File Home Insert Draw Design Layout ) PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Accounts Receivable Allowance Methods Review Company had net credit sales revenue of $450,000 in 2020. Their Allowance for Bad Debts has a debit balance of $500. Study of prior year's figures indicates 1.5% of net sales are uncollectible and 4.0% of A/R are uncollectible. December 31, 2020 Age of Accounts Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Receivable 48,000 26,000 12,000 7,000 3,000 Estimated % 1% 4% 12% 40% Uncollectible 1. Prepare the journal entry to estimate bad debt expense assuming: The company uses the % of sales method The company uses the % of A/R method C. The company uses the aging of A/R method a. b. 2. Prepare the journal entry to write off $800 A/R from Newton Company on March 2, 2021. 3. Prepare the journal entries to record collection of $500 from Newton Company on June 5, 2021.

File Home Insert Draw Design Layout ) PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing Accounts Receivable Allowance Methods Review Company had net credit sales revenue of $450,000 in 2020. Their Allowance for Bad Debts has a debit balance of $500. Study of prior year's figures indicates 1.5% of net sales are uncollectible and 4.0% of A/R are uncollectible. December 31, 2020 Age of Accounts Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Receivable 48,000 26,000 12,000 7,000 3,000 Estimated % 1% 4% 12% 40% Uncollectible 1. Prepare the journal entry to estimate bad debt expense assuming: The company uses the % of sales method The company uses the % of A/R method C. The company uses the aging of A/R method a. b. 2. Prepare the journal entry to write off $800 A/R from Newton Company on March 2, 2021. 3. Prepare the journal entries to record collection of $500 from Newton Company on June 5, 2021.

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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Tammany Professional Engineers uses the Percentage of Receivables method to account for bad debt. The following is a summary of Tammany’s Accounts Receivable Aging Report. Cash Sales $42,000 Credit Sales $21,000 Allowance for Uncollectible Accounts December 31, 2020 $4,375 Current > 30 >60 >90 $115,000 $98,000 $75,000 $15,000 Estimated Uncollectible 1% 2% 4% 5% Required: Prepare the total estimate of uncollectible accounts and give the amount of the required adjustment. Do not prepare a journal entry. Please show your work if possible. In addition to submitting your answer here, you should also write it down so you an use it for the next problem.
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Required information [The following information applies to the questions displayed below.] Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts receivable method. The company entered into the following partial list of transactions during the first quarter. a. During January, the company provided services for $44,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $22,000 of accounts receivable. d. On February 15, the company wrote off a $150 account receivable. e. During February, the company provided services for $34,000 on credit. f. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $2,200 to an…
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.