Dd.5. During its first year of operations, Precious Gems Collection Inc. had sales of $825,000, all on account. Industry experience suggests that Precious Gems Collection's bad debt expense will be $43,600. Precious Gems Collection ended the year 2019 with accounts receivable of $90,000 and an allowance for uncollectible accounts of $17,500. During 2020, Precious Gems Collectioncompleted the following transactions:1. Credit sales, $1,090,0002. Collections on account, $885,0003. Write-offs of uncollectibles, $19.0004. Bad debt expense, $43,600Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required.Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.)AccountsDebitCredit1.Accounts PayableNow Accounts Receivable2.3.Allowance for Uncollectible AccountsNext. Sales RevenueBad Debt ExpenseCash4.Accounts▼ebitTring the year.DebitCreditLastly, estimate the uncollectible amount for 2020 sales revenue on account.AccountsDebitCreditCredit(...

The allowance for uncollectible accounts is the estimated value of accounts receivable supposed not…

During its first year of operations, Precious Gems Collection Inc. had sales of $825.000, all on account Industry experience suggests that Precious Gems Collection's bad debt expense will be $43.600. Precious Gems Collection ended the year 2019 with accounts receivable of 500.000 and an allowance for uncollectible accounts of $17.500. During 2020, Precious Gems Collection completed the following transactions 1. Credit sales, $1,000,000 2. Collections on account 5805.000 3. White-offs of uncollectibles, $19.000 4. Bad debt expense. 343.600 Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required. Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit 1. Accounts Payable Now Accounts Receivable Allowance for Uncollectible Accounts Bad Debt Expense Cash Next Sales Revenue 2. 3. Accounts 4. Y ebit ▾ ining the year. Debit Credit Lastly, estimate the uncollectible amount for 2020 sales revenue on account Accounts Debit Credit Credit GE

During its first year of operations, Precious Gems Collection Inc. had sales of $825.000, all on account Industry experience suggests that Precious Gems Collection's bad debt expense will be $43.600. Precious Gems Collection ended the year 2019 with accounts receivable of 500.000 and an allowance for uncollectible accounts of $17.500. During 2020, Precious Gems Collection completed the following transactions 1. Credit sales, $1,000,000 2. Collections on account 5805.000 3. White-offs of uncollectibles, $19.000 4. Bad debt expense. 343.600 Journalize the 2020 transactions for Precious Gems Collection. Explanations are not required. Start by recording sales revenue. (Record debits first, then credits. Explanations are not required.) Accounts Debit Credit 1. Accounts Payable Now Accounts Receivable Allowance for Uncollectible Accounts Bad Debt Expense Cash Next Sales Revenue 2. 3. Accounts 4. Y ebit ▾ ining the year. Debit Credit Lastly, estimate the uncollectible amount for 2020 sales revenue on account Accounts Debit Credit Credit GE

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

Complete requirement 1
Given that im) 0.1488144 and d(m) = 0.1417814, find m. 5.
State the recognition and measurement of IFRS 10 and IFRS 3
Apple Juice Corp plans to take up a project that will cost $150,000 of investment in Building and $80,000 in new machinery. Apple Juice Corp has already spent $8000 on research and analysis about the products that will be developed in this unit. By taking up this project, Apple Juice Corp. estimates additional cash flows of $85000 per annum for the next five years. COGS are expected to be 40% of the revenues, SG&A will be 4% of the revenues. This project will require an additional inventory of $60,000 and an increase in payables by $25000 Tax Rate is 20% The target Debt: Equity is 1:4 Cost of new debt: 6% Cost of Equity: Need to calculate using the beta of 0.9, Rf of 4%, and market risk premium of 6% The equipment that would be used has a 3-year tax life. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. The Salvage value of Building and Machinery after 5 years is $100,000. You, as a financial…
E12.17
2.4 With the aid of examples, highlight the differences between the following terms: Over subscription and under subscription
LO 7.4 Name the four main special journals.
What is cpj
Activity 3.5.2.
Where does 4.0312, 2.9931, and 3.5431 came from? Can you explain?
What about requirement 4+5
7. Explain the M&M Proposition I and II using your own words.