XYZ Co.'s post-closing trial balance on December 31 2018 shows the following account balances: Cash Accounts Receivable Allowance for bad debts Notes Receivable (trade) Inventory Prepaid supplies Prepaid rent Prepaid insurance Land Building Accumulated Depreciation- Building Equipment Accumulated Depreciation- equipment Accounts Payable Notes Payable-short term loan Notes Payable- long term loan (P50,000 due within 1 year) P 20,000 122,000 (30,000) 8,000 200,000 15,000 25,000 10,000 1,000,000 2,000,000 (1,600,000) 800,000 (250,000) P 100,000 200,000 Interest Payable Salaries Payable Utilities Payable Unearned Income Owner's Capital Required: Prepare the statement of financial position 1,450,000 65,000 105,000 8,000 35,000 357,000

XYZ Co.'s post-closing trial balance on December 31 2018 shows the following account balances: Cash Accounts Receivable Allowance for bad debts Notes Receivable (trade) Inventory Prepaid supplies Prepaid rent Prepaid insurance Land Building Accumulated Depreciation- Building Equipment Accumulated Depreciation- equipment Accounts Payable Notes Payable-short term loan Notes Payable- long term loan (P50,000 due within 1 year) P 20,000 122,000 (30,000) 8,000 200,000 15,000 25,000 10,000 1,000,000 2,000,000 (1,600,000) 800,000 (250,000) P 100,000 200,000 Interest Payable Salaries Payable Utilities Payable Unearned Income Owner's Capital Required: Prepare the statement of financial position 1,450,000 65,000 105,000 8,000 35,000 357,000

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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Augustino Company estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2018, the company’s credit sales and collections were $125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2018, if $180 in accounts receivable were written off during 2018 and if the allowance account had a balance of $750 on December 31, 2018? A. $25,820 B. $25,180 C. $31,180 D. $31,000
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2023 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $36,000 $ 462,000 During 2024, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Percentage of Year- End Receivables in Group Percent Uncollectible 70% 20 5% 15 5 20 5 40 Over 120 days Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…
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