Jetson Company had the following information on their Statement of Financial Position for Dec 2024. Debit Credit Cash $25,000 Accounts receivable 250,000 Allowance for expected credit losses 10,000 Accounts payable $50,000 Bank loan payable 150,000 Jetson Company uses percentage of receivables approach to estimating uncollectible accounts and they apply a 4% rate to it. A. Record the year end journal entry required for Jetson Company for this.

Jetson Company had the following information on their Statement of Financial Position for Dec 2024. Debit Credit Cash $25,000 Accounts receivable 250,000 Allowance for expected credit losses 10,000 Accounts payable $50,000 Bank loan payable 150,000 Jetson Company uses percentage of receivables approach to estimating uncollectible accounts and they apply a 4% rate to it. A. Record the year end journal entry required for Jetson Company for this.

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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Ruiz Company's Accounts Receivable balance at December 31 was $150,000 and there was a balance of $700 in the Allowance for Uncollectible Accounts. Sales for the year were $900,000. The firm estimates credit losses for the year at 1.5% of sales. After the appropriate adjusting entry is made for credit losses, what is the net amount of accounts receivable included in the current assets at year-end? Select one: a. $150,000 b. $135,800 c. $162,700 d. $138,700 e. None of the above
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At January 1, 2024, Tarjee Inc. reported the following information on its statement of financial position: Accounts receivable $530,000 40,000 Allowance for expected credit losses ,40,000 During 2024, the company had the following summary transactions for receivables: Sales on account, $1,930,000; cost of goods sold, $1,061,500; return rate, 5% Selling price of goods returned, $76,000; cost of goods returned to inventory, $41,800 Collections of accounts receivable, $1,700,000 Write-offs of accounts receivable deemed uncollectible, $53,000 Collection of accounts previously written off as uncollectible, $12,000 After considering all of the above transactions, total estimated uncollectible accounts, $32,000 Prepare the journal entries to record each of the above summary transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
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