Corporate Financial Accounting
15th Edition
ISBN: 9781337398169
Author: Carl Warren, Jeff Jones
Publisher: Cengage Learning
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Chapter 5, Problem 5.32EX
Closing entries
On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a fumiture wholesaler, are as follows:
Accumulated Depr.—Building | $365,000 | Inventory | $ 115,000 |
Administrative Expenses | 440,000 | Notes Payable | 100,000 |
Building | 810,000 | Retained Earnings | 455,000 |
Cash | 78,000 | Sales | 1,437,000 |
Common Stock | 75,000 | Sales Tax Payable | 4,500 |
Cost of Goods Sold | 775,000 | Selling Expenses | 160,000 |
Dividends | 15,000 | Store Supplies | 16,000 |
Interest Expense | 6,000 | Store Supplies Expense | 21,500 |
Prepare the July 31 closing entries for Serbian Interiors Company.
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On December 31 of last year, the balance sheet of Union Company had accounts receivable of $74,5000 and a credit balance in Allowance for Uncollectible Accounts of $5,075. During the current year, Union's financial records included the following selected activities:
Sales on accounts $298,750
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1) Prepare T accounts for Accounts receivable and Allowance for uncollectible accounts. Enter the beginning balances and show the effects on these accounts of the items listed above. Determine the ending balance of each account.
The following information is available for Monty's Best Corporation about the age of its receivables at December 31, its year end:
Number of days outstanding
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Estimated percentage uncollectible
(a)
0-30
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3%
Total Estimated Uncollectible Accounts $
tA
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$250,000
5%
61-90
$210,000
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$90,000
Using the above aging schedule, determine the total estimated uncollectible accounts.
15%
The details of the accounts receivable of AA Corporation as December 31, 2022
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4,200,000
Accounts written off as uncollectible
90,000
The following transactions were included in the recorded transactions during the
year:
1. Invoice dated December 28, 2022 for P350,000 was shipped and received by
the buyer on December 31, 2022, this invoice was recorded in the book at
P35,000.
2. Invoice dated and recorded on November 30, 2022 was erroneously priced at
P32 per unit. There were 11,000 units of goods delivered which were received
on December 10, 2022. The agreed price should be at P22 per unit only.
AA's policy is to provide 5% of the outstanding balance of accounts receivable as
uncollectible and there is beginning balance of allowance for bad debts of P40,000.
Statement 1: The amount of bad debt expense in 2022 is P158,250.
Statement 2: The…
Chapter 5 Solutions
Corporate Financial Accounting
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