The following information is available for Quality Book Sales' sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 $ 124,760 Allowance for doubtful accounts, January 1, Year 2 3,050 Sales on account, Year 2 808,820 Collection on accounts receivable, Year 2 840,222 After several collection attempts, Quality Book Sales's wrote off $2,770 of accounts that could not be collected. Quality Book Sales estimates that 0.75 percent of sales on account will be uncollectible. Required: Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. Note: Round your final answer to nearest whole dollar amount. (2) The net realizable value of receivables at the end of Year 2. No

The following information is available for Quality Book Sales' sales on account and accounts receivable: Accounts receivable balance, January 1, Year 2 $ 124,760 Allowance for doubtful accounts, January 1, Year 2 3,050 Sales on account, Year 2 808,820 Collection on accounts receivable, Year 2 840,222 After several collection attempts, Quality Book Sales's wrote off $2,770 of accounts that could not be collected. Quality Book Sales estimates that 0.75 percent of sales on account will be uncollectible. Required: Compute the following amounts: (1) Using the allowance method, the amount of uncollectible accounts expense for Year 2. Note: Round your final answer to nearest whole dollar amount. (2) The net realizable value of receivables at the end of Year 2. 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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Can you help me with the final answers I am getting incorrect? Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) $143,000 Allowance for doubtful accounts (beginning balance) 11,340 Net credit sales 930,000 Collections 912,000 Write-offs of accounts receivable 6,400 Collections of accounts previously written off 2,200 Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. Your answer is correct. Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record sales on account) (To record collection of accounts…
Before adjusting for uncollectible accounts, Minderman Company has accounts receivable of $90,000 and a debit balance of $900 in the Allowance for Doubtful Accounts. The company estimates that 2 percent of one-half of its accounts receivable and 5 percent of the other half of accounts receivable will prove to be uncollectible. Determine the bad debt expense for the current period. A.$2,250 B.$3,150 C.$4,050 D.$2,150
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 $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 View transaction list X X Date December 31 X Percent Uncollectible (#.##%) X Record entry Required information [The following information applies to the questions displayed below.] Note: Enter debits before credits. On…
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On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $70,400 and $2,800, respectively. During the year Kincaid reported $187,000 of credit sales. Kincaid wrote off $1,700 of receivables as uncollectible in Year 2. Cash collections of receivables amounted to $222,300. Kincaid estimates that it will be unable to collect one percent (1%) of credit sales. The amount of uncollectible accounts expense recognized in the Year 2 income statement will be:
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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 $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 336,000 67,200 33,600 13,440 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.15% 1.90 6.40 View transaction list View journal entry worksheet 32.25 67.00 2. Prepare the adjusting entry to record bad debts expense at December 31. Note: Round percentage answers to nearest whole percent. Do not round intermediate calculations.
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