North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December31.Account Titles,CashAccounts ReceivablePrepaid RentEquipmentAccumulated DepreciationAccounts PayableIncome Tax PayableDebit$ 11,100Credit5,1002,22820,100$1,1981,198Retained EarningsSales RevenueSalaries and Wages Expense0Utilities Expense24.10011,600BRent ExpenseDepreciation ExpenseIncome Tax ExpenseTotalsOther data not yet recorded at December 31:a. Rent expired during the year, $1,110.b. Depreciation expense for the year, $1,190.c. Utilities used, unrecorded, and unpaid $8,100.d. Income tax expense, $300.1,28046,740$ 74,228$ 74,220

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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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The following information was taken from the accounts receivable records of Sarasota Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $160,000 0.5% 31 – 60 days outstanding 66,000 2.5% 61 – 90 days outstanding 40,200 4.0% 91 – 120 days outstanding 20,600 6.5% Over 120 days outstanding 5,600 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,200 prior to the adjustment (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $3,880 prior to the adjustment.
The following information was taken from the accounts receivable records of Monty Corporation as at December 31, 2020: OutstandingBalance Percentage Estimatedto be Uncollectible 0 – 30 days outstanding $156,000 0.5% 31 – 60 days outstanding 65,400 2.5% 61 – 90 days outstanding 40,000 4.0% 91 – 120 days outstanding 20,800 6.5% Over 120 days outstanding 5,100 10.0% (a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $1,280 prior to the adjustment. (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 titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $4,010 prior to the…
SM Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?
The following accounts and their balances appear in an unadjusted trial balance of CASHEW Company as of December 31, 2021: What is the total current liabilities to be presented in the statement of financial position as of December 31, 2021?
A year end review of Accounts Receivable and estimated uncollectible percentages revealed the following: attached in ss below thankas gwroiwrnio
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A recent annual report for RVC contained the following information (dollars in thousands) at the end of its fiscal year: Year 2 Year 1 Accounts receivable $ 9,077,000 $ 8,620,000 Allowance for doubtful accounts (1,020,000 ) (552,000 ) $ 8,057,000 $ 8,068,000 A footnote to the financial statements disclosed that uncollectible accounts amounting to $816,000 and $426,000 were written off as bad debts during year 2 and year 1, respectively. Assume that the tax rate for RVC was 35 percent. Required: 1. Determine the bad debt expense for year 2 based on the preceding facts.(Hint: Use the Allowance for Doubtful Accounts T-account to solve for the missing value.) (Enter your answers in thousands not in dollars.) 2. Working capital is defined as current assets minus current liabilities. Would the working capital be affected by the write-off of an uncollectible account? 3. Would the net income be affected by the $816,000 write-off during year…
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Selected accounts from Lue Co.’s adjusted trial balance for the year ended December 31 follow. Prepare aclassified balance sheet. Total equity. . . . . . . . . . . . . . . . . . . . . . . . . . . $30,000 Employee federal income taxes payable . . . . . . . . $9,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 Federal unemployment taxes payable . . . . . . . . . . 200Salaries payable . . . . . . . . . . . . . . . . . . . . . . 34,000 FICA—Medicare taxes payable . . . . . . . . . . . . . . . . 725Accounts receivable . . . . . . . . . . . . . . . . . . . 5,100 FICA—Social Security taxes payable . . . . . . . . . . . . 3,100Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 Employee medical insurance payable . . . . . . . . . . 2,000Current portion of long-term debt . . . . . . . . 4,000 State unemployment taxes payable . . . . . . . . . . . . 1,800Notes payable (due in 6 years) . . . . . . . . . . . 10,000 Sales tax payable (due in 2 weeks)…
Maxwell Inc. analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: % Considered Age Group Balance Uncollectible 0-30 days past due $100,000 1% 31-60 days past due 18,000 3% 61-120 days past due 20,000 6% 121-180 days past due 7,000 10% Over 180 days past due 2,000 20% $147,000 The company handles credit losses using the allowance method.The credit balance of the Allowance for Doubtful Accounts is $840 on December 31, before any adjustments.a. Determine the amount of the adjustment for estimated credit losses on December 31.$Answerb. Determine the financial statement effect of a write off of Porter Company’s account on the following May 12, in the amount of $480.Use negative signs with answers, when appropriate.If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the…
Hunter, Inc. analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: % Considered Age Group Balance Uncollectible 0-30 days past due $90,000 1% 31-60 days past due 20,000 2% 61-120 days past due 11,000 5% 121-180 days past due 6,000 10% Over 180 days past due 4,000 25% $131,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $520 on December 31, before any adjustments. a. Determine the amount of the adjustment for estimated credit losses on December 31. $ 0 b. Determine the financial statement effect of a write off of the Rose Company's account on April 10 of the following year in the amount of $425. Use negative signs with answers, when appropriate. If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly…
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