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Journalize the transactions. The company uses the perpetual and allowance methods. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in the working papers that accompany this text.) Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $12,000; Accounts Receivable, $175,000; Office Supplies. $2.140: Merchandise Inventory. $103.000: Prepaid Rent.

Journalize the transactions. The company uses the perpetual and allowance methods. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in the working papers that accompany this text.) Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $12,000; Accounts Receivable, $175,000; Office Supplies. $2.140: Merchandise Inventory. $103.000: Prepaid Rent.

FINANCIAL ACCOUNTING
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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From the preceding as well as the following additional data on January 1, 2018, complete a-c: Acct. No. Balance Allowance for Doubtful Accounts 114 $4,300 Income Summary 312 Bad Debts Expense 612 a. Journalize the transactions. The company uses the perpetual and allowance methods. b. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in the working papers that accompany this text.) c. Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $12,000; Accounts Receivable, $175,000; Office Supplies, $2,140; Merchandise Inventory, $103,000; Prepaid Rent, $1,050.
Transcribed Image Text:From the preceding as well as the following additional data on January 1, 2018, complete a-c: Acct. No. Balance Allowance for Doubtful Accounts 114 $4,300 Income Summary 312 Bad Debts Expense 612 a. Journalize the transactions. The company uses the perpetual and allowance methods. b. Post to Allowance for Doubtful Accounts, Income Summary, and Bad Debts Expense accounts as needed. (Be sure to record the beginning balance in the Allowance account in the working papers that accompany this text.) c. Prepare a current assets section of the balance sheet. Ending balances needed are as follows: Cash, $12,000; Accounts Receivable, $175,000; Office Supplies, $2,140; Merchandise Inventory, $103,000; Prepaid Rent, $1,050.
13A-4. Seay Company completed the following transactions: 2018 Sold merchandise on account to Roy's Supply, $1,700. Cost of merchandise sold, $1,000. Jan. 9 Jan. 15 Wrote off the account of Pete Ramos as uncollectible because of his death, $400. Mar. 17 Received $450 from Rupe Co., whose account had been written off in 2017. The account was reinstated and the collection recorded. Apr. Received 14% of the $4,000 owed by Lane Daley. The remainder was written off as uncollectible. 9 June The account for Mac's Garage was reinstated for $1,300. The account was written off 3 years ago and collected in full today. 15 Prepared a compound entry to write the following accounts off as uncollectible: Jack's Diner, $140; Kail Auto, $440; Red's Hardware, $750. Oct. 18 Sold merchandise on account to J. B. Rug, $1,500. Cost of merchandise sold, $900. Nov. 12 Dec. Based on an aging of Accounts Receivable, it was estimated that $6,600 will be uncollectible out of a total of $175,000 in Accounts 31 Receivable. Dec. 31 Closed Bad Debts Expense to Income Summary.
Transcribed Image Text:13A-4. Seay Company completed the following transactions: 2018 Sold merchandise on account to Roy's Supply, $1,700. Cost of merchandise sold, $1,000. Jan. 9 Jan. 15 Wrote off the account of Pete Ramos as uncollectible because of his death, $400. Mar. 17 Received $450 from Rupe Co., whose account had been written off in 2017. The account was reinstated and the collection recorded. Apr. Received 14% of the $4,000 owed by Lane Daley. The remainder was written off as uncollectible. 9 June The account for Mac's Garage was reinstated for $1,300. The account was written off 3 years ago and collected in full today. 15 Prepared a compound entry to write the following accounts off as uncollectible: Jack's Diner, $140; Kail Auto, $440; Red's Hardware, $750. Oct. 18 Sold merchandise on account to J. B. Rug, $1,500. Cost of merchandise sold, $900. Nov. 12 Dec. Based on an aging of Accounts Receivable, it was estimated that $6,600 will be uncollectible out of a total of $175,000 in Accounts 31 Receivable. Dec. 31 Closed Bad Debts Expense to Income Summary.
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