ABC Company began operations in 2020. Review the transactions and determine theamounts asked below.2020 transactions:1. $300,000 of credit sales2. $250,000 customer payments collected on credit sales3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went intobankruptcy.4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will beuncollectable.***REQUIRED**Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA.Please include your T Accounts in your PDF Upload. NO WORK = NO CREDITJournals are not required, but could be helpful in solving the problem.***REQUIRED*** answer the following as of Dec 31, 2020Do not enter $ or Canvas will mark wrong. (I will fix later)A) Accounts Receivable balance is $B) Allowance for Doubtful ACcounts (ADA) balance is $C) Bad Debt Expense (BDE) balance is $ Using the information from 2020 for ABC Company and proceeUpdate the TAccounts and answer the questions below. Label your entries with theappropriate transaction letter.Use the 2021 transactions:5. $400,000 in credit sales6. $375,000 payment received on credit sales (collected from AR customers)7. Received $500 from the customer previously written off in #3 as a bankruptcysettlement.8. Wrote off a $1,500 receivable from NoCash Customer, who went into bankruptcy.9. At 12/31/21 ABC, Inc estimated 4% of its ending AR will be uncollectable.*** REQUIRED***Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA for the2021 transactions.Include your TAccounts in your PDF upload.***REQUIRED**** answer the following as of Dec 31, 2021A) Accounts Receivable balance is $B) Allowance for Doubtful Accounts (ADA) balance is $C) Bad Debt Expense (BDE) balance is $

2020 transactions: 1. $300,000 of credit sales 2. $250,000 customer payments collected on credit sales 3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went into bankruptcy. 4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will be uncollectable. REQUIRED*** *** Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA. Please include your T Accounts in your PDF Upload. NO WORK = NO CREDIT Journals are not required, but could be helpful in solving the problem. ***REQUIRED*** answer the following as of Dec 31, 2020 Do not enter $ or Canvas will mark wrong. (I will fix later) A) Accounts Receivable balance is $ B) Allowance for Doubtful ACcounts (ADA balance is $ C) Bad Debt Exnense (BDE) balance is $

2020 transactions: 1. $300,000 of credit sales 2. $250,000 customer payments collected on credit sales 3. Wrote off a $2,000 receivable from NotGonnaPay, INC a customer who went into bankruptcy. 4. ABC Company estimates 3% of its Accounts Receivable at 12/31/20 will be uncollectable. REQUIRED* * Update the TAccounts for: Cash, A/R, Sales, Bad Debt Expense, and ADA. Please include your T Accounts in your PDF Upload. NO WORK = NO CREDIT Journals are not required, but could be helpful in solving the problem. REQUIRED answer the following as of Dec 31, 2020 Do not enter $ or Canvas will mark wrong. (I will fix later) A) Accounts Receivable balance is $ B) Allowance for Doubtful ACcounts (ADA balance is $ C) Bad Debt Exnense (BDE) balance is $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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TB Problem 7-170 (Algo) Cordova, Incorporated, reported the following... Cordova, Incorporated, reported the following receivables in its December 31, 2023, year-end balance sheet: Current assets: Accounts receivable, net of $50,000 in allowance for uncollectible accounts Interest receivable Notes receivable Additional information: 1. The notes receivable account consists of two notes, a $100,000 note and a $280,000 note. The $100,000 note is dated October 31, 2023, with principal and interest payable on October 31, 2024. The $280,000 note is dated March 31, 2023, with principal and 8% interest payable on March 31, 2024. 2. During 2024, sales revenue totaled $2,100,000, $1,960,000 cash was collected from customers, and $39,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 8% of year-end gross accounts receivable. Required: 1. In addition to sales revenue,…
QUESTION 1 2020 Net credit sales Estimate of doubtful debts Allowance account credit balance Gross Accounts receivable $100,000. 2% of net credit sales $1,800 before the estimate was made $40,000. Required: Prepare the adjusting entry to record bad debts expense for 2020 using the percentage of sales method. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). In BIUS Paragraph Arial 10pt k Save and Submit to save and submit. Click Save All Answers to save all answers. !!!
SCENARIO #2 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and accounts receivable of $350,000. Yolandi's management has estimated that $9,000 in accounts receivable would be uncollectible (use the aging method). For the end of 2019, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense Allowance for doubtful accounts For the end of 2019, what is the company's net realizable value? 12/31/2020: During 2020, S10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi's management has estimated that S17,000 in accounts receivable would be uncollectible (use the aging method). Bad debt expense Allowance for doubtful accounts For the end of 2020, what is the company's net realizable value?
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Financial Statements and Closing Entries You can download the following information. Williams Inc. has the following information for calendar year 2020: 2020 Prepaid Insurance 400 Bank Service Charge Expense 30 Allowance for Doubtful Accounts 80 Cost of Goods Sold 5,900 Inventory 550 Rent Expense 20 Common Stock 14,000 Depreciation Expense 800 Sales Revenue 14,925 Income Tax Expense 2,400 Cash 3,700 Bad Debt Expense 75 Accounts Receivable 1,300 Interest Revenue 5 Accumulated Depreciation 3,750 Retained Earnings 15,550 Salaries Expense 1,200 Dividends 50 Building 32,375 Accounts Payable 490 Prepare, in good form, the classified Balance Sheet ONLY through the Current Asset section for Williams Inc. for 2020.
PROBLEM SOLVING: 2-1 Accounts Receivables Presented below are unaudited balances of selected accounts of YELLOW Company as of December 31, 2020: Unaudited Bal, 12/31/20 Debit Selected Accounts Credit Cash 500,000 Accounts receivable 1,300,000 Allowance for bad debts 8,000 Net sales 6,750,000 Additional information are as follows: Goods amounting to P50,000 were invoiced for the accounts of UNO Store, recorded on January 2, 2021 with terms n/60, FOB shipping point. The goods were shipped to UNO on December 30, 2020. The bank returned on December 29, 2020, a customer's check for P15,000 marked "NSF", but no entry was made. Goods amounting to P38,000, invoiced for the account of DOS Trading, recorded on December 27, 2020, FOB Destination. The goods were received by DOS on January 3, 2021 After a careful study of YELLOW's past due accounts, it was necessary to write off uncollectible accounts amounting to P25,000. No entry was made yet for this. YELLOW estimates that allowance for bad…
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Notes Payable A business issued a 90-day, 8% note for $52,000 to a creditor for an accounts payable. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Liabilities Assets Stockholders' Equity Statement of Cash Flows Income Statement b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. Balance Sheet Liabilities Assets Stockholders' Equity 4 Statement of Cash Flows Income Statement
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(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &
Current Attempt in Progress * Your answer is incorrect. Crane Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Crane calculated the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at 1% of sales. Due to changes in the economic conditions, Crane will increase that percentage to 3%. The change is made on January 1, 2025. Salles in 2023 were $1630000 and $3130000 in 2024. Sales in 2025 total $4130000. What is the Bad Debt Expense that Crane will record for 2025? $159100 Ⓒ $217800 O $41300 O $123900 e Textbook and Media Save for Later Attempts: 1 of 2 used Submit Answer