On December 31, 2016, when its Allowance for Dou nc. estimates that 8% of its accounts receivable bala che necessary adjustment to Allowance for Doubtful
Q: The following information is taken from the accrual accounting records of Kroger Sales Company:a. Du...
A: Cash basis accounting records income and expense when it is paid whereas accrual basis accounting re...
Q: Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetualinvento...
A: To keep track of financial transactions, journal entries are utilized. You enter transaction informa...
Q: Erie Company reported the following comparative balance sheets: ...
A: Statement of cash flows forms a part of financial statements and is prepared with a view to ascertai...
Q: on Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 ...
A: In this question, we have to find out the activity variance for personnel expense by subtracting the...
Q: Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows: ...
A: Journal Entries Date Account Titles and Explanation Debit Credit A Depreciation Expenses $...
Q: Given the following: Current Assets $ 18,000 Accounts Receivable $ 3,000 Current Liabilitie...
A: Current ratio = Total current assets / Total current liabilities Acid test quick ratio = Quick Asset...
Q: Tracing for several days before and after year-end to recorded purchases is designed to test 1. the ...
A: An auditor must check the authenticity of the transaction and it can be done by getting sufficient a...
Q: 22. The account "wages payable" would appear in the income statement True O False 23. Buying goods a...
A: Solution In accrual accounting , expenses and revenues are recognized in the period when they are e...
Q: 16. Revenue cannot be recognized unless delivery of goods has occurred or services have been rendere...
A: Since you have posted multiple questions we will do the first one for you. To get the other questio...
Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 ...
A: Break even point is the units sold at which the company is in no-profit, no-loss situation. This mea...
Q: Question 6 What should be the initial markup percent in a department having these planned figures? N...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Which of the following statements about accounting information is (are) true? I. Accounting provides...
A: Accounting information is the record / structure / information of the receipt , payment , manage , r...
Q: When adjusting entries were made at the end of the year, the accountant for Parker Companydid not ma...
A: Adjusting entries refer to the the journal entries which are passed at the end of accounting period ...
Q: a. Using the least squares method, develop the equation for predicting weekly receiving report costs...
A: Variable cost: Variable cost is one of the component of total cost that variates with the change in ...
Q: Presented below is information related to ABC Corporation: Common Stock, $1 par value $4,500,000 ...
A: Stockholder's Equity - Stockholder's Equity is the statement that includes Common Stock, Preferred S...
Q: The accountant for Murphy Company prepared the following analysis of its inventory at year end: ...
A: Solution Ending inventory is the amount of the inventory which is not sold during a financial year a...
Q: MC Packaging Limited (“MC") makes aluminum cans for the food processing industry. It produces the ca...
A:
Q: Fox Corporation had the fölloWing Preferred Stock, 5%, $40 par, 30,000 shares authorized, 10,000 sha...
A: Journal Entries S. No. Particulars Ref Debit Credit 1 Cash A/C ...
Q: On January 01, 2021, EFG Company had 100,000 P50 par value ordinary shares outstanding. In addition,...
A: Diluted earnings per share includes the amount which are available for the shareholders per share, a...
Q: Crane Ltd. incurs these expenditures in purchasing a truck: invoice price $42,860; installation of a...
A: Cost of property plant & equipment includes purchases price , taxes ( if credit not available ) ...
Q: Problem 23-17 (IAA) retained earnings on December 31, 2020? • Declared and issued a 30% share divide...
A: According to the question, on January 1, 2020, the Elvis company reported the following shareholders...
Q: The income statement debit column of the worksheet showed the following expenses: Supplies Expense D...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Use the following information to calculate total ending cash and equivalents: Beginning Cash and Equ...
A: Ending cash & cash equivalent will be equal to sum of beginning cash & cash equivalent and c...
Q: 2. What is the capitalized cost of a Sugar MilI Plant w/c requires Php 5,000,000 for construction ,P...
A: Expense The cost that an organization incurs for revenue generation is known as an expense. Accrual ...
