Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions): Debits Credits Accounts Receivable $1,140 Allowance for Doubtful Accounts $ 18,500 28 Sales (assume all on credit) Required: 1. Assume Rogala uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Rogala uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense. 3. Assume instead that Rogala's uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense assuming Rogala's unadjusted balance in Allowance for Doubtful Accounts at January 3, 2016 was a debit balance of $22. 4. If one of Rogala's customers declared bankruptcy, what journal entry would be used to write off its $20 balance?
Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions):
Debits Credits
Allowance for Doubtful Accounts $28
Sales (assume all on credit) 18,500
- Required:Assume Rogala uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting
journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. - Assume instead Rogala uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense.
- Assume instead that Rogala's uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense assuming Rogala's unadjusted balance in Allowance for Doubtful Accounts at January 3, 2016 was a debit balance of $22.
- If one of Rogala's customers declared bankruptcy, what journal entry would be used to write off its $20 balance?
Required 1
Assume Rogala uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.)
Record the entry for bad debt expenses under the percentage of credit sales method. (Note: Enter debits before credits.)
Date General Journal Debit Credit
January 03, 2016
Required 2
Assume instead Rogala uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.)
Record the entry for bad debt expenses under the aging of accounts receivable method. (Note: Enter debits before credits.)
Date General Journal Debit Credit
January 03, 2016
Required 3
Assume instead that Rogala's uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense assuming Rogala's unadjusted balance in Allowance for Doubtful Accounts at January 3, 2016 was a debit balance of $22. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Record the
Date General Journal Debit Credit
January 03, 2016
Required 4
If one of Rogala's customers declared bankruptcy, what journal entry would be used to write off its $20 balance? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Record the write-off of a certain customer account totaling $20 which is not collectible due to bankruptcy declared by the customer. (Note: Enter debits before credits.)
Transaction General Journal Debit Credit
1
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