During its first year of operations, Henley Company had credit sales of $3,050,000; $650,000 remained uncollected at year-end. The credit manager estimates that $40,000 of these receivables will become uncollectible. a) Prepare the journal entry to record the estimated uncollectible. b) Prepare the current assets section of the balance sheet for Henley Company. Assume that in addition to the receivables it has cash of $95,000, merchandise inventory of $135,000, and prepaid expenses of $8,000.

During its first year of operations, Henley Company had credit sales of $3,050,000; $650,000 remained uncollected at year-end. The credit manager estimates that $40,000 of these receivables will become uncollectible. a) Prepare the journal entry to record the estimated uncollectible. b) Prepare the current assets section of the balance sheet for Henley Company. Assume that in addition to the receivables it has cash of $95,000, merchandise inventory of $135,000, and prepaid expenses of $8,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Similar questions

On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Need help with this accounting question
During its first year of operations, Crane Company had credit sales of $3,064,300; $655,000 remained uncollected at year-end. The credit manager estimates that $36,900 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Prepare the current assets section of the balance sheet for Crane Company. Assume that in addition to the receivables it has cash of $94,400, inventory of $135,200, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CRANE COMPANY Balance Sheet (Partial) 24 %24 %24
During its first year of operations, Cullumber Company had credit sales of $3,701,300; $657,200 remained uncollected at year-end. The credit manager estimates that $40,500 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Prepare the current assets section of the balance sheet for Cullumber Company. Assume that in addition to the receivables it has cash of $92,900, inventory of $131,400, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CULLUMBER COMPANYBalance Sheet (Partial) Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant…
During its first year of operations, Sheridan Company had credit sales of $3,596,600; $660,700 remained uncollected at year-end. The credit manager estimates that $43,200 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Prepare the current assets section of the balance sheet for Sheridan Company. Assume that in addition to the receivables it has cash of $92,200, inventory of $134,100, and prepaid insurance of $8,100. (List Current Assets in order of liquidity.) SHERIDAN COMPANYBalance Sheet (Partial) $ $…
In its first year of operations, Cloudbox has credit sales of $226,000. Its year-end balance in accounts receivable is $12,600, and the company estimates that $2,800 of its accounts receivable is uncollectible. Prepare the year-end adjusting entry to estimate bad debts expense. Prepare the current assets section of Cloudbox’s classified balance sheet assuming Inventory is $28,500, Cash is $20,500, and Prepaid Rent is $3,650. Note: The company reports Accounts receivable, net on the balance sheet. 1-Record the year-end adjusting entry to estimate bad debts expense. Prepare the current assets section of Cloudbox’s classified balance sheet assuming Inventory is $28,500, Cash is $20,500, and Prepaid Rent is $3,650. Note: The company reports Accounts receivable, net on the balance sheet. CLOUDBOXBalance SheetAssetsCurrent assets Total current assets
During Burns Company's first year of operations, credit sales totaled $180,000 and collections on credit sales totaled $125,000. Burns estimates that bad debt losses will be 1.0% of credit sales. By year-end, Burns had written off $500 of specific accounts as uncollectible. Required: Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. Show the year-end balance sheet presentation for accounts receivable.
In its first year of operations, Cloudbox has credit sales of $240,000. Its year-end balance in accounts receivable is $14,000, and the company estimates that $3,500 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $32,000, Cash is $24,000, and Prepaid Rent is $4,000. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the year-end adjusting entry to estimate bad debts expense. View transaction list Journal entry worksheet < Record the year-end adjusting entry to estimate bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
In its first year of operations, Cloudbox has credit sales of $200,000. Its year-end balance in accounts receivable is $10,000, and the company estimates that $1,500 of its accounts receivable is uncollectible.a. Prepare the year-end adjusting entry to estimate bad debts expense.b. Prepare the current assets section of Cloudbox’s classified balance sheet assuming Inventory is $22,000, Cash is $14,000, and Prepaid Rent is $3,000. Note: The company reports Accounts receivable, net on the balance sheet.
In its first year of operations, Cloudbox has credit sales of $200,000. Its year-end balance in accounts receivable is $10,000, and the company estimates that $1,500 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $22,000, Cash is $14,000, and Prepaid Rent is $3,000. Note: The company reports Accounts receivable, net on the balance sheet.
During Burns Company's first year of operations, credit sales totaled $180,000 and collections on credit sales totaled $125,000. Burns estimates that bad debt losses will be 1.0% of credit sales. By year-end, Burns had written off $500 of specific accounts as uncollectible. Required: 1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense. 2. Show the year-end balance sheet presentation for accounts receivable. Complete this question by entering your answers in the tabs below. Required 1 Required 2 re all appropriate journal entries relative to uncollectible accounts and bad debt expense. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Record the entry to write-off specific accounts. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal