Delta Company uses the allowance method of recording credit losses. In November 2016, Delta wrote off the $1,800 account of Epsilon Company. In January 2017, Epsilon paid the $1,800. The entry or entries to record the payment is/are: Cash Recoveries of Accounts Written Off Accounts Receivable--Epsilon Co. Cash Allowance for Doubtful Accounts Accounts Receivable--Epsilon Co. 1,800 1,800 1,800 1,800 1,800 1,800 Allowance for Doubtful Accounts 1,800 Accounts Receivable--Epsilon 1,800 Co. Accounts Receivable--Epsilon Co. 1,800 Bad Debts Expense 1,800

Delta Company uses the allowance method of recording credit losses. In November 2016, Delta wrote off the $1,800 account of Epsilon Company. In January 2017, Epsilon paid the $1,800. The entry or entries to record the payment is/are: Cash Recoveries of Accounts Written Off Accounts Receivable--Epsilon Co. Cash Allowance for Doubtful Accounts Accounts Receivable--Epsilon Co. 1,800 1,800 1,800 1,800 1,800 1,800 Allowance for Doubtful Accounts 1,800 Accounts Receivable--Epsilon 1,800 Co. Accounts Receivable--Epsilon Co. 1,800 Bad Debts Expense 1,800

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterB: Bad Debts

Section: Chapter Questions

Problem 2P: Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which...

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Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which uses the allowance method, estimates bad debts at percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec. 12Record services performed on account for E. E. Morton, 245. 31Record the adjusting entry for Bad Debts Expense. 31Record the closing entry for Bad Debts Expense. 2013 Feb. 18Write off the account of E. E. Morton as uncollectible, 245. Check Figure Adjusting entry amount, 1,366.03
Allowance Method for Accounting for Bad Debts At the beginning of 2016, Miyazaki Companys Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazakis sales in 2016 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during the year. Required Prepare summary journal entries related to the sales, collections, and write-offs of accounts receivable during 2016. Prepare journal entries to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to be uncollectible are 6% of the year-end accounts receivable. What is the net realizable value of accounts receivable on December 31, 2016, under each assumption in part (2)? What effect does the recognition of bad debts expense have on the net realizable value? What effect does the write-off of accounts have on the net realizable value?
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Rogan Companys total sales on account for the year amounted to 327,000. The company, which uses the allowance method, estimated bad debts at 1 percent of its credit sales. Required Journalize the following selected entries: 2017 Dec.31 Record the adjusting entry. 2018 Mar. 2Write off the account of A. M. Billson as uncollectible, 584. June 6Write off the account of W. H. Gilders as uncollectible, 492. Check Figure Adjusting entry amount, 3,270
The Accounts Receivable balance and Allowance for Bad Debts for Signature Lamp Company at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Signature Lamp Company completed the following transactions:a. Sales revenue on account, $273,400 (ignore Cost of Goods Sold).b. Collections on account, $223,000.c. Write-offs of uncollectibles, $5,900. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account. Journalize Signature Lamp’s adjustment to record bad debts expense assuming Hilltop estimates bad debts as 10% of accounts receivable. Post the adjustment to the appropriate T-accounts.
Applying the allowance method to account for uncollectibles The Accounts Receivable balance and Allowance for Bad Debts for Signature Lamp Company at December 31, 2017, was $10,800 and 52,000 (credit balance), respectively. During 2018, Signature Lamp Company completed the following transactions: Sales revenue on account, $273.400 (ignore Cost of Goods Sold). Collections on account, $223,000. Write-offs of uncollectibles, $5,900. Bad debts expense of $5,200 was recorded. Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account and show how accounts receivable would be reported on the balance sheet at December 31, 2018
Credit department of the Starlight Inc. estimates uncollectible accounts while analyzing various receivables. By the end of year 2017, credit manager collects following information relating to receivables and uncollectible accounts.Gross accounts receivable at the end of year as presented in balance sheet of company $520000. On the basis of past experience, company estimates that 2.5 percent of gross accounts receivable are uncollectible. During 2017, an amount of $1500 receivable from specific customer is expected to be written off as uncollectible. However, of these accounts written off, total receivables of $500 were subsequently collected. Required: a. Prepare all necessary journal entries and calculate amount of accounts receivable in the balance sheet of Starlight Inc. before and after write-off of uncollectible accounts as at December 31, 2017. b. Further, Company comes to know that a customer whose receivables were due on December 1, 2017, could not pay due amount of $50000.…
T.J. Race Company uses the direct write-off method for recording Bad Debts Expense. At the beginning of 2018, Accounts Receivable has a $118,000 balance Joumalize the following transactions for T.J. Race: (Click the icon to view the transactions.) (Record debits first, then credits. Exclude explanations from journal entries.) March 13, 2018: Wrote off S. Rose's account for $1,800. Journal Entry Date Mar. 2018 13 Accounts PR Dr. Cocom Cr. More info 2018 Mar. Apr 2019 Nov. Dec. Ded 13 Wrote off S. Rose's account for $1,800, 14 Wrote off P. Soy's account for $650 8 P. Soy paid bad debts of $650 that was written off April 14, 2018 7 Wrote off J. Minor's account as uncollectible, $300. 12 Wrote off D. Lovejoy's account for $350 due from sales made on account in 2018 Print Done
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expenseis established as a percentage of credit sales. For 2018, net credit sales totaled $4,500,000, and the estimated baddebt percentage is 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginningof 2018 and $40,000, after adjusting entries, at the end of 2018.Required:1. What is bad debt expense for 2018 as a percent of net credit sales?2. Assume Johnson makes no other adjustment of bad debt expense during 2018. Determine the amount ofaccounts receivable written off during 2018.3. If the company uses the direct write-off method, what would bad debt expense be for 2018?
During August 2024, Yond Company recorded the following: • Sales of $51,100 ($44,000 on account; $7,100 for cash). Ignore Cost of Goods Sold. • Collections on account, $33,800. • Write-offs of uncollectible receivables, $1,900. • Recovery of receivable previously written off, $200. Date Aug. Accounts and Explanation Debit Credit Requirements Journalize Yond's transactions during August 2024, assuming Yond uses the direct write-off method. 1. 2. Journalize Yond's transactions during August 2024, assuming Yond uses the allowance method.
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2018, theallowance account had a credit balance of $75,000. Credit sales for 2018 totaled $2,400,000 and the year-endaccounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal yearends on December 31.Required:1. Does this situation describe a loss contingency? Explain.2. What is the bad debt expense that Manda Panda should report in its 2018 income statement?3. Prepare the appropriate journal entry to record the contingency.4. What is the net accounts receivable value Manda Panda should report in its 2018 balance sheet?