INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 6, Problem 9E
Estimating
During 2019, sales on credit amounted to $575,000, $557,400 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2019, Shell on estimastes its bad debts to be 4% of the outstanding gross
Required:
- 1. Prepare the
journal entry necessary to record Shelton’s estimate of bad debt expense for 2019. - 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019,
balance sheet . - 3. Compute Shelton's receivables turnover. (Round to one decimal place.)
- 4. It Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
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The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2019:
Accounts Receivable
$67,000
Allowance for Doubtful Accounts
1,300
(credit)
During 2019, sales on credit amounted to $582,000, $552,800 was collected on outstanding receivables and $2,600 of receivables were written off as uncollectible. On December 31, 2019, Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance.
What would be the bad debt expense and the formula to find it?
Johnson Ltd. reported the following information on financial statements for the year ended December 31, 2019: Accounts receivable $3,001,000 Allowance for doubtful accounts 94,930 Bad debts expense 153,130 Assume all 2019 balance are normal balances. During 2020, the company had the following transactions related to receivables: 1. Sales were $26,421,000, of which $21,105,000 were on account. 2. Collections of accounts receivable were $19,762,000. 3. Writeoffs of accounts receivable were $102,800. 4. Recoveries of accounts previously written off as uncollectible were $21,100. (Note that this amount is not included in the collections referred to in item b above.
On December 31, 2019, Mills Manufacturing Ltd. had a $176,000 balance in its Accounts Receivable and a $10,000 balance in its Allowance for Doubtful Accounts. During 2020, the company made total sales of $955,000, of which $230,000 were cash sales. By the end of the year, Mills had received payments of $654,000 from its…
Hogenson Company estimates bad debt expense at 0.60% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $481,000 and $1,480 respectively on December 31, 2018. During 2019, Hogenson Company's credit sales and collections were $325,000 and $316,000, respectively, and $1,870 in accounts receivable were written off.
Determine the company’s net realizable value of accounts receivable on December 31, 2019.
A. $488,440.B. $484,700.C. $486,570.
D. $469,020.
Chapter 6 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
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