[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 50,000 $ 125,000 In addition, its unadjusted trial balance includes the following items. $ 112,500 debit $ 900 debit Accounts receivable Allowance for doubtful accounts Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts ap its December 31 balance sheet. Answer is complete but not entirely correct. urrent assets ccounts receivable ess Allowance for doubtful accounts $ 112,500 5,000 $ 107,500

[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 50,000 $ 125,000 In addition, its unadjusted trial balance includes the following items. $ 112,500 debit $ 900 debit Accounts receivable Allowance for doubtful accounts Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts ap its December 31 balance sheet. Answer is complete but not entirely correct. urrent assets ccounts receivable ess Allowance for doubtful accounts $ 112,500 5,000 $ 107,500

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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On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST.During June, the following transactions occurred:1. Revenue earned on credit, $1,195,000.2. Sales returns, $24,100.3. Accounts receivable collected, $1,400,000.4. Accounts written off as uncollectable, $15,851.Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June. Ignore GST. On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June, paid its account in full. Prepare journal entries to record the collection.
Following is a list of credit customers along with their amounts owed and the days past due at December 31. Following that list are five classifications of accounts receivable and estimated bad debts percent for each class.A)Create an aging of accounts receivable schedule similar to Exhibit 9.8 and calculate the estimated balance for the Allowance for Doubtful Accounts.B)Assuming an unadjusted credit balance of $100, record the required adjustment to the Allowance for Doubtful Accounts
Moving to another question will save this response. Question 14 Sama company has the following unadjusted account balances at December 31, 2021; Total Sales of $720,000, Accounts Receivable of $205,000 and the allowance was estimated as 3.5% of the total Account Receivable. The Allowance for Doubtful Accounts had a credit balance of $2,400, before the estimate was made. Required: Prepare the adjusting journal entry to record bad debts expense for 2021. Answer in the following format [Note: This is just an example and is not related to the question] Jan 1 Dr. Cash...... 120 Cr. Owner capital.............. 120 10 (Mac) I %0 O
Element Fire Door Services uses the allowance method to record bad debts expense. At the end of June, it is estimated that 1% of Element Fire Door Services accounts receivable will be uncollectable. Accounts receivable at 30 June are $100,000 and the Allowance for doubtful debts has a credit balance of $1,000. What is the journal entry needed to adjust the allowance for doubtful debts at the end of June?
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On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…
9. On December 31, (before adjusting and closing the account), the allowance for doubtful accounts showed a debit balance of $950. An aging of the accounts receivable indicated that the amount expected to be uncollectible was $4,900. The adjusting journal entry to record bad debt expense would include: ABCDE A. B. C. D. E. a credit to Bad Debt Expense for $5,850. a credit to Allowance for Doubtful Accounts for $5,850 a debit to Bad Debt Expense for $4,900 a credit to Accounts Receivable for $3,950 a debit to Bad Debt Expense for $3,950
! Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 View transaction list