D l.3:56Done a1961caa318d9983..._¿JWIÇ̟IJIQ2- Expand Furniture Store has credit sales of $400,000 in 2016and a debit balance of $600 in the Allowance for DoubtfulAccounts at year end. As of December 31, 2016, $130,000 ofaccounts receivable remain uncollected. The credit managerprepared an aging schedule of accounts receivable and estimatesthat $7,000 will prove to be uncollectible.On March 4, 2017, the credit manager authorizes a write-off ofthe $1,200 balance owed by AhmadInstructions(а)Prepare the adjusting entry to record the estimateduncollectible accounts expense in 2016.(b)Show the balance sheet presentation of accountsreceivable on December 31, 2016.(c)On March 4, before the write-off, assume the balance ofAccounts Receivable account is $160,000 and the balance ofAllowance for Doubtful Accounts is a credit of $3,000. Makethe appropriate entry to record the write-off of the Ahmadaccount. Also show the balance sheet presentation ofaccounts receivable before and after the write-off.Q3- On December 1, Aramex Company introduces a newproduct that includes a one-year warranty on parts. In December,500 units are sold. Management believes that 5% of the unitswill be defective and that the average warranty costs will be $60per unit. Prepare the adjusting entry at December 31 to accruethe estimated warranty cost.Q4- Datco Company has the following selected accounts afterposting adjusting entries:Accounts Payable$ 45,000Notes Payable, 3-month70,000Accumulated Depreciation-Equipment14,000FICA Taxes Payable27,000Notes Payable, 5-year, 8%29,0006,0003,000200,00016,00030,000Warranty LiabilityPayroll Tax ExpenseInterest PayableMortgage PayableSales Taxes PayableInstructions(а)Prepare the current liability section of Datco Company'sbalance sheet, assuming $25,000 of the mortgage is payablenext year. (List liabilities in magnitude order, with largestfirst.)(b)Comment on Datco Company liquidity, assuming totalcurrent assets are $450,000.

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Q2- Expand Furniture Store has credit sales of $400,000 in 2016 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2016, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2017, the credit manager authorizes a write-off of the $1,200 balance owed by Ahmad Instructions Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2016. Show the balance sheet presentation of accounts (a) (b) receivable on December 31, 2016. (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the write-off of the Ahmad account. Also show the balance sheet presentation of accounts receivable before and after the write-off.

Q2- Expand Furniture Store has credit sales of $400,000 in 2016 and a debit balance of $600 in the Allowance for Doubtful Accounts at year end. As of December 31, 2016, $130,000 of accounts receivable remain uncollected. The credit manager prepared an aging schedule of accounts receivable and estimates that $7,000 will prove to be uncollectible. On March 4, 2017, the credit manager authorizes a write-off of the $1,200 balance owed by Ahmad Instructions Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2016. Show the balance sheet presentation of accounts (a) (b) receivable on December 31, 2016. (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $3,000. Make the appropriate entry to record the write-off of the Ahmad account. Also show the balance sheet presentation of accounts receivable before and after the write-off.

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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Slow Running Shoes uses the Aging of receivables method to account for uncollectible accounts. The balance in the Allowance for uncollectible account as at Jan 1st, 2010 was $10,500 (credit) The balance in the Accounts Receivable account as at Jan 1st, 2010 was $133,000. The company completed the following transactions during 2010 and 2011: 2010 June 10th Wrote off the balance of $600 from Manny Miller’s account as uncollectible September 15th Re-instated the account of Betty Lou and recorded the collection of $1200 as payment in full for her account which had been written off earlier December 31st Recorded the uncollectible account expense based on the aging schedule. The schedule showed that $14,100 of accounts receivable was estimated as uncollectible December 31st Made the closing entry for the uncollectible expense account 2011 Jan 17 Sold inventory to Jack Frost, $1100, on account August 15 Wrote off as uncollectible the…