CONNECT CODE F/FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781260685978
Author: PHILLIPS
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Textbook Question
Chapter 8, Problem 1PA
Recording
The Kraft Heinz Company was formed in 2015 with the merger of Kraft Foods and H. J. Heinz Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions):
Required:
- 1. Assume Kraft Heinz uses %2 of 1 percent of sales to estimate its
Bad Debt Expense for the year. Prepare theadjusting journal entry required for the year (rounded to the nearest million), assuming no Bad Debt Expense has been recorded yet. - 2. Assume instead Kraft Heinz uses the aging of accounts receivable method and estimates that $80 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense.
- 3. Repeat requirement 2, except this time assume the unadjusted balance in Kraft Heinz’s Allowance for Doubtful Accounts at January 3, 2016, was a debit balance of $20.
- 4. If one of Kraft Heinz’s customers declared bankruptcy, what journal entry would be used to write off its $15 balance?
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Students have asked these similar questions
Miller Foods Corporation was formed in 2015 with the merger of Tashamo Corporation and Grouch Mayor Companies. The company
reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions):
Debits
$ 1,140
Accounts Receivable
Allowance for Doubtful Accounts
Sales (assume all on credit)
Required:
1. Assume Miller Foods uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry
required for the year, assuming no Bad Debt Expense has been recorded yet.
2. Assume instead Miller Foods uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will
be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense.
3. Assume instead Miller Foods's uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will
be uncollectible. Prepare the adjusting journal entry required at December…
Provide Correct
After analyzing its accounts receivable at year-end, a company arrives at the following age categories along with the percentages estimated as uncollectible.
Age of Accounts
0-30 days past due
31-60 days past due
61-120 days past due
121-180 days past due
Over 180 days past due
[Select] ✔
Accounts Receivable Estimated Uncollectible %
Transaction
Report bad debt expense
$134,000
46,000
29,000
[Select]
13,000
9,000
$231,000
Assets
The year-end balance of the allowance for uncollectible accounts before any adjustment is $2,300. Use the information above to answer the following questions.
a. What amount of bad debt expense will the company report in its income statement for the current year?
2.0%
3.0%
b. Use the financial statement effects template to show the impact of reporting this year's bad debt expense. If there is no net change in an item, select 'no net change.
Balance Sheet
Liabilities
=
6.0%
12.0%
20.0%
[Select]
+
Equity
[Select]
c. What is the net accounts receivable balance…
Chapter 8 Solutions
CONNECT CODE F/FINANCIAL ACCOUNTING
Ch. 8 - What are the advantages and disadvantages of...Ch. 8 - Prob. 2QCh. 8 - Which basic accounting principles does the...Ch. 8 - Using the allowance method, is Bad Debt Expense...Ch. 8 - What is the effect of the write-off of...Ch. 8 - How does the use of calculated estimates differ...Ch. 8 - A local phone company had a customer who rang up...Ch. 8 - What is the primary difference between accounts...Ch. 8 - What are the three components of the interest...Ch. 8 - As of May 1, 2016, Krispy Kreme Doughnuts had...
Ch. 8 - Does an increase in the receivables turnover ratio...Ch. 8 - What two approaches can managers take to speed up...Ch. 8 - When customers experience economic difficulties,...Ch. 8 - (Supplement 8A) Describe how (and when) the direct...Ch. 8 - (Supplement 8A) Refer to question 7. What amounts...Ch. 8 - 1. When a company using the allowance method...Ch. 8 - 2. When using the allowance method, as Bad Debt...Ch. 8 - 3. For many years, Carefree Company has estimated...Ch. 8 - 4. Which of the following best describes the...Ch. 8 - 5. If the Allowance for Doubtful Accounts opened...Ch. 8 - 6. When an account receivable is recovered a....Ch. 8 - Prob. 7MCCh. 8 - 8. If the receivables turnover ratio decreased...Ch. 8 - Prob. 9MCCh. 8 - Prob. 10MCCh. 8 - Prob. 1MECh. 8 - Evaluating the Decision to Extend Credit Last...Ch. 8 - Reporting Accounts Receivable and Recording...Ch. 8 - Recording Recoveries Using the Allowance Method...Ch. 8 - Recording Write-Offs and Bad Debt Expense Using...Ch. 8 - Determining Financial Statement Effects of...Ch. 8 - Estimating Bad Debts Using the Percentage of...Ch. 8 - Estimating Bad Debts Using the Aging Method Assume...Ch. 8 - Recording Bad Debt Estimates Using the Two...Ch. 8 - Prob. 10MECh. 8 - Prob. 11MECh. 8 - Recording Note Receivable Transactions RecRoom...Ch. 8 - Prob. 13MECh. 8 - Determining the Effects of Credit Policy Changes...Ch. 8 - Prob. 15MECh. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Bad Debt Expense Estimates and...Ch. 8 - Determining Financial Statement Effects of Bad...Ch. 8 - Prob. 3ECh. 8 - Recording Write-Offs and Recoveries Prior to...Ch. 8 - Prob. 5ECh. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Recording and Reporting Allowance for Doubtful...Ch. 8 - Recording and Determining the Effects of Write-Off...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Using Financial Statement Disclosures to Infer...Ch. 8 - Using Financial Statement Disclosures to Infer Bad...Ch. 8 - Prob. 15ECh. 8 - Analyzing and Interpreting Receivables Turnover...Ch. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions Jung ...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions CS...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Prob. 2PBCh. 8 - Prob. 3PBCh. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording and Reporting Credit Sales and Bad Debts...Ch. 8 - Prob. 2COPCh. 8 - Recording Daily and Adjusting Entries Using FIFO...Ch. 8 - Prob. 1SDCCh. 8 - Prob. 2SDCCh. 8 - Ethical Decision Making: A Real-Life Example You...Ch. 8 - Critical Thinking: Analyzing the Impact of Credit...Ch. 8 - Using an Aging Schedule to Estimate Bad Debts and...Ch. 8 - Accounting for Receivables and Uncollectible...
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