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7.
Debbie Company reported collections from customers of P6,000,000 for the year ended December 31, 2020. Additional information follows:
12/31/2019
12/31/2020
P1,000,000
P3,000,000
Allowance for doubtful accounts
( 100,000)
(150,000)
Debbie wrote off uncollectible accounts totaling P500,000 during 2020. Under accrual basis, Debbie would report 2020 sales of
Group of answer choices
P4,500,000
P8,000,000
P8,550,000
P8,500,000
Step by step
Solved in 3 steps
- The following are the receivables balances of Hendrix Company as of January 1, 2021 (the beginning of the fiscal year). $ 85,000 331,750 Notes receivable Accounts receivable Allowance for doubtful accounts Transactions during 2021 include the following: 1) Sales to customers of $2,017,800 were made during 2021. Customers have 60 days to pay for the product. 2) Accounts receivable of $1,942,000 were collected. 3) $7,000 was received in payment of an account which was written off the books as uncollectible during 2021. 4) Customer accounts of $30,200 were written off during 2021. 16,700 (Credit balance) 5) At year-end (December 31, 2021), an aging of the accounts receivable balance showed the following. Use the below information to record bad debt expense for 2021. Age Under 30 days 30-90 days 91-180 days 181-360 days Over 360 days Amount $169,250 100,000 55,900 38,200 14,000 Estimated % Uncollectible 0.8% 1.6 5.0 15.0 40.0 SHA Instructions a) Prepare the necessary journal entries for…Blunt Company makes credit sales of $21,000 during the month of February 2019. During 2019, collections are received on February sales of $20,400, accounts represent-ing $600 of these sales are written off as uncollectible, and a $100 account previously written off is collected. Required: 1. Prepare the journal entries necessary to record the preceding information if (a) bad debts are estimated as 3% of credit sales at the time of sale and (b) the bad debts are recorded as they actually occur.Tucker Ltd uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $45,000 with terms 4/15, n/45. On June 12, 2020, It received full payment for the June 1 sale. Prepare the required journal entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
- Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account balance for Accounts Receivable (prior to any adjustments) is $ 9,500,000 The year ending 12/31/20 account balance for Allowance for Doubtful Accounts (prior to any adjustme nts) is $ 350,000 The C.F.O. (Chief Finandal Officer) has informe d the accounting departme nt that the year ending 12/31/20 All owance for Doubtful Accounts balance should be 2.5% of annual sales. Required: 1Prepare the necessary year-end adjusting journalentry necessary to reflect the balance expected by the C.F.O. 2 Calculate the Net Accounts Receivable balance (after adjustment).Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 251,000 Accounts Receivable, December 31, 2021 46,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (Credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)Bluebird, Inc. had net sales (all on account) in 2020 of$600,000. At December 31,2020 , before adjusting entries, the balances in selected accounts were: accounts receivable$75,000debit and allowance for doubtful accounts$1,500debit. Bluebird estimates that3%of its net sales will prove to be uncollectible. What is the net realizable value of the receivables reported on the financial statements at December 31,2020 ?
- Bricker Corp. estimates the allowance for uncollectible accounts at 3% of the ending balance of gross accounts receivable. During 2024, Bricker's credit sales and collections were $106,000 and $147,000, respectively. What was the balance of gross accounts receivable on January 1, 2024, if $90 in accounts receivable were written off during 2024 and if the allowance account had a balance of $630 on December 31, 2024?At December 31, 2021, Skysong, Inc. reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts During 2022, the company had the following transactions related to receivables. 1. 2. 3. 4. 5. (a) (b) (c) (d) Sales on account Sales returns and allowances $620,000 42,000 Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible Recovery of accounts previously written off as uncollectible Accounts receivable turnover Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles information provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.) Average collection period $2,810,000 63,000 2,510,000 44,000 15,000 times daysplease help me
- Tyla's bakery estimates the allowance for uncollectible accounts at 1% of the ending balance of accounts receivable. During 2024, Tyla's credit sales and collections were $117,000 and $141,000, respectively. What was the balance of accounts receivable on January 1, 2024, if $240 in accounts receivable were written off during 2024 and if the allowance account had a balance of $750 on December 31, 2024? A.) $41,000 B.) $480 C.) $99,240 D.) None of these answer choices are correct.Mckinney & Co. estimates its uncollectible accounts as a percentage of credit sales. Mckinney made credit sales of' $1,500,000 in 2019. Mckinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2021, Chez Fred's credit sales and collections were $ 125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2021, if $180 in accounts receivable were written off during 2021 and if the allowance account had a balance of $750 on December 31, 2021? A) $5,820. B) $31,000. C) $31,180. D) None of these answer choices are correct.
