PA5. 9.2 The following accounts receivable information pertains to Luxury Cruises.Past-Due CategoryAccounts Receivable TotalPercentage Uncollectible0-30 days31-90 daysOver 90 days$1,166,350577,870324,45015%33%48%A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheetaging of receivables method.B. Record the year-end 2018 adjusting journal entry for bad debt.C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; recordthe year-end entry for bad debt, taking this into consideration.D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $206,770; recordthe year-end entry for bad debt, taking this into consideration.E. On January 24, 2019, Luxury Cruises identifies Landon Walker's account as uncollectible in the amountof $4,650. Record the entry for identification. 1Problem PA53Past DueTotal CategoryPercentageUncollectableAcct. Receivable TotalCategoryUncollectable0-30 days31-90 daysOver 90 daysTotal Estimated Uncollectable Bad Debt$$1,166,350.00577,870.00324,450.0015%633%...$48%...8...910POST.11DATEDESCRIPTIONREF.DEBITCREDIT1 20-2 Dec.1213311214331541651517161831719818209192110102211112312311224131325141426151527161628311717291818301919312020322121333435

A Past Due Account Receivable Total % Uncollectible 0-30 $ 1,166,350 15% $ 174,953…

-Due Category Accounts Receivable Tot 0-30 days 31-90 days ver 90 days $1,166,350 577,870 324,450 mine the estimated uncollectible bad debt for Luxury receivables method. d the year-end 2018 adjusting journal entry for bad d

-Due Category Accounts Receivable Tot 0-30 days 31-90 days ver 90 days $1,166,350 577,870 324,450 mine the estimated uncollectible bad debt for Luxury receivables method. d the year-end 2018 adjusting journal entry for bad d

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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My Home CengageNOWv2 | Online teaching and learning reso... 10.2 Calculate the Cost of Goods Sold and Ending In.. еBook Print Item Jars Plus recorded $862,430 in credit sales for the year and $489,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. 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. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,670, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. If an amount box does not require an entry, leave…
Debit Accounts receivable $730000 Allowance for uncollectible accounts 7500 Net credit sales Credit O $47750 O $145000. $36500, O $133750. $2900000 Bonita estimates that 5% of the gross accounts receivable will prove to be uncollectible. After adjustment at December 31, 2025, the allowance for uncollectible accounts should have a credit balance of
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Question 6 Flyzopen Limited had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Current Accounts 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $150,000 15,000 10,000 7,000 10,000 $192.000 Uncollectible 1% 2% 6% 12% 30% Required: (a) Prepare the adjusting entry on December 31, 2022, to recognize bad debts expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $900 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts. 2
Notes Payable issued a 90-day, 9% note for 37,000 to a creditor on account the effects on the accounts and financial statements of recording () the issuance of the note and (b) the paymen at maturityincluding interest no account or activity is affected, select No effectfrom the dropdown list and leave the corresponding number entry box blankEnter account decreases and cash as negative amounts a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note
Problem 7-12 (Algo) Accounts and notes receivable; discounting a note receivable; receivables turnover ratio financial statement effects [LO7-5, 7-6, 7-7, 7-8, 7-9] Chamberlain Enterprises incorporated reported the following receivables in its December 31, 2024, year-end balance sheet: Current assets: accounts Accounts receivable, net of $37,000 in allowance for uncollectible $ 283,000 11,050 390,000 Interest receivable Notes receivable Additional Information: 1. The notes receivable account consists of two notes, a $65,000 note and a $325,000 note. The $65,000 note is dated October 31, 2024, with principal and interest payable on October 31, 2025. The $325,000 note is dated June 30, 2024, with principal and 6% Interest payable on June 30, 2025. 2. During 2025, sales revenue totaled $1,470,000, $1,345,000 cash was collected from customers, and $35,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the…
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Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $33,000 $17,000 Percent uncollectible 8% 15% 30% Total per category ? Total uncollectible ? To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. 0-60 days 61-120 days Over 120 days past due past due past due Accounts receivable Amount $84,000 $11,000 $7,000 Percent uncollectible 8% 15% 30% Total per category ? ? ? Total uncollectible ? Complete the following. A. Complete each table by filling in the blanks. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $33,000 $17,000 Percent uncollectible 8% 15% 30% Total per category Total uncollectible
% of Credit Sales Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 1% of credit sales. Required 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts 982,000 25,000 Net credit sales 685,000 Page Allowance for Doubtful XA Debit General Ledger Accounts Receivable A Debit Bad Debt Expense E Credit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME + General Journal DR CR 44 2 What is the net realizable value of Accounts receivable?
Exercise 7-11 (Algo) Uncollectible accounts; allowance method vs. direct write-off method (L07-5, 7-6] Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $12.000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $200,100, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 22,000. Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off…
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Past-Due Category 0-30 days 31-90 days Over 90 days Accounts Receivable Total $22,480 36,540 15,330 Percentage Uncollectible 6% 17% 25% Based on the aging schedule above, the total uncollectible estimated bad debt for Growth Markets, LLC is [round your answer to the nearest dollar & include the dollar sign, $, in your answer)