CASE 5The following selected accounts appeared in the trial balance of Susan Company as of December 31, 20x2:DebitCreditP150,0002,000,000Installment receivable - 20x1Installment receivable - 20x2Inventory, December 31, 20x1Purchases700,0005,550,00030,000RepossessionInstallment salesP4,250,000Regular sales3,850,000540,000Deferred gross profit - 20x1Operating expenses1,250,000Additional information:• Installment receivable - 20x1 as of December 31, 20x1 is P1,200,000.Inventory of new and repossessed merchandise as of December 31, 20x2 is P950,000.Gross profit percentage of regular sales during the year is 30% based on sales.Repossession was made during the year. It was a 20x1 sale, and the corresponding uncollectedaccount at the time of repossession is P77,500.EQUIRED:11. Total collections in 20x212. Gross profit rate on installment sales for 20x213. Loss on repossession

Gross Profit- Gross profit is a method of calculating total product. If a physical inventory becomes…

CASE 5 The following selected accounts appeared in the trial balance of Susan Company as of December 31 Debit Credit P150,000 2,000,000 Installment receivable - 20x1 Installment receivable - 20x2 Inventory, December 31, 20x1 Purchases 700,000 5,550,000 Repossession 30,000 Installment sales P4,250,000 Regular sales 3,850,000 540,000 Deferred gross profit - 20x1 Operating expenses 1,250,000

CASE 5 The following selected accounts appeared in the trial balance of Susan Company as of December 31 Debit Credit P150,000 2,000,000 Installment receivable - 20x1 Installment receivable - 20x2 Inventory, December 31, 20x1 Purchases 700,000 5,550,000 Repossession 30,000 Installment sales P4,250,000 Regular sales 3,850,000 540,000 Deferred gross profit - 20x1 Operating expenses 1,250,000

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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The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,150. Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $2,360 Greg Gagne 1,470 Amber Kisko 5,620 Shannon Poole 3,260 Niki Spence 900 Dec. 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel Aug. 14 Cash…
The trial balance before adjustment of Ehrlich Company reports the following balances: Dr. Cr. Accounts receivable $420,000 Allowance for doubtful accounts (debit balance) $ 5,000 Sales (all on credit) 2,000,000 Sales returns and allowances 70,000 Instructions – show all calculations a. Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of gross accounts receivable. b. Prepare the entry for the estimated bad debts assuming that the company estimates bad debts based on the percentage of sales method, using 2% of net sales.
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Problem 3 On January 1,2020, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year were P9,000,000. On December 31,2020, what amount should be reported as allowance for uncollectible accounts?
At what amount will accounts receivable for Anderson Company be reported on the balance sheet if the gross receivable balance is $52,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables? Select one: A. $28,200 B. $49,920 C. $52,960 D. $47,000
HOMEWORK 8 - CHAPTER 8 Question 9 of 15 -1 Current Attempt in rrogress Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) $161,000 Allowance for doubtful accounts (beginning balance) ,11,300 Net credit sales ,942,000 Collections 912,000 Write-offs of accounts receivable 5,200 Collections of accounts previously written off 2,200 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. (a) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit
6 Mario Company's Accounts Receivable balance atDecember 31 was $300,000 and there was a credit balance of $1,400 in the Alowance for Doubtful Accounts, The year's sales were $1,800,000. Mario estimates credit losses for the year at 1.5% of sales. After the appropriate adjusting entry is made for credit losses, what is the net amount of accounts receivable included in the current assets at year- end? A) $300,000 B) $271,600 C) $325,400 D) $277,400
Instructions Chart of Accounts General Journal Instructions On December 1, Newton Enterprises sells $300,000 of accounts receivable to a factor without recourse, receives 80% of the value of the factored accounts, and is charged a 8% commission on the gross amount of the factored accounts receivable. Newton normally factors its accounts receivable. Required: Prepare Newton's journal entry.
Book Hint Ask Print References Mc Graw Hill % 5 At December 31, Folgeys Coffee Company reports the following results for its calendar year. $908,000 308,000 Cash sales Credit sales Its year-end unadjusted trial balance includes the following items. T Accounts receivable Allowance for doubtful accounts Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1 total sales and (3) 6% of year-end accounts receivable. View transaction list Journal entry worksheet prt sc ← ] delete backspace home num lock
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