Requlred Information [The following information applies to the questions displayed below.] Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. $ 920,800 10% Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating incone 22,800 (credit) $ 242,000 Willie's compensation contract states that if the company generates operating income of at least $192.000, he will get a salary bonus early next year. Requlred: 1. Record the adjusting entry for uncollectible accounts using the accountant's estimate of 10% of accounts receivable. (If no entry is required for a particular transactionievent, select "No Journal Entry Required" In the first account fleld.) View transaction list Journal entry worksheet A <> Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit 1

Requlred Information [The following information applies to the questions displayed below.] Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. $ 920,800 10% Accounts receivable Estimated percentage uncollectible Allowance for uncollectible accounts Operating incone 22,800 (credit) $ 242,000 Willie's compensation contract states that if the company generates operating income of at least $192.000, he will get a salary bonus early next year. Requlred: 1. Record the adjusting entry for uncollectible accounts using the accountant's estimate of 10% of accounts receivable. (If no entry is required for a particular transactionievent, select "No Journal Entry Required" In the first account fleld.) View transaction list Journal entry worksheet A <> Record the adjusting entry for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit 1

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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Customer Refunds and Allowances Assume the following data for Lusk Inc. before its year-end adjustments: Sales fasthe year $3,600,000 Estimated percent of refunds for the year 0.8% Journalize the adjusting entry for customer refunds and allowances. If an amount box does not require an entry, leave it blank. 88 Sales v Customer Refunds Payable v Feedback Check My Work Sales are reduced by the estimated amount of customer refunds and allowances which are calculated based upon a percentage of sales. Pre Check My Work Subm Save and Exit Email Instructor
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At the end of the year, a company reports a balance in its Allowance for Uncollectible Accounts of $2,000 (credit) before any year-end adjustment. The company estimates future uncollectible accounts to be 2% of credit sales for the year. Credit sales for the year total $282,000. Record the adjustment for the allowance for uncollectible accounts using the percentage-of-credit-sales method on a balance sheet.
At the end of the first year of operations, mayberry advertising had accounts receivable of $21100. Management of the company estimates that 8% of the accounts will not be collected What adjutment would mayberry advertising record to established allowance for uncollectible accounts Do the journal entry worksheet
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Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 48,000 Accounts receivable Percent uncollectible Total $ 630,000 0 $ 408,000 Req A 1% Req B and C 1 to 30 $ 102,000 Complete this question by entering your answers in the tabs below. 2% 5% 61 to 90 $ 30,000 7% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. 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 $13,200 credit. Over 90 $ 42,000 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 $2,200 debit. 10% Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts…