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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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 $37,000 During 2024, credit sales were $1,785,000, cash collections from customers $1,865,000, and $42,000 in accounts receivable were written off. In addition, $3,700 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 Over 120 days Percentage of Year- End Receivables in Group 60% 10 20 10 $ 467,000 Percent Uncollectible 38 5 25 45 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…
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…
The Accounts Receivable balance for Wedge Company at December 31, 2023, was $27,000. During 2024, Wedge earned revenue of $461,000 on account and collected $324,000 on account. Wedge wrote off $5,800 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 2% of accounts receivable. Read the reguirements. Requirement 1. Assume Wedge had an unadjusted $2,100 credit balance in Allowance for Bad Debts at December 31, 2024. Journalize Wedge's December 31, 2024, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Requirement 2. Assume Wedge had an unadjusted $1,800 debit balance in Allowance for Bad Debts at December 31, 2024. Journalize Wedge's December 31, 2024, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first,…
On Dec. 31, 2021, Boss Company had a credit balance of $50,000 in its records pertaining to allowance for uncollectible accounts. Analysis of its accounts receivable on the same date revealed the following: Age Amount ％ collectible 0-30 days $5,000,000 95 31-60 days 600,000 85 61-90 days 450,000 70 Over 90 days 100,000 50 Total $6,150,000 The company has written off $20, 000 of accounts receivable during 2021. How much is the allowance for uncollectible accounts to be reported on Dec. 31, 2021?
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1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. 2. Show how Solar Energy Manufacturing will report its net accounts receivable on its December 31, 2018, balance sheet.
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What is the answer in D?
Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. 0-30 dayspast due 31-90 dayspast due Over 90 dayspast due Accounts receivable amount $52,000 $31,000 $17,000 Percent uncollectible 8% 15% 30% Total per category ? ? ? Total uncollectible ? To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. 0-60 dayspast due 61-120 dayspast due Over 120 dayspast due Accounts receivable Amount $82,000 $15,000 $8,000 Percent uncollectible 8% 15% 30% Total per category ? ? ? Total uncollectible ? Complete the following. A. Complete each table by filling in the blanks. 0-30 dayspast due 31-90 dayspast due Over 90 dayspast due Accounts receivable amount $52,000…