College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 14A, Problem 1SEB
EXPENSE METHOD OF ACCOUNTING FOR PREPAID EXPENSES Ryan’s Fish House purchased supplies costing $3,000 for cash. This amount was debited to the supplies expense account. At the end of the year, December 31, 20--, an inventory showed that supplies costing $500 remained. Prepare the
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Prepare the journal entries
Prepare journal entries for each transaction
Current Attempt in Progress
The ledger of Cullumber Company at the end of the current year shows Accounts Receivable $68,000, Credit Sales $810,000, and
Sales Returns and Allowances $38,000. Prepare journal entries for each separate scenario below.
If Cullumber Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting
entry at December 31, assuming Cullumber Company determines that Matisse's $500 balance is uncollectible.
(a)
If Allowance for Doubtful Accounts has a credit balance of $900 in the trial balance, journalize the adjusting entry at
December 31, assuming bad debts are expected to be 8% of accounts receivable.
(b)
If Allowance for Doubtful Accounts has a debit balance of $490 in the trial balance, journalize the adjusting entry at
December 31, assuming bad debts are expected to be 7% of accounts receivable.
(c)
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles…
Chapter 14A Solutions
College Accounting, Chapters 1-27
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- Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for $1,500. Hannahs receivable has been outstanding for over 180 days, and Perry determines that the total amount is uncollectible and writes off all of Hannahs debt. Hannah later receives a windfall and pays the amount of her balance to Perry Corp. Required: Make the appropriate journal entries (if any) to record the receipt of $450 by Perry Corp.arrow_forwardBlue Barns purchased 888 gallons of paint at $19 per gallon from a supplier on June 3. Terms of the purchase are 2/15, n/45, invoice dated June 3. Blue Barns pays their account in full on June 20. On June 22, Blue Barns discovers 20 gallons are the wrong color and returns the gallons for a full cash refund. Record the journal entries to recognize these transactions for Blue Barns.arrow_forwardMarcellus Purse conduct cleaning business on the credit basis. He provides the collects the sccount receivable in 60 days. The Allowance October 2019 is $3,993. The following information is available Douchd D 1. The business uses aging of account receivable method to count the bad de 2. The accountant is required to update the balance of allowance of dosud des OURE at the end of each month 3. On 5 October 2019 a total of $1.997 ewed by Lucy Frone has been deemed w uncollectable and therefore written off 4. The total sales recorded during 1 October 2019 to 31 October 2019 is $812577 The balance in the Account receivable on 31 October 2019 is $198.300 5. 6. On 31 October 2019 the accountant estimates that 3% of the account receivable is estimated as doubtful. Q3 Required (a) Prepare the Accounting Entries for the transactions or events relating to bad debt for the month ended 31 October 2019, ignore GST ( (b) Prepare and balance the T-account for Allowance for Doubtful Debts accounts as…arrow_forward
- Collection of Amounts Previously Written Off Hannah purchased a laptop computer from Perry Corp. for $1,500. Hannah's receivable has been outstanding for over 180 days, and Perry determines that the total amount is uncollectible and writes off all of Hannah’s debt. Hannah later receives a windfall and pays the amount of her balance to Perry Corp. Make the appropriate journal entries (if any) to record the receipt of $450 by Perry Corp. If an amount box does not require an entry, leave it blank. Reverse portion write offarrow_forwardHow to adjust and write this on general journal? Store supplies debited to wtire supplies expense, $14,000. As of December 31, 2020 $2,250 are still unusedarrow_forwardNeed answer pleasearrow_forward
- Journalize the following transactions using the allowance method of accounting foruncollectible receivables:Sep 1. Received $600 from Jane and wrote off the remainder owed of $1350 as uncollectible.Nov15.Reinstated the account Jane that had been written off on Sep 1 and received $1350 cash in full payment.arrow_forwardBelow is the adjusted trial balance which was extracted from the books of Ready Hospital Supplies on June 30, the end of the company’s financial year. You are required to apply the accrual basis of accounting in the preparation of the company’s financial statements. Ready Hospital Supplies Adjusted Trial Balance as at June 30, 2020 Dr $ Cr $ Cash 127,000.00 Accounts Receivable 151,000.00 Allowance for Bad-Debts 19,500.00 Merchandise Inventory 186,000.00 Store Supplies 25,000.00 Prepaid Insurance 48,000.00 Prepaid Rent 14,000.00 Furniture & Fixtures 800,000.00 Accumulated Depreciation: Furniture & Fixtures 320,000.00 Computer Equipment 450,000.00 Accumulated Depreciation: Computer Equipment 45,000.00 Accounts Payable 133,500.00 Salaries Payable 14,000.00 Interest Payable 36,000.00…arrow_forwardJournalize the following transactions, using the allowance method of accounting for uncollectible receivables:Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of $1,350 as uncollectible.Dec. 20. Reinstated the account of Rachel Elpel and received $1,350 cash in full payment.arrow_forward
- Allowance method entries The following transactions were completed by Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,760 cash in full payment of Arlene's account. Apr. 3. Wrote off the $15,810 balance owed by Premier GS Co., which is bankrupt. July 16. Received 45% of the $28,400 balance owed by Hayden Co., a bankrupt business, and wrote off the remainder as uncollectible. Nov. 23. Reinstated the account of Harry Carr, which had been written off two years earlier as uncollectible. Recorded the receipt of $4,500 cash in full payment. Dec. Wrote off the following accounts as uncollectible (compound entry): Cavey Co., $11,895 ; Fogle Co., $3,535 ; Lake Furniture, $ 9,080 ; Melinda Shryer, $2,565. 31. Dec. Based on an analysis of the $1,400,700 of accounts receivable, it was estimated that $60,900 will be uncollectible.…arrow_forwardAce Company uses the Aging of receivables method to account for uncollectible accounts. The company had the following balances on January 01, 2019. Part A Accounts receivable.. .$2,800,000 Allowance for uncollectible accounts... . .$88,800 (credit) The company completed the following transactions during 2019. • April 20- Wrote off the balance of $1,000 from Shari Wickham's account as uncollectible. • November 27 Re-instated the account of Louis Benn and recorded the collection of $1,500 as payment in full for her account which had been written off earlier. • December 31st- i. Recorded the uncollectible account expense based on the aging schedule. The schedule showed that $124,500 of accounts receivable was estimated as uncollectible. ii. Made the closing entry for the uncollectible expense account. Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the…arrow_forwardPlease Introduction and show work and please I humble request to no plagiarism pleasearrow_forward
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