Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 5, Problem 5.11BE
To determine
Allowance method for uncollectible accounts:
It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated, and recorded at the end of particular period. Under this method,
To record: The cash collection entry of books B on September 9.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Barnes Books allows for possible bad debts. On May 7, Barnes writes off a customer account of $11,000. On September 9, th
customer unexpectedly pays the $11,000 balance.
Record the cash collection on September 9. (If no entry is required for a particular transaction/event, select "No Journal E
Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
>
Record the cash collection on September 9.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
September
09
Record entry
Clear entry
View general journal
6. Austin's bank has a $45 overdraft fee. On Friday morning Austin had $345.78 in his checking
account. Friday night a payment to AT&T was automatically withdrawn from his account in the
amount of $210.15. Over the weekend Austin withdrew $100 cash and made purchases with his
debit card in the amounts of $65.34, $24.99, $6.75 and $42.87. What was Austin's balance on
Monday morning?
ASUS
Debbie's Dog Care cash account shows a $10,000 debit balance and its bank statement shows $12,500 on deposit at the close of business on June 30.
Outstanding checks as of June 30 total $3,500.
The June 30 bank statement lists a $50 bank service charge.
The bank received a $550 direct deposit into Debbie's Dog Care account. The $550 was payment from one of Debbie's customers, paying his account balance.
The June 30 cash receipts of $1,500 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement.
Required:
Prepare Debbie's Dog Care bank reconciliatin for June 30 using the above information.
Prepare the necessary journal entries for Debbie's Dog Care.
Chapter 5 Solutions
Financial Accounting
Ch. 5 - When recording a credit sale, what account do we...Ch. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Briefly explain the accounting treatment for sales...Ch. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - 7.What two purposes do firms achieve by estimating...Ch. 5 - Prob. 8RQCh. 5 - 9.What are the financial statement effects of...Ch. 5 - Prob. 10RQ
Ch. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Discuss the differences between the allowance...Ch. 5 - 17.Notes receivable differ from accounts...Ch. 5 - With respect to notes receivable, explain what...Ch. 5 - Prob. 19RQCh. 5 - Interest on a note receivable typically is due...Ch. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23RQCh. 5 - Prob. 24RQCh. 5 - Prob. 25RQCh. 5 - Prob. 5.1BECh. 5 - Calculate net sales (LO52) Kellys Jewelry has the...Ch. 5 - At the end of the first war of operations,...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.5BECh. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.7BECh. 5 - Prob. 5.8BECh. 5 - Prob. 5.9BECh. 5 - Record the write-off of uncollectible accounts...Ch. 5 - Prob. 5.11BECh. 5 - Prob. 5.12BECh. 5 - Sanders Inc. is a small brick manufacturer that...Ch. 5 - Prob. 5.14BECh. 5 - Prob. 5.15BECh. 5 - Prob. 5.16BECh. 5 - Prob. 5.17BECh. 5 - Refer to the information in BE517, but now assume...Ch. 5 - Match each of the following terms with its...Ch. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Record credit sale and cash collection with a...Ch. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - On April 25, Foreman Electric installs wiring in a...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Physicians Hospital has the following balances on...Ch. 5 - Record the adjustment for uncollectible accounts...Ch. 5 - Prob. 5.10ECh. 5 - Prob. 5.11ECh. 5 - Consider the following transactions associated...Ch. 5 - Prob. 5.13ECh. 5 - Prob. 5.14ECh. 5 - Prob. 5.15ECh. 5 - Prob. 5.16ECh. 5 - Record notes receivable an interest revenue (LO57)...Ch. 5 - Prob. 5.18ECh. 5 - Compare the percentage of receivables method and...Ch. 5 - Compare the percentage-of-receivables method and...Ch. 5 - Compare the accounting cycle using receivable...Ch. 5 - Prob. 5.1APCh. 5 - Prob. 5.2APCh. 5 - Record transactions related to accounts receivable...Ch. 5 - Record transactions related to uncollectible...Ch. 5 - Compare the direct write-off method to the...Ch. 5 - Prob. 5.6APCh. 5 - Overestimating future uncollectible accounts...Ch. 5 - Prob. 5.8APCh. 5 - Assume selected financial data for Walmart and...Ch. 5 - Calculate the amount of revenue to recognize...Ch. 5 - Prob. 5.2BPCh. 5 - Record transactions related to accounts receivable...Ch. 5 - Record transactions related to uncollectible...Ch. 5 - Compare the direct write-off method to the...Ch. 5 - Prob. 5.6BPCh. 5 - Underestimating future uncollectible accounts...Ch. 5 - Prob. 5.8BPCh. 5 - Assume selected financial data for Sun Health...Ch. 5 - Prob. 5.1APCPCh. 5 - American Eagle Outfitters, Inc. Financial...Ch. 5 - Prob. 5.3APFACh. 5 - Prob. 5.4APCACh. 5 - Prob. 5.5APECh. 5 - Prob. 5.6APIRCh. 5 - Written Communication You have been hired as a...Ch. 5 - Earnings Management Ernie Upshaw is the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Austin Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2011, its Cash account shows an $15,671 debit balance. Austin Clinic's June 30 bank statement shows $15,382 on deposit in the bank. Prepare a bank reconciliation for Austin Clinic using the following information:. (Do not use a minus sign if your selection is to "Deduct" an item. Omit the "$" sign in your response): a. Outstanding checks as of June 30 total $2,700. b. The June 30 bank statement included a $65 debit memorandum for bank services. c. Check No. 919, listed with the canceled checks, was correctly drawn for $489 in payment of a utility bill on June 15. Austin Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $498. d. The June 30 cash receipts of $2,933 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank…arrow_forwardall have cleared handled on the bank reconcilement? 