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Lopez & Company, located in the beautiful Puget Sound, provided the following post-closing trial balance for the year ended December 31, 2022 11 ACCOUNT Cash Accounts Receivable Allowance for doubtful accounts Inventory Equipment Accumulated Depreciation - Equipment Accounts Payable Capital, Lopez TOTAL DEBIT $ 72,000 CREDIT 110,000 $ 8,250 56,000 300,000 120,000 137,500 272,250 $ 538,000 $ 538,000 During the fiscal year 2023, the company had the following select transactions: 1. Net sales of $1,320,000. Credit sales are 30% and the rest are cash sales 2. Cash collections from credit customers totaled $416,800 3. Write-offs of uncollectible accounts $14,800 4. At the end of the year, the company estimates that 7.5% of accounts receivable are uncollectible REQUIRED (a) Calculate the accounts receivable balance on December 31, 2023 (b) Calculate the bad debts expense for year 2023 (c) Calculate the adjusted ending balance of the allowance for doubtful accounts on December 31, 2023 (a) Accounts Receivable balance on December 31, 2023 (b) Bad debts expense for year 2023 (c) Adjusted Allowance for Doubtful Accounts balance on December 31, 2023

Lopez & Company, located in the beautiful Puget Sound, provided the following post-closing trial balance for the year ended December 31, 2022 11 ACCOUNT Cash Accounts Receivable Allowance for doubtful accounts Inventory Equipment Accumulated Depreciation - Equipment Accounts Payable Capital, Lopez TOTAL DEBIT $ 72,000 CREDIT 110,000 $ 8,250 56,000 300,000 120,000 137,500 272,250 $ 538,000 $ 538,000 During the fiscal year 2023, the company had the following select transactions: 1. Net sales of $1,320,000. Credit sales are 30% and the rest are cash sales 2. Cash collections from credit customers totaled $416,800 3. Write-offs of uncollectible accounts $14,800 4. At the end of the year, the company estimates that 7.5% of accounts receivable are uncollectible REQUIRED (a) Calculate the accounts receivable balance on December 31, 2023 (b) Calculate the bad debts expense for year 2023 (c) Calculate the adjusted ending balance of the allowance for doubtful accounts on December 31, 2023 (a) Accounts Receivable balance on December 31, 2023 (b) Bad debts expense for year 2023 (c) Adjusted Allowance for Doubtful Accounts balance on December 31, 2023

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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Lopez & Company, located in the beautiful Puget Sound, provided the following post-closing trial balance for the year ended December 31, 2022 11 Cash ACCOUNT Accounts Receivable Allowance for doubtful accounts Inventory Equipment Accumulated Depreciation - Equipment Accounts Payable Capital, Lopez TOTAL DEBIT CREDIT 72,000 110,000 $ 8,250 56,000 300,000 120,000 137,500 272,250 $ 538,000 $ 538,000 During the fiscal year 2023, the company had the following select transactions: 1. Net sales of $1,320,000. Credit sales are 30% and the rest are cash sales 2. Cash collections from credit customers totaled $416,800 3. Write-offs of uncollectible accounts $14,800 4. At the end of the year, the company estimates that 7.5% of accounts receivable are uncollectible REQUIRED (a) Calculate the accounts receivable balance on December 31, 2023 (b) Calculate the bad debts expense for year 2023 (c) Calculate the adjusted ending balance of the allowance for doubtful accounts on December 31, 2023 (a) Accounts Receivable balance on December 31, 2023 (b) Bad debts expense for year 2023 (c) Adjusted Allowance for Doubtful Accounts balance on December 31, 2023
Transcribed Image Text:Lopez & Company, located in the beautiful Puget Sound, provided the following post-closing trial balance for the year ended December 31, 2022 11 Cash ACCOUNT Accounts Receivable Allowance for doubtful accounts Inventory Equipment Accumulated Depreciation - Equipment Accounts Payable Capital, Lopez TOTAL DEBIT CREDIT 72,000 110,000 $ 8,250 56,000 300,000 120,000 137,500 272,250 $ 538,000 $ 538,000 During the fiscal year 2023, the company had the following select transactions: 1. Net sales of $1,320,000. Credit sales are 30% and the rest are cash sales 2. Cash collections from credit customers totaled $416,800 3. Write-offs of uncollectible accounts $14,800 4. At the end of the year, the company estimates that 7.5% of accounts receivable are uncollectible REQUIRED (a) Calculate the accounts receivable balance on December 31, 2023 (b) Calculate the bad debts expense for year 2023 (c) Calculate the adjusted ending balance of the allowance for doubtful accounts on December 31, 2023 (a) Accounts Receivable balance on December 31, 2023 (b) Bad debts expense for year 2023 (c) Adjusted Allowance for Doubtful Accounts balance on December 31, 2023
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