credit sales of $875,700 and collections of $796,820. It was written off asuncollectible accounts receivable of $7,410. However, a $2,808 account previously writtenoff as uncollectible was recovered before the end of the current period. Uncollectibleaccounts are estimated to total $25,830 at the end of the period (Omit the cost of goods soldentries).a) Determine the ending balances in Accounts Receivable and Allowance for DoubtfulAccounts.b) What is the net realizable value of the receivables at the end of the period?

To compute the ending gross balances of accounts receivable, please see the below template.Note: (1)…

Answered: At the beginning of the current period,…

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 end of the current year, Accounts Receivable has a balance of $192,670; Allowance for Doubtful Accounts has a debit balance of $3,676; and credit sales for the year total $1,137,000. Bad debt expense is estimated at 1/2 of 1% of credit sales. a. Determine the amount of the adjusting entry for bad debt expense. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
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At the beginning of the current period, Waterway Industries had balances in Accounts Receivable of $190,800 and in Allowance for Doubtful Accounts of $9,670 (credit). During the period, it had net credit sales of $730,800 and collections of $749,620. It wrote off as uncollectible accounts receivable of $7,511. However, a $3,339 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $23,000 at the end of the period. (Omit cost of goods sold entries.) (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. (Credit account titles are automatically indented when…
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. Record the year-end adjusting entry for 2018 bad debt using the income statement method. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $67,600 and $2,200, respectively. During the year Kincaid reported $173,000 of credit sales. Kincaid wrote off $1,500 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $197,900. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. The amount of uncollectible accounts expense recognized in the Year 2 income statement will be:
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At the end of the current year, Accounts Receivable has a balance of $138,000; the opening balance of the Allowance for Doubtful Accounts was $1,450 and credit sales for the current year is $1,100,000, If estimated amount of uncollectible receivable was estimated at 1.5% of total sales, Calculate the estimated uncollectible value using the % of sales method.
At the end of the current year, Accounts Receivable has a balance of $947,700; Allowance for Doubtful Accounts has a credit balance of $7,201; and credit sales for the year total $3,040,000. Bad debt expense is estimated at 1/2 of 1% of credit sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Adjusted Balance Bad Debt Expense c. Determine the net realizable value of accounts receivable. $
During 2018, yellow Corp. made sales of 370,000 on account. The balances in its Account Receivable and Allowance for doubtful accounts on December 31,2018 were $100,000 and 15,000(credit) respectively. An aging schedule indicated that $22,000 of the receivables would prove uncollectible. The amount of bad debts expenses that had to be recorded was?
The following accounts were found in the ledger of DanDan Co. on December 31 of the current year: Dr. Accounts Receivable - P300,000; Cr. Allowance for bad debts - P8,000; Cr. Cash Sales - P900,000; Cr. Credit Sales - P1,000,000. Analysis indicates that 5% of the outstanding accounts receivable will not be collected. How much will be adjustment necessary on December 31 for Allowance for bad debts?
At the beginning of the current period, Skysong Corp. had balances in Accounts Receivable of $190,400 and in Allowance for Doubtful Accounts of $9,040 (credit). During the period, it had net credit sales of $839,100 and collections of $760,090. It wrote off as uncollectible accounts receivable of $6,576. However, a $3,350 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $26,900 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. (Credit account titles are automatically indented when amount is entered. Do not indent…
On December 31, 20X1, the company reported a debit balance of $100,000 in accounts receivable and a credit balance of $1,500 in the allowance for doubtful accounts. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: The company made a credit sale of $400,000. The company wrote off the uncollectible accounts for $14,000. The company collected the receivable of $6,000 that had been written off previously. Prepare journal entries to record the above three transactions. Assume that 1% of the company’s accounts receivable cannot be collected, prepare journal entry to record bad debt expense at the end of 20X2.

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