During May 2020, Kaili Company recorded the following:a. Sales totaled $60,300 of which sales on account totaled $53,600 with cash sales totaling$6,700. Ignore Cost of Goods Sold.b. Collections on account totaled, $34,700.c. Write-offs of uncollectible receivables, $1,760.d. Recovery of receivable previously written of totaled, $470.Journalize transactions for Kaili Company for May 2020 assuming Kaili Company uses thedirect write-off method.DateTOCDescriptionDebitCreditIJournalize transactions for Kaili Company for May 2020 assuming Kaili Company uses theallowance method.

The objective of the question is to journalize the transactions for Kaili Company for May 2020 using…

Answered: During May 2020, Kaili Company recorded…

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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On the December 31, 2021 balance sheet of Tiffany Company, the current receivables consisted of the following: Trade accounts receivable 232,500 ( 5,000) 7,500 Allowance for uncollectible accounts Claim against shipperfor goods lost in transit (Oct. 2022) Selling price of unsold goods sent by Tiffany to consignee 65,000 Security deposit on lease of warehouse used for storing Inventories 75,000 Total 375,000 At December 31, 2021, how much should be Tiffany's total current net receivables?
At December 31, 2021, Pina Co. reported the following information on its balance sheet. Accounts receivable $960,100 Less: Allowance for doubtful accounts 78,200 During 2022, the company had the following transactions related to receivables. 1. Sales on account $3,739,000 2. Sales returns and allowances 49,400 3. Collections of accounts receivable 2,814,000 4. Write-offs of accounts receivable deemed uncollectible 90,500 5. Recovery of accounts previously written off as uncollectible 28,000 1. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2 .Enter the January 1, 2022, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use…
On January 1, 2018, Keiasia Company’s Accounts Receivable and the Allowance for Uncollectible Accounts showed balances of $24,000 and $1,200 respectively. During the year, the company reported $64,000 of credit sales, and cash collections of receivables amounted to $58,000. During the year, the company wrote of $1,400 of delinquent accounts. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. The amount of bad debts expense recognized in the 2018 income statement will be: A. $1,230 B. $1,630 C. $230 D. $500 Answer is B, how do you get to 1,630
At December 1, 2023, Imalda Inc. reported the following information on its statement of financial position: Accounts receivable Allowance for doubtful accounts $154,000 4,500 (credit balance) The following transactions were completed during December 2023: December 5 Sold merchandise items for $67,000. An amount of $19,000 was received in cash and the rest on account; terms 2/10, n/60. The total cost of sales was $35,000. December 12 Collected amount due from customers for credit sales made on December 5. December 20 Collected $90,000 in cash from customers for credit sales made in November 2023. December 26 One of Imalda's customers that owed $3,000 to the company experienced financial problems and was forced to close its business in December. The full amount was considered uncollectible. Total Estimated % uncollectible The company records sales revenue net of the sales discount. If a customer pays after the discount period, the sales discount that is forfeited is recorded in a…
4) During June 2019, Andy Company had the following transactions: 1 Sales of $185,000 ($142,000 on account, $43,000 for cash). 2. Collections on account, $128,000 3 Write-offs of uncollectible receivables, S1,900 4. Recovery of receivable previously written off $600. Additional information Ignore Cost of Goods Sold Andy uses the allowance method for uncollectibles Andy estimates that 4.50% of its accounts receivable will be uncollectible. On June 1, 2019, the Accounts Receivable balance was $25.000 and the Allowance for Bad Debts had a normal account balance of $1,125. Requirements: a. Prepare the journal entries for the June 2019 transactions. b. prepare the june 30, 2019 adjusting journal entry. c. what is the net realizable value of acccounts receivable on june 30, 2019(after the adjusting journal has been posted)?