Q: Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 ...
A: Break even point : It refers to that point where total cost is equal to total revenue, i e. It is ...
Q: Baird, Inc. sells fireworks. The company's marketing director developed the following cost of goods ...
A: Inventory purchase budget means = Cost of goods sold + Ending Inventory - Beginning Inventory ...
Q: The following cost have been estimated based on sales of 30,000 units Direct materias P300,000 (100...
A: Calculation of Selling price when contribution margin 40%. We know that, Contribution = Selling Pri...
Q: advantages and disadvantages of the scattergram method as compared to the high-low method?
A: Solution High-low method takes high level activity and low level activity and measure the total cost...
Q: On January 1, 2021, PARKSOOYOUNG acquired all the outstanding shares of SUNGJAE for P600,000. The sh...
A: An asset refers to the resources that are generally used for generating the cash flows that help in ...
Q: Use the percentage method to compute the federal income taxes to withhold from the wages or salaries...
A: In absence of any information regarding year , 2019 withholding rates have been used here .
Q: Comfort Foods Inc. uses activity-based costing to determine product costs. For each activity listed ...
A: Given:
Q: Platinum Co. failed to record $72,000 credit purchase of goods that were received on the last day of...
A: Lets understand the basics. When any error is made in recording any expenses and error discovered in...
Q: January 3 Purchased equipment for $55000, paying $45000 in cash and signing a 10000, 4-month, 10% no...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Problem 23-17 (IAA) retained earnings on December 31, 2020? During the current year, the following c...
A: Unappropriated Retained Earnings are the portion of the retained earnings which are not kept for any...
Q: What is the overhead cost assigned to Product X0 under activity-based costing? (Round your intermedi...
A: First stage allocation Processing Supervising Other Total Equipment expense $50,000 $50,000 $...
Q: Partners Mel and Jay each have 200K capital balance and share profit and loss in a ratio of 3:2 resp...
A: The liquidation is a situation where existing partnership comes to an end.
Q: cultural and behavioural expectations of studying for a degree in accounting and financial managment...
A: Cultural and Behavioural expectations would be: setting and promoting guiding values and an ethic...
Q: Tim, a single taxpayer, operates a business as a single-member LLC. In 2021, his LLC reports busines...
A: a) Calculation of Excess loss An excess business loss is the amount by which the total deductions at...
Q: The following questions are based on the material in Chapter 15: 19. Ledger Account balances (prior ...
A: Balance day adjustment reflects the adjustment in certain accounts for unrecorded revenue and expens...
Q: QUESTION: if Chiz is non-VAT registered, how much is the business tax payable?
A: Non Vat Register For the Non Vat register whose gross sales / gross receipts which are not crossed o...
Q: The standard output time is 10 hours and rate per unit is 2 rials, Mr.Mohammed actual time taken for...
A: Standard time = 10 hours standard rate per unit =2 rials Actual time taken = 7 hours Time wages ea...
Q: . Sold merchandise on account, $12,900, with terms 2/10, net 30 on December 26. The cost of the good...
A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...
Q: The Statement of Financial Position of Oliver Ltd as at 30 June 2021 showed the following assets and...
A: Deferred tax: Deferred tax is the effect of timing or temporary differences. The difference between ...
Q: Discussion Question 8-6 (LO. 2) How is cost recovery computed for an asset, in the year it is placed...
A: If the mid-quarter convention applies, the property is treated as though it were disposed of at the ...
Q: ected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:
A: In this question, we have to calculate the ROI
Q: Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, M...
A: Information from Form W-2, Wages and Tax Statement. Rick Davis Amount ($) wages, tips and other...
Q: ABC Company issued 10,000 common stocks with a par value of $5 and a fair value of $25 per share alo...
A: Fair value of common stock = Number of common stock issued × Fair value of each stock = 10,000×$25 =...
Q: 4. Emmanuel, Inc. reported the following items in its December 31, 2021 trial balance: Accounts paya...
