Below is the trial balance of Slowcombe Services on September 30, 2021.SLOWCOMBE SERVICESTrial BalanceSeptember 30, 2021DebitCreditCash$7,500Accounts receivable2,000Supplies1,500Equipment7,500Accounts payable$ 4,000Unearned revenue800W. Slowcombe, capital13,700$ 18,500$ 18,500The October transactions were as follows:Oct. 5Received $ 1,000 in cash from customers for accounts receivable due.10Billed customers for services performed in the amount of $ 5,000.15Paid employee salaries of $ 1,000.17Performed $ 500 of services for customers who paid in advance in August.20Paid $ 1,200 to creditors for accounts payable due.29William Slowcombe withdraws $ 200 cash for personal use.30Paid utilities of $ 400.31Paid $ 500 for maintenance expense. (a)Your answer is partially correct.Prepare a general ledger using Taccounts. Enter the opening balances in the ledger accounts as of October 1.CashOct. 1 Bal.5200Oct. 315200Accounts ReceivableOct. 1 Bal.6000Oct. 31SuppliesOct. 1 Bal.1500Oct. 31EquipmentOct. 1 Bal.7500Oct. 31Accounts PayableOct. 312800Oct. 1 Bal.Unearned RevenueOct. 31300Oct. 1 Bal.300w. Slowcombe, CapitalOct. 3113500Oct. 1 Bal.13500

T accounts are the general ledger accounts in the business which are used for the classification of…

Your answer is partially correct. Prepare a general ledger using Taccounts. Enter the opening balances in the ledger accounts as of Octobe Cash Oct. 1 Bal. 5200 Oct. 31 5200 Accounts Receivable Oct. 1 Bal. 6000 Oct. 31 Supplies Oct. 1 Bal. 1500 Oct. 31 Equipment Oct. 1 Bal. 7500 Oct. 31 Accounts Payable Oct. 31 2800 Oct. 1 Bal. Unearned Revenue Oct. 31 300 Oct. 1 Bal. 300 w. Slowcombe, Capital Oct. 31 13500 Oct. 1 Bal. 13500

Your answer is partially correct. Prepare a general ledger using Taccounts. Enter the opening balances in the ledger accounts as of Octobe Cash Oct. 1 Bal. 5200 Oct. 31 5200 Accounts Receivable Oct. 1 Bal. 6000 Oct. 31 Supplies Oct. 1 Bal. 1500 Oct. 31 Equipment Oct. 1 Bal. 7500 Oct. 31 Accounts Payable Oct. 31 2800 Oct. 1 Bal. Unearned Revenue Oct. 31 300 Oct. 1 Bal. 300 w. Slowcombe, Capital Oct. 31 13500 Oct. 1 Bal. 13500

