Requlred Informatlon[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'saccounting manager provides Willie with the following information, before any adjustment.Accounts receivable920,00010%Estimated percentage uncollectibleAllowance for uncollectible accounts22,800 (credit)242,000Operating inconeWillie'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.3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus?Multiple ChoiceYesNo

Formula; Allowance for dountful debts=Accounts receivables×Percentage of uncollectibles

[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. Accounts recelvte uncollectible Estinated Allowance for uncollectible accounts Operating incone $ 920,000 18% 22,80e (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. 3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Multiple Choice Yes No

[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. Accounts recelvte uncollectible Estinated Allowance for uncollectible accounts Operating incone $ 920,000 18% 22,80e (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. 3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Multiple Choice Yes No

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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Chocolate Corner Company had the following transactions during the current year:Apr. 8. Received a $7,050, 75-day, 8% note from Lance Armstrong in payment of account.May 24.Wrote off customer Joe Nutella's account against the Allowance for Uncollectible Accounts, $150June 22. Received payment of Lance Armstrong's note in full.Sept. 10.Gave a $5,600, 90-day, 9% note to Herbert Anson in payment of account.Sept.18. Received payment of Joe Nutella's account, written off May 24.Dec 9. Paid principal and interest due on note to Herbert Anson.Please Note: a 360-day year is standard for many such interest computations - for this course interest is to the nearest month rather than precisely to the day. Round interest to the nearest dollar (no cents).If needed record the above transactions in general journal form.The balance of Accounts Receivable at April 10th is: A.150 B. 7200 C. 575 This is the whole question. Nothing misses. Note:- Do not provide handwritten solution. Maintain accuracy…
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of the adjustment dated December 31, Year 1, on the financial statements of the Loudoun Corporation? A. B. C. D. Assets (3,375) (3,375) 3,375 ΝΑ Multiple Choice Option D Option C Option A Option B Balance Sheet = Liabilities + 3,375 ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ (3,375) 3,375 ΝΑ Revenue ΝΑ ΝΑ ΝΑ ΝΑ Income Statement Expense ΝΑ 3,375 (3,375) ΝΑ = Net Income ΝΑ (3,375) 3,375 ΝΑ Statement of Cash Flows ΝΑ ΝΑ 3,375 0A ΝΑ
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The ledger of Larkspur Company at the end of the current year shows Accounts Receivable $92,000, Credit Sales $850,000, and Sales Returns and Allowances $37,000. (a) (b) (c) If Larkspur uses the direct write-off method to account for uncollectible accounts, journalize the entry if on July 7 Larkspur determines that Matisse company's $900 balance is uncollectible. Assume Larkspur uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful Accounts has a credit balance of $1,500 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (b) Assume Larkspur uses the allowance method to account for uncollectible accounts. If Allowance for Doubtful…
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As Perry Materials Supply was preparing for the year-end close, their balances were as follows: Accounts Receivable - $146000 (dr) Allowance for uncollectible accounts - $6200 (dr) Uncollected Account Expense - $0 Perry Materials uses the aging method and has completed the following analysis of the accounts receivable: Customer 1-30 Days 31-60 Days 61-90 Days Over 90 Days Total Balance Johnson $4,600 $3,200 $7,800 Hot Pots, Inc. 800 1,000 1,800 Potter 40,000 550 40,550 Harrison 3,600 900 4,500 Marx 2,000 50 2,050 Younger 65,000 65,000 Merry Maids 5,900 5,900 Acher 12,000 6,400 18,400 Totals $127,500 $13,750 $3,700 $1,050 $146,000 Uncollectible percentage 2% 10% 20% 40% Estimated uncollectible amount $2,550 $1,375 $740 $420 $5,085 Required: How much will the…
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