The following transactions, adjusting entries and closing entries relate to bad debts. All of this was done in the year ended December 31, 200A. a. January 26, 200A: Write off receivables from PT Eka Sakti amounting to Rp 575 because this company has been declared bankrupt b. April 10, 200A: Received receivables from Firm Agus amounting to Rp 870 which had previously been written off. c. July 17, 200OA: Received from CV Modern, 25% of the amount owed to him is Rp 800. The rest is written off. d. October 4, 200A: Write off receivables from: Firma Semeru Rp 3,000; Firma Pelita Rp. 760 and; PT Mekar Rp 500. e. December 31, 200A: Accounts receivable balance as of this date is Rp 120,750. The management of the company adopted a policy that the allowance for doubtful accounts should reflect 3% of the average balance of accounts receivable. The specific account balance as of January 1, 200A is as follows. Account name D (K) Account receivable Rp 92.250 Allowance for bad (3.150) debts Expense for bad debts Requested: 1. Prepare the journal entries required to record the above transactions, including adjusting entries and closing entries. 2. How much bad debt expense was recorded in year 200A? 3. What was the balance in the allowance for doubtful accounts as of December 31, 200A? 4. What is the expected amount to be received from the accounts receivable on December 31, 200A.
The following transactions, adjusting entries and closing entries relate to bad debts. All of this was done in the year ended December 31, 200A. a. January 26, 200A: Write off receivables from PT Eka Sakti amounting to Rp 575 because this company has been declared bankrupt b. April 10, 200A: Received receivables from Firm Agus amounting to Rp 870 which had previously been written off. c. July 17, 200OA: Received from CV Modern, 25% of the amount owed to him is Rp 800. The rest is written off. d. October 4, 200A: Write off receivables from: Firma Semeru Rp 3,000; Firma Pelita Rp. 760 and; PT Mekar Rp 500. e. December 31, 200A: Accounts receivable balance as of this date is Rp 120,750. The management of the company adopted a policy that the allowance for doubtful accounts should reflect 3% of the average balance of accounts receivable. The specific account balance as of January 1, 200A is as follows. Account name D (K) Account receivable Rp 92.250 Allowance for bad (3.150) debts Expense for bad debts Requested: 1. Prepare the journal entries required to record the above transactions, including adjusting entries and closing entries. 2. How much bad debt expense was recorded in year 200A? 3. What was the balance in the allowance for doubtful accounts as of December 31, 200A? 4. What is the expected amount to be received from the accounts receivable on December 31, 200A.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:The following transactions, adjusting entries and closing entries
relate to bad debts. All of this was done in the year ended
December 31, 200A.
a. January 26, 200A: Write off receivables from PT Eka Sakti
amounting to Rp 575 because this company has been
declared bankrupt
b. April 10, 200A: Received receivables from Firm Agus
amounting to Rp 870 which had previously been written off.
c. July 17, 200A: Received from CV Modern, 25% of the
amount owed to him is Rp 800. The rest is written off.
d. October 4, 200A: Write off receivables from: Firma Semeru
Rp 3,000; Firma Pelita Rp. 760 and; PT Mekar Rp 500.
e. December 31, 200A: Accounts receivable balance as of this
date is Rp 120,750. The management of the company
adopted a policy that the allowance for doubtful accounts
should reflect 3% of the average balance of accounts
receivable.
The specific account balance as of January 1, 200A is as
follows.
Account name
D (K)
Account receivable
Rp
92.250
Allowance for bad
(3.150)
debts
Expense for bad
debts
Requested:
1. Prepare the journal entries required to record the above
transactions, including adjusting entries and closing
entries.
2. How much bad debt expense was recorded in year 200A?
3. What was the balance in the allowance for doubtful
accounts as of December 31, 200A?
4. What is the expected amount to be received from the
accounts receivable on December 31, 200A.
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