22. A company sold $15,000 of inventory to a customer. The shipment arrived late and the customer complained. The company grants the customer a $450 allowance. Write the entry to record the company (the seller) post to record this transaction.arrow_forwardCarla Vista's cash register tape showed sales of $59,000 on June 16 for charges to customers' MasterCards. The bank charges a service fee of 3%. Prepare the entry to record MasterCard credit card sales. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Jun. 16 Debit Creditarrow_forward
- Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12, the company receives a $560 check from Chad Thomas in settlement of Thomas's $1,390 outstanding accounts receivable. Due to Thomas's failing health, he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this transaction. If an amount box does not require an entry, leave it blank. Dec. 12arrow_forwardOn November 9, Jane Jones writes a check for $5,000 payable to Ralph Rodgers in payment for goods to be received later in the month. Before the close of business on November 9, Jane notifies the bank by telephone to stop payment on the check. On December 19, Ralph gives the check to Bill Briggs for value and without notice. On December 20, Bill deposits the check in his account at Bank A. On December 21, Bank A sends the check to its correspondent, Bank B. On December 22, Bank B presents the check through the clearinghouse to Bank C. On December 23, Bank C presents the check to Bank P, the payor bank. On December 28, the payor bank makes payment of the check final. Is Jane Jones’s stop payment order effective against the payor bank? Explain.arrow_forwardDiscount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12, the company receives a $500 check from Chad Thomas in settlement of Thomas's $1,240 outstanding accounts receivable. Due to Thomas's failing health, he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this transaction. If an amount box does not require an entry, leave it blank. Dec. 12 Previous Next 品 1:01 PM T18 a 12/11/2020 2. hparrow_forward
- Carson's Bakery requires $500 cash to be on hand in the petty cash fund. During the month of October the following receipts were provided to the accountant in charge of petty cash; Gas $50, Supplies $100, Stamps $75. The petty cash fund now has a current balance of $270. How much cash needs to be withdrawn from the bank in order to replenish he petty cash fund? Record your answer as a numeric value without a $ sign. Type your answer..arrow_forwardPlease help mearrow_forwardAt the end of the day, the cash register tape lists $885.69 as total income from services. Cash on hand consists of $15.68 in coins, $459.77 in currency, $90.00 in traveler's checks, and $409.74 in customers' checks. The amount of the Change Fund is $100. Required: Record the entry to record the day's cash revenue. If an amount box does not require an entry, leave it blank. GENERAL JOURNAL PAGE DATE DESCRIPTION DOC. NO. POST. REF. DEBIT CREDIT Cash Cash Short and Over Income from Services To record revenue earned during the day involving a cash shortage of $10.50.arrow_forward
- 3. Prepare journal entries for items (a-(f) from the bank reconciliation. (If no entry is requlred for a transaction/event, select "No Journal Entry Requlred" In the first account fleld.) View transaction list Journal entry worksheet 3 4 5 6 > 1 2 The bank deducted $250 for an NSF check from a customer deposited on December 22. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journalarrow_forwardA cheque in the amount of $455 was returned by the bank marked "NSF". A bank service fee of $15 was charged for processing the returned cheque. Upon notification of the NSF, the company who initially received the customer’s cheque will most likely 1. reverse the customer’s payment on their books to re-establish the accounts receivable for $455 and debit the accounts receivable for the bank service fee of $15. 2. reverse the customer’s payment on their books to re-establish the accounts receivable for $455. 3. reverse the customer’s payment on their books to re-establish the accounts receivable for $455 and debit bank charges expense for the bank service fee of $15. 4. make no changes to the accounting records but advise the customer that the payment was declined and is still outstanding.arrow_forwardJul 2 Recommended to the owner, Jen Beck, that she put some of the cash into a Money Market account that will earn interest. Jen agrees. Create the general ledger account 1030 Money Market and transfer $7,000 into the account. Just tell me in quickbooks where do i record this transaction?bill (enter bills window)credit (enter bills window)bill pmt - check (pay bills window)check (write checks window)invoice (create invoices window)payment (receive payments window)sales receipt (enter sales receipts window)deposit (make deposit window)general journal (make general journal entries window)inventory adjust (adjust quantity/value on hand window)sales tax payment (pay sales tax window)paycheck (pay employees window)liability check (pay payroll liabilities window)transfer (transfer funds between accounts window)credit card charge (enter credit card charges window)credit memo (create credit memos/refunds window)discounts (receive payments window)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY