At year-end (December 31). The Company estimates its bad debts as 0.60% of its annual credit sales of $997,00o. The Companyrecords its Bad Debts Expense for that estimate. On the following February 1. The Company decides that the $499 account of P. Park isuncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.Prepare The Company's journal entries for the transactions.View transaction listJournal entry worksheet13 4>2Record the estimated bad debts expense.Note: Enter debits before credits.DateGeneral JournalDebitCreditDec 31Record entryClear entryView general journal Requlred Informatlon[The following information applies to the questions displayed below.]The following information is available to reconcile The Company's book balance of cash with its bank statement cashbalance as of July 31.a. On July 31, the company's Cash account has a $25,692 debit balance, but its July bank statement shows a $27,181 cashbalance.b. Check No. 3031 for $1.160, Check No. 3065 for $356, and Check No. 3069 for $1,928 are outstanding checks as of July31.c. Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in theaccounting records as $1.230.d. The July bank statement shows the bank collected $5,500 cash on a note for Company. The Company had notrecorded this event before receiving the statement.e. The bank statement shows an $805 NSF check. The check had been received from a customer, Ellie Lemmond. TheCompany has not yet recorded this check as NSF.1. The July statement shows a $8 bank service charge. It has not yet been recorded in miscellaneous expenses becauseno previous notification had been received.g. The Company's July 31 daily cash receipts of $6.632 were placed in the bank's night depository on that date but do notappear on the July 31 bank statement.Required:1. Prepare the bank reconciliation for this company as of July 31.BRANCH COMPANYBank ReconciliationJuly 31Bank statement balanceBook balanceAdd:Add:Deduct:Deduct:Adjusted bank balanceAdjusted book balance

Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.1. DATE GENERAL JOURNAL DEBIT CREDIT Dec 31 Bad debts expense ($997000*0.60%) $5982 Allowance for uncollectible accounts $5982 Feb 1 Allowance for uncollectible accounts 499 Accounts receivable 499 June 5 Accounts receivable 499 Allowance for uncollectible accounts 499 June 5 Cash 499 Accounts receivable 499

Business

Accounting

At year-end (December 31). The Company estimates its bad debts as 0.60% of its annual credit sales of $997.000. The Company records its Bad Debts Expense for that estimate. On the following February 1. The Company decides that the $499 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare The Company's journal entries for the transactions. View transaction list Journal entry worksheet 2 3 4 > Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

At year-end (December 31). The Company estimates its bad debts as 0.60% of its annual credit sales of $997.000. The Company records its Bad Debts Expense for that estimate. On the following February 1. The Company decides that the $499 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare The Company's journal entries for the transactions. View transaction list Journal entry worksheet 2 3 4 > Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Maribel Company had sales of $5,600,000 for the year. During the same year, their uncollectible accounts amounted to $780. If Maribel uses the direct write-off method of accounting for bad debts, which journal entry would be used to write off an account?
Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $100,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: Prepare the November adjusting entry for bad debts. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $93,200, aged as follows: (1) 1–30 days old, $77,000; (2) 31–90 days old, $12,000; and (3) more than 90 days old, $4,200. The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,700 credit balance at December 31. Prepare the December 31 adjusting entry. Show how the various accounts…
Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $10,000 of its accounts receivable from Leer Company. March 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. View transaction list Journal entry worksheet 1 2 3 Record write-off of Leer Company account. Note: Enter debits before credits. Date March 11 General Journal Debit Credit Record entry Clear entry View general journal >
Millennium Associates records bad debt using the allowance, income statement method. They recorded $346,420 in accounts receivable for the year, and $862,270 in credit sales. The uncollectible percentage is 3.4%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,830. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018 If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. 88 A. Dec. 31, 2017 To record bad debt expense, income statement method B. Feb. 5, 2018 To record bad debt for identified customer C. Apr. 15, 2018 To reinstate previously written-off bad debt Apr. 15, 2018 To record full payment II II II
Financial statement are prepared at the end of every month for the J Company. Based on the following information and account balances, what is the correct amount that should be recorded on June 30th to recognize bad debt expense if J Company uses the percentage of receivables method for recognizing bad debt expense? June 30th Balance - Accounts Receivable 25,000 Management's Estimate of Bad Debt Expense based on Accounts Receivable 5% Allowance of Doubtful Accounts (Credit Balance BEFORE June adjustment) 500
please answer in text and every entry should have narrations with all other works
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? A. B. ܫ C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option B Option D Option C Option A Balance Sheet =Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Income Statement Revenue ΝΑ 1,050 ΝΑ ΝΑ Expense ΝΑ ΝΑ (1,050) ΝΑ = Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA
Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $61,000 of its accounts receivable from its customer, P. Moore. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company. Record Solstice's entries for recovery of this bad debt. View transaction list Journal entry worksheet Debit Credit >
Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $130,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $89,900, aged as follows: (1) 1–30 days old, $74,000; (2) 31–90 days old, $12,000; and (3) more than 90 days old, $3,900. The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,550 credit balance at December 31. Prepare the December 31 adjusting entry. 4. Show how the various accounts…
Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 1.00% of its annual credit sales of $608,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $304 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list
Please help me
es Dexter Company uses the direct write-off method. March 11 Dexter determines that it cannot collect $9,800 of its accounts receivable from Leer Company. March 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt. Prepare journal entries to record the above transactions. View transaction list Journal entry worksheet 1 2 3 Record write-off of Leer Company account. Note: Enter debits before credits. Date March 11 General Journal Debit Credit Record entry Clear entry View general journal >