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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On January 1, 2020, the records of ABC Company showed a debit balance of P650,000 in its Accounts Receivable account. The following summary transactions that occurred during 2020 were also shown under the said account: Debits:Charge sales, P6,300,000Shareholders’ subscriptions, P200,000Deposit on contract, P120,000Claims against common carrier for shipping damages, P100,000IOUs from employees, P10,000Cash advances to affiliates, P150,000Advances to a supplier, P30,000Credits:Collections from customers, P5,300,000Write-off, P35,000Merchandise returns, P45,000Allowances to customers for shipping damages, P25,000Collections on carrier claims, P40,000Collections on subscriptions, P50,000Required:a. Determine the correct amount of accounts receivable.b. Compute the amount to be presented as “trade and other receivables” under current assets.
The details of the accounts receivable of AA Corporation as December 31, 2022 shows the following: Beginning balance P3,450,000 Sales on account made to customers 2,800,000 Collection of accounts receivable during the year 4,200,000 Accounts written off as uncollectible 90,000 The following transactions were included in the recorded transactions during the year: 1. Invoice dated December 28, 2022 for P350,000 was shipped and received by the buyer on December 31, 2022, this invoice was recorded in the book at P35,000. 2. Invoice dated and recorded on November 30, 2022 was erroneously priced at P32 per unit. There were 11,000 units of goods delivered which were received on December 10, 2022. The agreed price should be at P22 per unit only. AA's policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and there is beginning balance of allowance for bad debts of P40,000. Statement 1: The amount of bad debt expense in 2022 is P158,250. Statement 2: The…
Suppose the amounts presented here are basic financial information (in millions) from the 2020 annual reports of Surf and Tide. Surf Tide Sales revenue $19,176.1 $10,381 Allowance for doubtful accounts, beginning 78.4 119 Allowance for doubtful accounts, ending 110.8 124 Accounts receivable balance (gross), beginning 2,873.7 1,743 Accounts receivable balance (gross), ending 2,994.7 1,553 Instructions a) Calculate the accounts receivable turnover and average collection period for both companies. My answer for (a) Surf Tide Net Accounts Receivable, beginning (Accounts receivable balance (gross), beginning-Allowance for doubtful accounts, beginning) (2,873.7-78.4) =2,795.3 (1,743-119) =1,624 Net Accounts Receivable, ending (Accounts receivable balance (gross), ending-Allowance for doubtful accounts, ending) (2994.7-110.8) =2,883.9 (1,553-124) =1,429 Average Net Accounts Receivable (Net Accounts Receivable, beginning+Net Accounts Receivable,…
The following Is a portion of the current assets section of the balance sheets of Avantl's, Inc., at December 31, 2020 and 2019: 12/31/20 12/31/19 Accounts receivable, less allowance for bad debts of $9,884 and $18,755, respectively $178,387 $223,883 Requlred: a. If $11,579 of accounts recelvable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint. Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) Bad debt expense b. The December 31, 2020, Allowance account balance Includes $3,017 for a past due account that is not likely to be collected. This account has not been written off. |(1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020? Yes No (2) If It had been written off, will there be any effect of the write-off on net Income and ROI for the year ended December 31, 2020? Yes No c. The level of Avantı's sales…
(MODIFIED) Spring Corporation has the following account balances on December 31, 2020: Accounts receivable Php 400,000 Allowance for uncollectible accounts8,400 Spring completed the following transactions in 2019: А. Net credit sales, Php 4,000,000. В. Collections on accounts, Php 3,870,000. С. Write-off of uncollectible accounts, Php 10,000. D. Recovery of accounts previously written-off, Php 2,000. Е. Uncollectible accounts expense, 2/3 of 1% of net credit sales. REQUIRED: A. Journalize the foregoing transactions. Compute the balance of accounts receivable and allowance for uncollectible accounts at December 31, 2020. What amount of Accounts receivable, net would Spring report on its December 31, 2020 balance sheet? Assume that Spring uses the aging of accounts instead of the percent of sales method in estimating uncollectible accounts. Analysis indicates that Php 30,800 of outstanding accounts on December 31, 2020 may prove to be uncollectible. Compute for the uncollectible accounts…
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The following data were taken from the records of Millet Corporation for the year ended December 31: Sales on account, P7,200,000; Accounts receivable written off as a result of permanentimpairment, P50,000; Notes receivable to settle accounts, P800,000; Purchases on account,P7,800,000; Payments to creditors, P6,400,000; Purchase discounts, P520,000; Sales returns,P30,000; Collections received to settle accounts, P4,900,000; Notes given to settle accounts, P500,000; Purchase returns, P140,000; Payments of notes, P200,000; Discounts taken bycustomers, P80,000; Collection on notes receivable, P360,000. What is the carrying value of the accounts receivable on December 31?
The following accounts and their balances appear in an unadjusted trial balance of CASHEW Company as of December 31, 2021: Cash and cash equivalents P400,000 Trade and other receivables 2,000,000 Subscription receivables 375,000 Inventory 500,000 Trade and other payables 670,000 Income tax payable 196,500 Additional Information: - Trade and othe receivables include long term advances to company officers amounting to P430,000 - The subscriptions receivable has the following call dates: June 30, 2022 - P200,000; December 31, 2022- P100,000, and June 30, 2023- P75,000 - Inventory of P500,000 was determined by physical count. On December 31, 2021, goods costing P125,000 are transit from a supplier. Terms of purchase of the…
The following accounts and their balances appear in an unadjusted trial balance of Achiever Company as of December 31, 2020: Cash and Cash Equivalents - 400,000; Trade and other receivables - 2,000,000; Subscription receivable - 375,000; Inventory -500,000; Trade and other payables - 670,000; Income tax payable - 196,500. Additional information: a) Trade and other receivables include long term advances to company officers amounting to P430,000. b) The subscription receivable has the following call dates: June 30, 2021, P200,000; December 31, 2021, P100,000; and June 30, 2022, P75,000. c) Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is payable in cash and P100,000 is distributable in Achiever's own shares. What is the total current assets and total current liabilities at December 31, 2020?
At December 31, 2019, SoundMaster Company reported this informationon its balance sheet.Accounts receivable $960,000Less: Allowance for doubtful accounts 78,000During 2019, the company had the following transactions related to receivables.1. Sales on account $3,600,0002. Sales returns and allowances 150,0003. Collections of accounts receivable 3,100,0004. Write-offs of accounts receivable deemed uncollectible 92,0005. Recovery of bad debts previously written off as uncollectible 28,000 Instructionsa) Prepare the journal entries to record each of these five transactions. Assumethat no cash discounts were taken on the collections of accounts receivable.(Omit cost of goods sold entries.)b) Enter the January 1, 2019, balances in Accounts Receivable andAllowance for Doubtful Accounts, post the entries to the two accounts(use T-accounts), and determine the balances.c) Prepare the journal entry to record bad debt expense for 2019, assumingthat aging the accounts receivable indicates that…
At January 1, 2025, XYZ Company had an allowance for doubtfulaccounts with a $39,300 credit balance. XYZ Company reportedthe following information for 2025:Sales revenue .................................. $392,800Cash collections from customers ................ $307,500Write-offs of uncollectible accounts ........... ?Recoveries of previously written-off accounts .. $ 14,600Bad debt expense ............................... $ 31,090In order to estimate the bad debt expense, XYZ Company preparedthe following aging schedule at December 31, 2025:Accounts Receivable % Uncollectiblenot past due $181,000 3%1-30 days past due $ 36,000 7%31-60 days past due $ 42,000 11%61-90 days past due $ 21,000 24%over 90 days past due $ 13,000 46%total accounts receivable $293,000Calculate XYZ Company's accounts receivable balance atJanuary 1, 2025. Please don't provide answer in image format thank you
23.K-Pop Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?