[The following information applies to the questions displayed below]The following adjusted trial balance at December 31 of Wilson Trucking Company.Account TitleDebitCreditCashAccounts receivable$ 9,80019,3004,800Office suppliesTrucks190,000Accumulated depreciation-Trucks$ 37,800Land103,000Accounts payable17,4005,800Interest payableLong-term notes payable67,000Common stock39,000Retained earnings149,000Dividends21,800Trucking revenue148,000Depreciation expense-Trucks25,300Salaries expense66,400Office supplies expense9,800Interest expense13,800$ 464,000$ 464,000TotalsPrepare the closing entries for the year ended December 31. The Retained Earnings account balance was $149.000 at Decemberthe prior year.

A closing entry is a journal entry that is made at the end of a period of accounting and entails…

The following adjusted trial balance at December 31 of Wilson Trucking Company. Account Title Debit Credit Cash Accounts receivable $ 9,800 19,300 4,800 office supplies Trucks 190,000 Accumulated depreciation-Trucks $ 37,800 Land 103,000 Accounts payable 17,400 5,800 Interest payable Long-term notes payable Common stock 67,000 39,000 149,000 Retained earnings h Dividends 21,800 148,000 Trucking revenue Depreciation expense-Trucks 25,300 Salaries expense 66,400 Office supplies expense 9,800 13,800 Interest expense $ 464,000 $ 464,000 Totals Prepare the closing entries for the year ended December 31. The Retained Earnings account balance was $149.000 at Decembe the prior year.

The following adjusted trial balance at December 31 of Wilson Trucking Company. Account Title Debit Credit Cash Accounts receivable $ 9,800 19,300 4,800 office supplies Trucks 190,000 Accumulated depreciation-Trucks $ 37,800 Land 103,000 Accounts payable 17,400 5,800 Interest payable Long-term notes payable Common stock 67,000 39,000 149,000 Retained earnings h Dividends 21,800 148,000 Trucking revenue Depreciation expense-Trucks 25,300 Salaries expense 66,400 Office supplies expense 9,800 13,800 Interest expense $ 464,000 $ 464,000 Totals Prepare the closing entries for the year ended December 31. The Retained Earnings account balance was $149.000 at Decembe the prior year.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $18,330 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Numberof Days Past Due) Receivables Balanceon December 31 Estimated Percent ofUncollectible Accounts 0-30 days $293,000 1 % 31-60 days 110,000 8 61-90 days 35,000 20 91-120 days 13,000 55 More than 120 days 18,000 80 Total receivables $469,000
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,150. Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $2,360 Greg Gagne 1,470 Amber Kisko 5,620 Shannon Poole 3,260 Niki Spence 900 Dec. 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel Aug. 14 Cash…
Assume the aging of accounts receivable method was used by the company and that $7050 of the accounts receivable as of Dec 31 were estimated to be uncollectible. You are now required to: a) Determine the amount to be charged to uncollectible expense( show your workings for the computation of this figure).
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: A. Journalize the transactions under the direct write-off method. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: C. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000
Entries for bad debt expense under the direct write-off and allowance methods Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: A. Journalize the write-offs under the direct write-off method. B. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. C. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Fernández Company uses the allowance method of accounting for uncollectible accounts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31 of the current year. Number of Days Outstanding 0-31 days 31-60 days Over 60 days Amount $500,000 200,000 100,000 The following additional information is available for the current year: Net credit sales for the year Loss allowance: Balance, January 1 Balance before adjustment, December 31 Probability of Collection 0.98 0.90 0.80 A. $752,000 B. $48,000 C. $50,000 D. $748,000 $4,000,000 45,000 (cr.) 2,000 (cr.) B If Fernández bases its estimate of uncollectible accounts on the aging of accounts receivable, Expected Credit Loss for the current year ending December 31 is
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…
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $6,720. May 15. Received $3,360 as partial payment on the $8,940 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $6,720 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $4,500 Duane DeRosa 3,360 Teresa Galloway 2,020 Ernie Klatt 2,820 Marty Richey 1,010 31. If necessary, record the year-end adjusting entry for the uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.…
Ace Company uses the Aging of receivables method to account for uncollectible accounts. Thecompany had the following balances on January 01, 2019.Part AAccounts receivable...........................................$2,800,000Allowance for uncollectible accounts...................$88,800 (credit)The company completed the following transactions during 2019. April 20-- Wrote off the balance of $1,000 from Shari Wickham’s account asuncollectible. November 27- Re-instated the account of Louis Benn and recorded the collection of$1,500 as payment in full for her account which had been written off earlier. December 31sti. Recorded the uncollectible account expense based on the aging schedule. Theschedule showed that $124,500 of accounts receivable was estimated asuncollectible.ii. Made the closing entry for the uncollectible expense account.Requirements:1. Prepare journal entries for each transaction (No narrations required)2. Prepare the Allowance for Uncollectible and the Accounts…
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $2,360. May 15. Received $1,180 as partial payment on the $3,140 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $2,360 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $1,580 Duane DeRosa 1,180 Teresa Galloway 710 Ernie Klatt 990 Marty Richey 350 Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es).…