Problem 5-4 (IAA) At the beginning of current year, Relentless Company reported the following balances: Accounts receivable Allowance for doubtful accounts 600,000 25,000 The following transactions took place in the current year. 1. Sales- cash and credit 3,070,000 2. Cash received from credit customers 2,455,000 3. Cash received from credit customers who took advantage of the 3/10, n/30 credit terms (included in No. 2) 1,455,000 4. Accounts receivable written off as worthless 20,000 5. Cash received from cash customers 470,000 6. Credit memo for sales return and allowances issued to credit customers 55,000 7. Cash refunds to cash customers 10,000 8. Recoveries of accounts written off, not included in above collections 5,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity provides for doubtful accounts equal to 2% of net credit sales. c. Determine the net realizable value of accounts receivable at year-end?

Problem 5-4 (IAA) At the beginning of current year, Relentless Company reported the following balances: Accounts receivable Allowance for doubtful accounts 600,000 25,000 The following transactions took place in the current year. 1. Sales- cash and credit 3,070,000 2. Cash received from credit customers 2,455,000 3. Cash received from credit customers who took advantage of the 3/10, n/30 credit terms (included in No. 2) 1,455,000 4. Accounts receivable written off as worthless 20,000 5. Cash received from cash customers 470,000 6. Credit memo for sales return and allowances issued to credit customers 55,000 7. Cash refunds to cash customers 10,000 8. Recoveries of accounts written off, not included in above collections 5,000 Required: a. Prepare journal entries to record the transactions. b. Prepare the adjustment for doubtful accounts if the entity provides for doubtful accounts equal to 2% of net credit sales. c. Determine the net realizable value of accounts receivable at year-end?

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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Problem 6 Tantrum Company provided the following information in relation to accounts receivable at year-end: Days Outstanding % Uncollectible Estimated Amount 1,200,000 0-60 1% 2% 61-120 900,000 Over 120 1,000,000 6% During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?
6 Mario Company's Accounts Receivable balance atDecember 31 was $300,000 and there was a credit balance of $1,400 in the Alowance for Doubtful Accounts, The year's sales were $1,800,000. Mario 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? A) $300,000 B) $271,600 C) $325,400 D) $277,400
F. The records of Stedman Corp. included the following accounts, all of which are normal balances: $1,200,000 900,000 180,000 200,000 3,000 5,000 Cash sales Credit sales Balance in accounts receivable, 12/31/20 Balance in accounts receivable, 12/31/21 Balance in allowance for doubtful accounts, 12/31/20 Accounts written off as uncollectible during 2021 Stedman estimates bad debts as 2% of receivables at year end to be uncollectible. Write any necessary adjusting entry.
The following account balances come from the records of Ourso Company: Beginning Balance $2,800 Ending Balance $3,600 350 Accounts receivable Allowance for doubtful accounts 280 During the accounting period, Ourso recorded $14,000 of sales revenue on account. The company also wrote off a $150 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. a Collections of accounts receivable b. Uncollectible accounts expense
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Subject: acounting
Brief Exercise 8-10 (Part Level Submission) During its first year of operations, Sandhill Co. had credit sales of $3,208,100, of which $434,300 remained uncollected at year-end. The credit manager estimates that $19,120 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
8. Use the following information for the next two questions: Pampi's Co. has the following information. Days Outstanding Receivable Balances % collectible 0-60 480,000 1% 61-120 360,000 2% Over 120 400,000 6% During the year, Pampi wrote off P14,000 receivables and recovered 8,000 that had been written-off in prior years. The allowance for doubtful accounts has a beginning balance of P4,000. How much is the net realizable value of accounts receivable at year-end? How much is the doubtful accounts expense?