On December 31, 2020, Wolfe-Bache Corporation failed to accrue salaries expense of $1,450. In January 2021, when it paid employees for the December 27–January 2 workweek, Wolfe-Bache made the following entry       Salaries expense 1,450   Cash   1,450

Johnson Company calculates its allowance for uncollectible accounts as 20% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $21,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $350,200, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 38,400 Required: 1. What was the balance in gross accounts receivable as of 12/31/2020? 2. What journal entry should Johnson record to recognize bad debt expense for 2021? 3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021. 4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021? Required 1 Required 2 Required 3 Required 4 What was…

Superior Skateboard Company, located in Ontario, is preparing adjusting entries at December 31, 2023. An analysis reveals the following: During December, Superior sold 6, 600 skateboards that carry a 60 - day warranty. The skateboard sales totalled $391,000. The company expects 7% of the skateboards will need repair under warranty and it estimates that the average repair cost per unit will be $39. A disgruntled employee is suing the company. Legal advisers believe that it is probable that Superior will have to pay damages, the amount of which cannot be reasonably estimated. Superior needs to record previously unrecorded cash sales of $2, 110,000 (cost of sales 60%) plus applicable HST. Superior recognizes that $ 96,000 of $161,000 received in advance for skateboards has now been earned. Required: Prepare any required adjusting entries at December 31, 2023, for each of the above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account…

Below are three independent and unrelated errors.  On December 31, 2017, Wolfe-Bache Corporation failed to accrue office supplies expense of $1,850. In January 2018, when it received the bill from its supplier, Wolfe-Bache made the following entry:       Office supplies expense 1,850   Cash   1,850   On the last day of 2017, Midwest Importers received a $91,000 prepayment from a tenant for 2018 rent of a building. Midwest recorded the receipt as rent revenue. At the end of 2017, Dinkins-Lowery Corporation failed to accrue interest of $8,100 on a note receivable. At the beginning of 2018, when the company received the cash, it was recorded as interest revenue.    Required:For each error:1. What would be the effect of each error on the income statement and the balance sheet in the 2017 financial statements?2. Prepare any journal entries each company should record in 2018 to correct the errors.