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Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account. Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).

Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account. Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account.
Transcribed Image Text:Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account.
Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).
Transcribed Image Text:Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).
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