Answer the following questions. Example of Answer: 4000 No comma, space, decimal point, or $ sign. Show negative amount or loss with a minus. Example: -4000 No comma, space, decimal point, or $ sign. The following the balance of accounts for Moon Company on Dec. 31, 2022. Supplies Accounts Receivable Cash Allowance for Bad Debts Equipment Land Merchandise Inventory Building Accumulated Dep-Office Equip Accumulated Dep.-Building Income Tax Payable Premium on Bonds Payable Accounts Payable Bonds Payable (5-year bonds) Treasury Stock Paid in Capital in Excess of par-Pref Stock Retained Earnings, Jan 1st. 24 95 70 5 1,294 60 210 1,480 54 120 14 Preferred Stock (8%, par $10) Paid in Capital in Excess of par-Com Stock Dividends Common Stock (par $2) Sales Discount Interest Revenue Sales Sales Return Income Tax Expense Depreciation Expense 12 135 90 10 20 2,093 Shipping Expense Supplies Expense Cost of Goods Sold Salaries Expense Interest Expense Rent Expense 200 40 60 270 15 15 700 45 40 24 12 18 150 110 9

Answer the following questions. Example of Answer: 4000 No comma, space, decimal point, or $ sign. Show negative amount or loss with a minus. Example: -4000 No comma, space, decimal point, or $ sign. The following the balance of accounts for Moon Company on Dec. 31, 2022. Supplies Accounts Receivable Cash Allowance for Bad Debts Equipment Land Merchandise Inventory Building Accumulated Dep-Office Equip Accumulated Dep.-Building Income Tax Payable Premium on Bonds Payable Accounts Payable Bonds Payable (5-year bonds) Treasury Stock Paid in Capital in Excess of par-Pref Stock Retained Earnings, Jan 1st. 24 95 70 5 1,294 60 210 1,480 54 120 14 Preferred Stock (8%, par $10) Paid in Capital in Excess of par-Com Stock Dividends Common Stock (par $2) Sales Discount Interest Revenue Sales Sales Return Income Tax Expense Depreciation Expense 12 135 90 10 20 2,093 Shipping Expense Supplies Expense Cost of Goods Sold Salaries Expense Interest Expense Rent Expense 200 40 60 270 15 15 700 45 40 24 12 18 150 110 9

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

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Warriors Company prepared an aging of its accounts receivable at December 31, 2023 and determined that the estimated uncollectible on that date was P85,200. During 2023, some customers' accounts were written off. Additional information is available as follows:Allowance for Bad Debts, December 31, 2022 P 63,000Bad debts expense reported in profit or loss 18,000Accounts Receivable, December 31, 2023 607,500Uncollectible accounts recovery during 2023 12,000 Question:21. How much were the accounts written off during 2023? A. P6,000 B. P7,800 C. P18,000 D. P22,200
Please answer the following The following unadjusted balances of Echo Company are presented at September 30, 2023: Dr. Cr. Accounts receivable $100 000 Sales returns and allowances 40 000 Allowance for doubtful accounts $ 2 500 Credit Sales 750 000 Required: (a) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable. Dr. $ Cr. $ (b) Prepare the journal entry for estimated bad debts assuming that doubtful accounts are estimated to be 1% of net sales Dr. $ Cr. $
36. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
Saved Help Save E6-14 (Algo) Recording and Reporting a Bad Debt Estimate Using Aging Analysis LO6-2 Casilda Company uses the aging approach to estimate bad debt expense. The ending balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, $51,600; (2) up to 180 days past due, $15,300; and (3) more than 180 days past due, $4,200. Experience has shown that for each age group, the average loss rate on the amount of the receivables at year-end due to uncollectibility is (1) 3 percent, (2) 12 percent, and (3) 32 percent, respectively. At December 31, the end of the current year, the Allowance for Doubtful Accounts balance is $300 (credit) before the end-of-period adjusting entry is made. Required: 1. Prepare the appropriate bad debt expense adjusting entry for the current year. 2. Show how the various accounts related to accounts receivable should be shown on the December 31, current year, balance sheet. Complete this question by entering…
1) Sustainable Supplies prepares the following aging of receivables analysis: Accounts receivable Percent uncollectible $840. Total Days Past Due Current 1 to 30 $ $ $ 57,600 40,000 9,000 1% 3% 31 to 61 to Over 90 60 90 $ 3,600 5% $ 2,000 8% $ 3,000 Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $500 credit. 11% A) Debit Bad Debts Expense $840; credit Allowance for Doubtful Accounts B) Debit Allowance for Doubtful Accounts $840; credit Bad Debts Expense $840. C) Debit Bad Debts Expense $1,840; credit Allowance for Doubtful Accounts $1,840. D) Debit Allowance for Doubtful Accounts $1,840; credit Bad Debts Expense $1,840. E) Debit Bad Debts Expense $1,340; credit Allowance for Doubtful Accounts $1,340.
Requlred Informatlon [The following information applies to the questions displayed below.] The Company prepared the following aging of receivables analysis at December 31. Days Past Due Total $678,00e 1 to 30 $110, eee 3% 31 to 60 61 to 90 Over 90 Accounts receivable Percent uncollectible $38, e00 9% $50, 0ee 12% $416,000 $56,000 7% 4% a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5.600 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2.100 debit. Complete this question by entering your answers in the tabs below. Reg A Reg B and C Complete the below table to calculate the estimated balance of Allowance for…
Omega Company prepared an aging of accounts receivable on December 31, 2018 and determined that the net realizable value of the accounts receivable was P2,500,000. Alow ance for uncolectible accounts on January 1 Accounts written off as uncollectible Accounts receivable on December 31 Uncollectible accounts recovery 280,000 230,000 2,700,000 50,000 What is the uncollectible accounts expense for the current year?
Here is information related to Mingenback Company for 2022. Total credit sales $2,500,000Accounts receivable at December 31 875,000Uncollectibles written off 33,000 What is the weakness of the direct write-off method of recording bad debt expense?
The following information concerns Complex, Inc.: Accounts receivable, 12/31/X7 $56,000 Credit sales during X7 $189,000 Allowance for doubtful accounts, 12/31/X7 $1,500 credit Bad debt expense is determined using the percentage of sales method. The company believes that 4% of sales will never be collected. What would be the balance in allowance for doubtful accounts after the adjusting entry? Select one: O a. $9,060 O b. $7,560 O c. $1,500 O d. $6,060 Oe. $2,240
Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts: Required: 1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018. 2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of loses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method. 3. CONCEPTUAL CONNECTION Do you believe this estimate of bad debt expense is reasonable? 4. CONCEPTUAL CONNECTION How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were What other action would management consider?
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500