At December 31, 2021, Cheyenne Corp. reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts 1. During 2022, the company had the following transactions related to receivables. 2. 3. 4. Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible Sales on account Sales returns and allowances $619,000 No Account Titles and Explanation 1. 37,000 2. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) $2,369,000 49,000 2,316,000 43,000 17,000 Debit Credit

At December 31, 2021, Cheyenne Corp. reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts 1. During 2022, the company had the following transactions related to receivables. 2. 3. 4. Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible 5. Recovery of bad debts previously written off as uncollectible Sales on account Sales returns and allowances $619,000 No Account Titles and Explanation 1. 37,000 2. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) $2,369,000 49,000 2,316,000 43,000 17,000 Debit Credit

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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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.
Estimating Bad Debts from Receivables Balances The following information is extracted from Shelton Corporations accounting records at the beginning of 2019: During 2019, sales on credit amounted to 575,000, 557,400 was collected on outstanding receivables and 2,600 of receivables were written off as uncollectible. On December 31, 2019, Shell on estimastes its bad debts to be 4% of the outstanding gross accounts receivable balance. Required: 1. Prepare the journal entry necessary to record Sheltons estimate of bad debt expense for 2019. 2. Prepare the Accounts Receivable section of Shelton's December 31, 2019, balance sheet. 3. Compute Shelton's receivables turnover. (Round to one decimal place.) 4. It Sheldon uses IFRS, what might be the heading for the accounts receivable section in Requirement 2?
Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an $825,000 accounts receivable balance at the end of 2018 and $756,000 at the end of 2019. Fortune uses the balance sheet method to record bad debt estimation at 7.5% during 2018. To manage earnings more favorably, Fortune changes bad debt estimation to the income statement method at 5.5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Fortune in 2019 as a result of its earnings management.
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
Prior 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. 1,154,000
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.
At December 31, 2021, Concord Co. reported the following information on its balance sheet. Accounts receivable $959,700 Less: Allowance for doubtful accounts 78,800 During 2022, the company had the following transactions related to receivables. 1. Sales on account $3,715,300 2. Sales returns and allowances 49,700 3. Collections of accounts receivable 2,801,100 4. Write-offs of accounts receivable deemed uncollectible 89,800 5. Recovery of accounts previously written off as uncollectible 28,000 (d) Compute the accounts receivable turnover and average collection period for 2022. (Round accounts receivable turnover to 2 decimal places, e.g. 25.25 and average collection period to 1 decimal place, e.g. 25.2.) Accounts receivable turnover ratio Average collection period times days
At December 31, 2021, Cullumber Imports reported this information on its balance sheet. Accounts receivable: $565700 Less: Allowance for doubtful accounts: $38000 During 2022, the company had the following transactions related to receivables. 1. Sales on account: 2560000 2. Sales on returns and allowances: 50000 3. Collections of accounts receivable: 2260000 4. Write-offs of accounts receivable deemed uncollectible: 42400 5. Recovery of bad debts previously written off as uncollectible: 16000 Compute the accounts receivable turnover.
At December 31, 2024, Sunland Imports reported this information on its balance sheet. Accounts receivable Less: Allowance for doubtful accounts 1. During 2025, the company had the following transactions related to receivables. 2. 3. 4. 5. Sales on account Sales returns and allowances $573,000 Collections of accounts receivable 33,000 Write-offs of accounts receivable deemed uncollectible Recovery of bad debts previously written off as uncollectible $2,450,000 56,000 2,150,000 46,000 20,000
Accounts receivable At December 31, 2021, House Co. reported the following information on its balance sheet. Less: Allowance for doubtful accounts 1. 2. During 2022, the company had the following transactions related to receivables. 3. 4. 5. n Sales on account Sales returns and allowances o $960,000 80,000 Show Transcribed Text Collections of accounts receivable Write-offs of accounts receivable deemed uncollectible Recovery of accounts previously written off as uncollectible $3,700,000 50,000 2,810,000 90,000 29,000 1.) Compute the accounts receivable turnover and average collection period for 2022
(d) At December 31, 2021, Sunland Company reported this information on its balance sheet. Accounts receivable $592,000 Less: Allowance for doubtful accounts 41,000 During 2022, the company had the following transactions related to receivables. 1. Sales on account $2,780,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,480,000 4. Write-offs of accounts receivable deemed uncollectible 44,000 5. Recovery of accounts previously written off as uncollectible 17,000 X Your answer is incorrect. Compute the accounts receivable turnover and average collection period, assuming the expected uncollectibles informatio provided in (c). (Round answers to 1 decimal place, e.g. 25.2. Use 365 days for calculation.) Accounts receivable turnover Average collection period 3.9 times 93.6 days
At December 31, 2018, Oriole Company reported the following information on its balance sheet. Accounts receivable $948,000 Less: Allowance for doubtful accounts 78,000 During 2019, the company had the following transactions related to receivables. 1. Sales on account $3,609,930 2. Sales returns and allowances 51,000 3. Collections of accounts receivable 2,756,000 4. Write-offs of accounts receivable deemed uncollectible 97,000 5. Recovery of bad debts previously written off as uncollectible 28,000 Compute the accounts receivable turnover for 2019, assuming the expected bad debt information provided in (c). (Round answer to 2 decimal places, e.g. 25.25.)