A: Total liabilities mean the sum of the amount an entity owes.
Q: 16. Revenue cannot be recognized unless delivery of goods has occurred or services have been rendere...
A: 16. Revenue can be recognized as soon as the rights and property in goods has been transferred, the ...
Q: Which of the following transactions would cause the current ratio to increase (assumingthe current r...
A: The current ratio is frequently used to assess a company's capacity to meet current obligations. A c...
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Step by step
Solved in 2 steps with 1 images
- 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, 3,270Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000On December 31, 2017, when its accounts receivable were $252,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $1,700, Oak Ridge Corp. estimated that $14,100 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entry. On May 11, 2018, Oak Ridge determined that Fei Ya Cheng’s account was uncollectible and wrote off $1,600. On November 12, 2018, Cheng paid the amount previously written off. What is the carrying amount of the receivables on (1) December 31, 2017; (2) May 11, 2018; and (3) November 12, 2018, assuming that the total amount of accounts receivable of $252,000 is unchanged on each of these three dates except for any changes recorded above.
- 1. On December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,293, Pharoah Company estimates that 8% of its accounts receivable balance of $88,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. 2. On May 11, 2017, Pharoah Company determined that B. Jared’s account was uncollectible and wrote off $1,166. 3. On June 12, 2017, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Choose a transaction date December 31, 2016May 11, 2017June 12, 2017 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount 2. Choose a…On December 31, 2017, when its accounts receivable were $276,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $1,800, Marx Corp. estimated that $15,500 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entry. On May 11, 2018, Marx determined that Fei Ya Cheng's account was uncollectible and wrote off $1,700. On November 12, 2018, Cheng paid the amount previously written off. (a) Prepare the required journal entries to record each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 2017 Date Account Titles and Explanation Debit CreditOn December 31, 2024, when its Allowance for Doubtful Accounts had a debit balance of $1,403, Blossom Co. estimates that 9% of its accounts receivable balance of $94,500 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2025, Blossom Co, determined that B. Jared's account was uncollectible and wrote off $1,179. On June 12, 2025, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2024, May 11, 2025, and June 12, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date mber 31, 2024 : 1.2025 : Account Titles and Explanation Bad Debt Expense Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivabile Debit 10998…
- On December 31, 2024, when its Allowance for Doubtful Accounts had a debit balance of $1,469, Cullumber Co. estimates that 11% of its accounts receivable balance of $77,700 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2025, Cullumber Co. determined that B. Jared's account was uncollectible and wrote off $1,139. On June 12, 2025, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2024, May 11, 2025, and June 12, 2025. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date December 31, 2024 May 11, 2025 June 12, 2025 June 12, 2025 Account Titles and Explanation (To reinstate account previously written off) (To record receivables) Debit…On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,371, Tamarisk, Inc. estimates that 8% of its accounts receivable balance of $77,800 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Tamarisk, Inc. determined that B. Jared’s account was uncollectible and wrote off $1,135. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Choose a transaction date December 31, 2021May 11, 2022June 12, 2022 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount…On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,366, Shamrock, Inc. estimates that 9% of its accounts receivable balance of $107,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Shamrock, Inc. determined that B. Jared’s account was uncollectible and wrote off $1,212. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Choose a transaction date December 31, 2021May 11, 2022June 12, 2022 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount…
- On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,293, Pharoah Company estimates that 8% of its accounts receivable balance of $88,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Pharoah Company determined that B. Jared’s account was uncollectible and wrote off $1,166. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500, Skysong, Inc. estimates that 8% of its accounts receivable balance of $85,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Skysong, Inc. determined that B. Jared's account was uncollectible and wrote off $1,100. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To reverse write-off) (To record collection of write-off) >December 31, 2017, when its accounts receivable were $270,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $1,800Corp. estimated that $15,100 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entryOn May 11, 2018, H55 determined that Fei Ya Cheng's account was uncollectible and wrote off $1,700. On November 12, 2018, Cheng paid the amount previously written off .