The following are the receivables balances of Hendrix Company as of January 1, 2021 (the beginning of the fiscal year). $ 85,000 331,750 Notes receivable Accounts receivable Allowance for doubtful accounts Transactions during 2021 include the following: 1) Sales to customers of $2,017,800 were made during 2021. Customers have 60 days to pay for the product. 2) Accounts receivable of $1,942,000 were collected. 3) $7,000 was received in payment of an account which was written off the books as uncollectible during 2021. 4) Customer accounts of $30,200 were written off during 2021. 16,700 (Credit balance) 5) At year-end (December 31, 2021), an aging of the accounts receivable balance showed the following. Use the below information to record bad debt expense for 2021. Age Under 30 days 30-90 days 91-180 days 181-360 days Over 360 days Amount $169,250 100,000 55,900 38,200 14,000 Estimated % Uncollectible 0.8% 1.6 5.0 15.0 40.0 SHA Instructions a) Prepare the necessary journal entries for…
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
Task 2: Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31 December 2021. Use the company's information from its annual reports: Receivables as of 31 December 2020 $4,468,392 $4,972,722 $45,349,943 Receivables as of 31 December 2021 Sales revenue for year ended 31 December 2021 1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31 December 2021. (Use the average receivables to calculate the ratio). Not Accounting receivable Average Day's sales in receivable = 154; 2. Interpret the calculated ratio. 3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject company's DSO ratio, critically evaluate the company's credit policy and its implications.
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash $ 24,940 Accounts receivable 46,300 Note receivable, due 2020 8,100 Merchandise inventory 34,300 Prepaid insurance 2,210 Supplies 1,270 Equipment 42,100 Accumulated depreciation, equipment 22,100 Note payable to bank, due 2020 21,000 Accounts payable 27,590 Interest payable 210 Sales 523,000 Sales discounts 1,800 Cost of goods sold 384,300 Accounts Receivable at December 31, 2018, was $56,050. Merchandise inventory at December 31, 2018, was $57,200. Based on the account balances above, calculate the following: c. The current ratio Current Ratio Choose Numerator Choose Denominator Current Ratio ÷ =
As of December 31, 2017 Cash $ 17,900 Accounts payable $ 29,500 Accounts receivable $ 39,600 Notes payable 15,400 Less: Allowance for doubtful accounts 3,200 36,400 Unearned revenue 3,800 Inventory 61,100 Total current liabilities $ 48,700 Prepaid expenses 7,400 Total current assets $ 122,800 The following errors in the corporation's accounting have been discovered: Keane collected $ 5,200 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company's controller recorded the amount as revenue. 1. The inventory amount reported included $ 2,300 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $ 1,600 had been received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30. 2. Sales for the first day in January 2018 in the amount of $ 11,100 were entered in the sales journal as of December 31, 2017. Of these, $ 7,000 were sales on…
At December 31, 2019, Sheridan Co. reported the following information on its balance sheet. Accounts receivable $956,500 Less: Allowance for doubtful accounts 80,900 During 2020, the company had the following transactions related to receivables. 1. Sales on account $3,693,300 2. Sales returns and allowances 49,200 3. Collections of accounts receivable 2,806,300 4. Write-offs of accounts receivable deemed uncollectible 91,000 5. Recovery of bad debts previously written off as uncollectible 27,650 Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. Enter the January 1, 2020, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. Prepare the journal entry to record bad debt expense for 2020, assuming that an aging of accounts receivable…
On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: $ 13,500 Cash Purchases $2,650,000 Accounts Receivable Purchases Returns and Allowances 72,000 93,000 Merchandise Inventory, Purchases Discounts 37,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense January 1, 2019 Estimated Returns Inventory 257,000 48,000 35,000 300,000 Office Supplies 3,000 45,000 Prepaid Insurance 4,500 9,000 Land 150,000 Depreciation Expense- Store Equipment Accumulated Depreciation- Store Equipment Miscellaneous Selling Expense Office Salaries Expense 270,000 6,000 12,000 55,900 Store Equipment 175,000 Office Equipment Accumulated Depreciation- Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable 78,500 Rent Expense 28,000 Insurance Expense 3,000 Office Supplies Expense 16,000 2,000 27,800 Depreciation Expense- Office Equipment Miscellaneous Administrative Expense 50,000 1,500 3,000 3,500 Unearned Rent 8,300…

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