Assume the following data for Lusk Inc. before its year-end adjustments:Unadjusted BalancesDebitCredit$3,600,000Sales$2,100,000Cost of Merchandise SoldEstimated Returns Inventory1,800Customer Refunds Payable900Estimated cost of merchandise that$15,000will be returned in the next yearEstimated percent of refunds forcurrent year sales0.8%Journalize the adjusting entries for the following:a. Estimated customer allowancesb. Estimated customer returns

a.Calculate the amount of sales:

Answered: Assume the following data for Lusk Inc.…

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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A trial balance before adjustment included the following: Accounts receivable Allowance for doubtful accounts Sales revenue Sales returns and allowances Debit $140,000 Credit $ 730 610,000 8,000 Estimates of uncollectible accounts are expected to be 5% of gross accounts receivable Use the information above to determine the following: 1) Net sales (on the income statement for the period)? 2) Accounts receivable (on the balance sheet at the end of the period)? 3) Bad debt expense? 4) Allowance for doubtful accounts had a credit balance of $5,500 at the beginning of the period. What amount of receivables was written off during the period? 5) If an additional $500 of receivables were written off during the period, what would bad debt expense have been?
Using the following data for the current year, determine the accounts receivable turnover. Net sales on account during the year $ 457,065 Cost of merchandise sold during the year 461,280 Accounts receivable, beginning of year 75,290 Accounts receivable, end of year 26,280 Inventory, beginning of year 185,000 Inventory, end of year 169,570 a.7 b.8 c.10 d.9
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $660,000, Allowance for Doubtful Accounts has a credit balance of $6,000, and sales for the year total $2,.970,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $25.200. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
Use the attachment to answer the following Accounts receivable days outstanding at the end of Year 2 is closest to: a) 30.6 days b) 26.0 days c) 27.0 days d) 6.1 days
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $950,000, Allowance for Doubtful Accounts has a credit balance of $8,500, and sales for the year total $4,280,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $29,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
Prepare an aging schedule to determine the total estimated uncollectibles at March 31,2018
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $635,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,860,000. Bad debt expense is estimated at 1.25% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts. 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense $635,000 ✓ 3. Determine the net realizable value of accounts receivable.
At the end of the year, Dahl Enterprises estimates the uncollectible accounts expense to be 0.8 percent of net sales of $7,575,000. The current credit balance of Allowance for Uncollectible Accounts is $12,900. Prepare the entry to record the uncollectible accounts expense. What is the balance of Allowance for Uncollectible Accounts after this adjustment? You must show your computations.
A year-end review of Accounts Receivable and estimated uncollectible percentages revealed the following: $1300. Days Outstanding 1-30 days 2% 31-60 days 5% 61-90 days 10% Over 90 days 52% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1100. Under the aging-of- receivables method, the Uncollectible-Account Expense at year-end is: $9390. $10,490. Accounts Receivable $8290. Est. Percent Uncollectible $65,000 $45,000 $22,000 $7000
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $670,000; Allowance for Doubtful Accounts has a debit balance of $6,000; and sales for the year total $3,020,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $29,400. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. %24 %24 %24 %24 %24
A trial balance before adjustments included the following: Debit Credit Sales 425,000 Sales returns and allowance 14,000 Accounts receivable 43,000 Allowance for doubtful accounts 760 a. If the estimate of uncollectibles is made by taking 2% of net sales, the amount of the adjustment is $ Answer 1 Question 5 b. If the estimate of uncollectibles is made by taking 10% of gross account receivables, the amount of the adjustment is $ Answer 2 Question 5
Number 1

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