Question 42Based on the following adjusted trial balance of Lyndon Company on December 31, 200C, the end of the accountingperiodP 67,07570,000176,500CashNote RecervableAccounts ReceivableAllowance for Bad DebtsMerchandise Inventory, Jan. 1Furmiture & Fixtures5,40060,90034,100Accumulated Depreciation - Furm. & Fixt.Office EquipmentAccumulated Depreciation - Office EapmsNote PayableAccounts PayableLeonard CaptalLeonard Drawing3,10015,5001,50020,00094,750265,0009,500Sales572,875Sales ReturnsSales Discount11,0006,400390,7505,415PurchasesFreight inParchase ReturnsPurchase discountSalaries ExpenseRent ExpenseInsurance expenseOffice supplies expense3,6306,88599 55024,0005,2502,200Rental Income5,000Additional informanion: Merchandise Inventory, December 31, P 76,000 How much is the ending Owner's Equity?P 341,125P314,425P 344,425P 341,425Od

The owner's equity comprises of investment, retained earnings, net income, losses or withdrawal…

Question 42 Based on the following adjusted trial balance of Lyndon Company on December 31, 200C, the end of the accounting period P 67,075 70,000 176,500 Cash Note Recervable Accounts Receivable Allowance for Bad Debes Merchandise Iaventory, Jan. 1 Furmiture & Fixtures Accumulated Depreciation - Fum. & Fixt. Office Equipmet Accumulated Depreciation - Office Eapmt Note Payable 5,400 60900 34,100 3,100 15,500 1,500 20,000 94,750 265,000 Accounts Payable Leonard Captal Leonard Drawing Sales Sales Returns Sales Discout Purchases Freight in Purchase Retums Purchase discount 9,500 572,875 11,000 6,400 390,750 5,415 3,630 6,885 Salaries Expense Reat Expense Inwrnce expense Office supplies expene Rental Income 99 S50 24,000 5,250 2.200 5,000 Addimional informanion: Merchandise Iaventory, December 31, P 76,000

Question 42 Based on the following adjusted trial balance of Lyndon Company on December 31, 200C, the end of the accounting period P 67,075 70,000 176,500 Cash Note Recervable Accounts Receivable Allowance for Bad Debes Merchandise Iaventory, Jan. 1 Furmiture & Fixtures Accumulated Depreciation - Fum. & Fixt. Office Equipmet Accumulated Depreciation - Office Eapmt Note Payable 5,400 60900 34,100 3,100 15,500 1,500 20,000 94,750 265,000 Accounts Payable Leonard Captal Leonard Drawing Sales Sales Returns Sales Discout Purchases Freight in Purchase Retums Purchase discount 9,500 572,875 11,000 6,400 390,750 5,415 3,630 6,885 Salaries Expense Reat Expense Inwrnce expense Office supplies expene Rental Income 99 S50 24,000 5,250 2.200 5,000 Addimional informanion: Merchandise Iaventory, December 31, P 76,000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.3MBA

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View Policies Current Attempt in Progress Voight Company's account balances at December 31 for Accounts Receivable and Allowance for Doubtful Accounts were $1,400,000 and $70,000 (Cr.), respectively. An aging of accounts receivable indicated that $128,000 are expected to become uncollectible. The amount of the adjusting entry for bad debts at December 31 is O $198,000. O $128,000. O $58,000. O $70,000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer 回可

Question Part A Albert Trading Limited used the statement of financial position approach to estimate the impairment loss of receivable. An aging of account receivable at 31 December 2019 revealed that S68,000 of the S835,000 outstanding accounts receivable will prove uncollectible. The Allowance for Impairment has a debit balance of $6,200 prior to adjustment. Required: (Explanation of the Journal Entry is not required) Prepare an adjusting entry on 31 December 2019 to recognize the impairment loss of receivable. Part B On 12 January 2020, Peter Lee, a major customer, declared bankruptey, and Albert Trading, determined that a receivable from Peter Lee in the amount of $3,400 was worthless. Required: (Explanation of the Journal Entry is not required) Prepare the joumal entry required by Albert Trading in this situation.
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Requlred Informatlon [The following information applies to the questions displayed below.] The Company prepared the following aging of receivables analysis at December 31. Days Past Due Total $678,00e 1 to 30 $110, eee 3% 31 to 60 61 to 90 Over 90 Accounts receivable Percent uncollectible $38, e00 9% $50, 0ee 12% $416,000 $56,000 7% 4% a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5.600 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2.100 debit. Complete this question by entering your answers in the tabs below. Reg A Reg B and C Complete the below table to calculate the estimated balance of Allowance for…
Question 6On 30 June, the end of its financial year, Aarav Ltd completed an age analysis of itsaccounts receivable and determined that an allowance for doubtful debts of $12 320was needed in order to report accounts receivable at their estimated collectableamount in the Balance Sheet.Required(a) Prepare the general journal entry to record bad debts expense assuming that theAllowance for Doubtful Debts account currently has a $1940 credit balance(narration not required).(b) Prepare an entry to write off an account receivable from V. Vijay for $781(narration not required). (c) From the following information, determine the amount of cash received fromcustomers during 2019-20:Accounts receivable (30-Jun-2019) $81 000Accounts receivable (30-Jun-2020) $76 000Sales (Credit) $350 000 (d) From the following information, determine the amount of purchases for the year:Beginning inventory $ 60 000Ending inventory 90 000Cost of sales 130 000 (e) If wages expense for the year is $480 000, wages…
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Hide or show questions Progress:51/69 items Calculator Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares an analysis of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the Bad Debt Expense for the year? a.debit Allowance for Doubtful Accounts, $29,600; credit Bad Debt Expense, $29,600 b.debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200 c.debit Bad Debt Expense, $29,600; credit Allowance for Doubtful Accounts, $29,600 d.debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200
HOW MUCH IS TEH NET INCOME a. 53, 925b. 63, 975c. 48, 925d. 58, 925
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Adjusting Journal Entry: using accounts listed 12/31 - Estimated Allowance for Doubtful Accounts is computed to be 1% of current year sales. (Hint: the amount of the adjustment should be computed starting from the unadjusted balance in Allowance for Doubtful Accounts)
The trial balance of Fuzzy Security Services Ltd. as of January 1, Year 9, had the following normal balances:Cash$93,380Petty Cash100Accounts receivable21,390Allowance for doubtful accounts2,485Supplies180Prepaid rent3,000Merchandise inventory (23 @ $280)6,440Equipment9,000Van27,000Accumulated depreciation14,900Salaries payable1,500Common stock50,000Retained earnings91,605During Year 9, Fuzzy Security Services experienced the following transactions:1. Paid the salaries payable from Year 8.2. Paid $9,000 on May 2, Year 9, for one year’s office rent in advance.3. Purchased $425 of supplies on account.4. Purchased 145 alarm systems at a cost of $290 each. Paid cash for the purchase.5. After numerous attempts to collect from customers, wrote off $2,060 of uncollectible accounts receivable.6. Sold 130 alarm systems for $580 each plus sales tax of 5 percent. All sales were on account. (Be sure to compute cost of goods sold using the FIFO cost flow method.)7. Billed $107,000 of monitoring…
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