8:15ull 4G OAANot Secure – moodle.kent.edu.auBE9-3 During its first year of operations, Gavin Company had credit sales of $3,000,000;$600,000 remained uncollected at year-end. The credit manager estimates that $31,000 ofthese receivables will become uncollectible.(a) Prepare the journal entry to record the estimated uncollectibles.(b) Prepare the current assets section of the balance sheet for Gavin Company. Assumethat in addition to the receivables it has cash of $90,000, inventory of $130,000, andprepaid insurance of $7,500.BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and anallowance for doubtful accounts of $54,000. On January 24, 2018, the company learns thatits receivable from Megan Gray is not collectible, and management authorizes a write-offof $6,200.(a) Prepare the journal entry to record the write-off.(b) What is the cash realizable value of the accounts receivable (1) before the write-off and(2) after the write-off?BE9-7 Kingston Co. uses the percentage-of-receivables basis to record bad debt expense.It estimates that 1% of accounts receivable will become uncollectible. Accounts receivableare $420,000 at the end of the year, and the allowance for doubtful accounts has a creditbalance of $1,500.(a) Prepare the adjusting journal entry to record bad debt expense for the year.(b) If the allowance for doubtful accounts had a debit balance of $800 instead of a creditbalance of $1,500, determine the amount to be reported for bad debt expense.E9-4 Menge Company has accounts receivable of $93,100 at March 31. Credit terms are2/10, n/30. At March 31, Allowance for Doubtful Accounts has a credit balance of $1,200prior to adjustment. The company uses the percentage-of-receivables basis for estimatinguncollectible accounts. The company's estimate of bad debts is shown below.Estimated PercentageUncollectibleAge of AccountsBalance, March 311-30 days31-60 days61–90 daysOver 90 days$60,00017,6008,5007,0002.0%5.0%20.0%50.0%$93,100Instructions(a) Determine the total estimated uncollectibles.(b) Prepare the adjusting entry at March 31 to record bad debt expense.

Hey there, since multiple questions are posted only the first question will be answered. Kindly…

BE9-3 During its first year of operations, Gavin Company had credit sales of $3,000,000; $600,000 remained uncollected at year-end. The credit manager estimates that $31,000 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (b) Prepare the current assets section of the balance sheet for Gavin Company. Assume that in addition to the receivables it has cash of $90,000, inventory of $130,000, and prepaid insurance of $7,500.

BE9-3 During its first year of operations, Gavin Company had credit sales of $3,000,000; $600,000 remained uncollected at year-end. The credit manager estimates that $31,000 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (b) Prepare the current assets section of the balance sheet for Gavin Company. Assume that in addition to the receivables it has cash of $90,000, inventory of $130,000, and prepaid insurance of $7,500.

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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