On December 31, 2017, when its accounts receivable were $276,000 and its account Allowance for Doubtful Accounts had anunadjusted debit balance of $1,800, Marx Corp. estimated that $15,500 of its accounts receivable would become uncollectible, and itrecorded the bad debts adjusting entry. On May 11, 2018, Marx determined that Fei Ya Cheng's account was uncollectible and wroteoff $1,700. On November 12, 2018, Cheng paid the amount previously written off.(a)Prepare the required journal entries to record each of the above transactions. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)2017DateAccount Titles and ExplanationDebitCredit

The journal entries are prepared to record the transactions on a aregular basis. The adjustment…

Answered: On December 31, 2017, when its accounts…

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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For its fiscal year ended December 31, 2023, Fruitful Products had credit sales of $750,000. At year end, the unadjusted trial balance shows a debit balance of $1,800 in the Allowance for Doubtful Accounts (AFDA), and $140,000 in Accounts Receivable. The credit manager prepared an aging schedule of accounts receivable and estimates that $5,155 will prove to be uncollectible. On March 4, 2024, the credit manager authorizes a write off of the $2,862 balance owed by Sand Beach. Instructions Credit sales: $750,000 Unadjusted AFDA at year end: $1,800 Accounts Receivable at year end: $140,000 Estimated uncollectible amount from aging schedule: $5,155 (a)Prepare the adjusting entry to record the estimated bad debt expenses for 2023. (b) Show the statement of financial position presentation of accounts receivable at December 31, 2023. (c) On March 4, 2024, before the write off, assume the balance of Accounts Receivable account is $175,000 and the balance of Allowance for Doubtful Accounts is a…
At the end of 2022, Sheridan Co. has accounts receivable of $807,800 and an allowance for doubtful accounts of $58,300. On January 24, 2023, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,000. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
At the end of 2016, Whispering Winds Corp. has accounts receivable of $749,900 and an allowance for doubtful accounts of $23,580. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,564. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value 2$
On December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,301, Windsor, Inc. estimates that 8% of its accounts receivable balance of $97,300 will become uncollectible and records 1. the necessary adjustment to Allowance for Doubtful Accounts. 2. On May 11, 2017, Windsor, Inc. determined that B. Jared's account was uncollectible and wrote off $1,120. 3. On June 12, 2017, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017. (Credit account titles are automatically Indented when amount Is entered. Do not Indent manually.) No. Date Account Titles and Explanation Debit 1. 3:01
On January 1, 2018, Keiasia Company’s Accounts Receivable and the Allowance for Uncollectible Accounts showed balances of $24,000 and $1,200 respectively. During the year, the company reported $64,000 of credit sales, and cash collections of receivables amounted to $58,000. During the year, the company wrote of $1,400 of delinquent accounts. The company estimates that it will be unable to collect 5% of the year-end accounts receivable balance. The amount of bad debts expense recognized in the 2018 income statement will be: A. $1,230 B. $1,630 C. $230 D. $500 Answer is B, how do you get to 1,630
At the end of 2021, Shamrock Co. has accounts receivable of $768,300 and an allowance for doubtful accounts of $26,300. On January 24, 2022, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,480. (a) Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Allowance for Doubtful Accounts 4480 Accounts Receivable 4480 (b) What is the cash realizable value of the accounts receivable before the write-off and after the write-off? Before Write-Off After Write-Off Cash realizable value $ $
Crane Company had a 1/1/20 balance in the Allowance for Doubtful Accounts of $33500. During 2020, it wrote off $22000 of accounts and collected $6620 on accounts previously written off. The balance in Accounts Receivable was $630000 at 1/1 and $730000 at 12/31. At 12/31/20, Crane estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2020? $18380. $25000. $3000. $36500.
At the end of 2016, Skysong, Inc. has accounts receivable of $768,300 and an allowance for doubtful accounts of $26,300. 1. On January 24, 2017, it is learned that the company's receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,480. 2. On March 4, 2017, Skysong, Inc. receives payment of $4,480 in full from Madonna Inc. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. (To record recovery of accounts receivable.) (To record collection of accounts receivable.)
Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examined its accounts and determined that at January 1, 2018, it had balances in accounts receivable and allowance for doubtful accounts of $478,000 and $7,900 (credit), respectively. During 2018, Ingrid extended credit for $3,075,000 of sales, collected $2,715,000 of accounts receivable, and had customer defaults of $4,280. Ingrid performed an aging analysis on its receivables at year-end and determined that $6,800 of its receivables will be uncollectible. Required: 1. Calculate Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment.$ 2. Calculate Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment.$ Prepare the necessary adjusting entry for 2018. Account and Explanation Debit Credit Bad Debt Expense Allowance for Doubtful Accounts Record…
One company has a credit balance of $1530 in its allowance for doubtful accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, One company estimates that $1545 of its receivables are uncollectible. As a result it will debit Bad Debts Expense for what amount?
At the end of the current year, using the aging of receivable method, management estimated that $24,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $465. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
On January 1, 2017, the balance in Great Lakes Co.'s Allowance for Bad Debts account was $15,600. During the year, a total of $10,500 of delinquent accounts receivable were written off as bad debts. The balance in the Allowance for Bad Debts account at December 31, 2017, was $21,900. What was the total amount of bad debts expense recognized during the year? As a result of a comprehensive analysis, it is determined that the December 31, 2017, balance of Allowance for Bad Debts should be $18,900. Show, in general journal format the adjustment required.

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