FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:2. Prepare the journal entries for items (a)-(j). (If no entry is required for a transaction/event, select "No Journal Entry Required" in
the first account field. Do not round intermediate calculations.)
View transaction list
Journal entry worksheet
1
2
3 4
5
6
7
8
11
>
....
Record service revenue of $40,000 sold on account during January.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
Record entry
Clear entry
View general journal
![[The following information applies to the questions displayed below.]
Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current
year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter,
the company switched to the aging of accounts receivable method. The company entered into the following partial list of
transactions during the first quarter.
a. During January, the company provided services for $40,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $20,000 of accounts receivable.
d. On February 15, the company wrote off a $100 account receivable.
e. During February, the company provided services for $30,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,400 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $100 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for
Doubtful Accounts has an unadjusted credit balance of $1,200.
Number of Days Unpaid
Customer
Total
0-30
31-60
61-90
Over 90
Alabama Tourism
$4
200
$4
100
$
80
$
20
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
400
400
6,800
400
17,000
8,400
1,000
800
400
$ 7,300
$ 8,480
$ 1,020
$ 1, 200
40%
Total Accounts Receivable
$18,000
Estimated Uncollectible (%)
2%
10%
20%](https://content.bartleby.com/qna-images/question/e1ca8155-3913-4763-8de6-a36e301422a2/28e69a59-93fd-472b-8110-b76614df1cf0/fyjxdoc_processed.png)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current
year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter,
the company switched to the aging of accounts receivable method. The company entered into the following partial list of
transactions during the first quarter.
a. During January, the company provided services for $40,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $20,000 of accounts receivable.
d. On February 15, the company wrote off a $100 account receivable.
e. During February, the company provided services for $30,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,400 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $100 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for
Doubtful Accounts has an unadjusted credit balance of $1,200.
Number of Days Unpaid
Customer
Total
0-30
31-60
61-90
Over 90
Alabama Tourism
$4
200
$4
100
$
80
$
20
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
400
400
6,800
400
17,000
8,400
1,000
800
400
$ 7,300
$ 8,480
$ 1,020
$ 1, 200
40%
Total Accounts Receivable
$18,000
Estimated Uncollectible (%)
2%
10%
20%
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- Can you also send me how to do this one? 2. Refer to the data below for XYZ Corporation. Credit sales during 2018 850,000 Accounts Receivable—January 1, 2018 334,000 Collections from credit customers during 2018 725,000 Estimated uncollectible accounts based on an aging analysis 13,200 Customer accounts written off as uncollectible during 2018 12,000 Allowance for doubtful accounts 1,700(after write-off of uncollectible accounts) Answer the following questions using the above data: A. What is the balance of Accounts Receivable at December 31, 2018? B. If the aging approach is used to estimate bad debts, what should the balance in Allowance for Doubtful Accountsbe after the bad debts adjustment? C. If the aging approach is used to estimate bad debts, what amount should be recorded as bed debts expense for2018?arrow_forwardOn March 12, jangles corporation received $20, 100 invoice dated March 9. Cash discount terms were 2/10, n/30. On March 16 jangles spent an $8,040 partial payment. What credit should jangles receive? What is jangles outstanding balance?arrow_forwardPlease help with the following question Q3: Shafer Company has the following accounts in its general ledger atJuly 31: Accounts Receivable $49,000 and Allowance for Doubtful Accounts $3,400. During August, the following transactions occurred. Aug.15Sold $30,000 of accounts receivable to More Factors, Inc. who assesses a 2% finance charge. 25Made sales of $2,500 on Visa credit cards. The credit card service charge is 3%. 28Made sales of $4,000 on Shafer credit cards. Instructions (a)Journalize the transactions. (b)Indicate the statement presentation of service charges. BR,arrow_forward
- - (a) On March 3, Kitseiman Appliances sells $667,200 of its receivables to Blossom Inc. Blossom assesses a finance charge of 3% of the amount of receivables sold. Prepare the entry on Kitselman Appliances' books to record the sale of the receivables. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Mar. 3 Date Account Titles May 10 (b) On May 10, Fillmore Company sold merchandise for $13,000 and accepted the customer's America Bank MasterCard. America Bank charges a 2% service charge for credit card sales. Prepare the entry on Fillmore Company's books to record the sale of merchandise. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Account Titles Credit Debit Creditarrow_forward3. On March 3, Greentree Appliances sells $480,000 of its receivables to Naomi Factors, Inc. Naomi Factors assesses a finance charge of 6% of the amount of receivables sold. Prepare the entry on Greentree Appliance's books to record the sale of the receivables. List two advantages to Greentree to using a factor. Date Account Titles and Explanation Ref Debit Credit EXTRA CREDIT: List two advantages to Greentree due to using a factor.arrow_forwardWould you help mearrow_forward
- If Abby INC sells items to a customer who uses a credit card for $1100 and there is a credit card fee of 1.5% Abby will record an : ______ Round your final answer to the nearest dollar A. DEBIT TO ACCOUNT RECIEABLE FOR $1083 B. Credit to sales revenue for $1083 C. debit to sales expense for $17 D. Debit to credit card discount expense for $17arrow_forwardplz help thank uarrow_forward
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