Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.80% of its annual credit sales of $623,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $312 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. repare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list

Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.80% of its annual credit sales of $623,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $312 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. repare Chan's journal entries to record the transactions of December 31, February 1, and June 5. View transaction list

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5EA: Millennium Associates records bad debt using the allowance, income statement method. They recorded...

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Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000 on August 1. On December 31, Bank Enterprises determines the loan to be uncollectible. Larson had not paid anything toward the balance due on account. What is the journal entry recording the bad debt write-off?
Olena Mirrors records bad debt using the allowance, balance sheet method. They recorded $343,160 in accounts receivable for the year and $577,930 in credit sales. The uncollectible percentage is 4.4%. On June 11, Olena Mirrors identifies one uncollectible account from Nadia White in the amount of $4,265. On September 14, Nadia Chernoff unexpectedly pays $1,732 toward her account. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. June 11, 2018 identification entry C. Entry for payment on September 14, 2018
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Millennium Associates records bad debt using the allowance, income statement method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,330. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018
Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
[The following information applies to the questions displayed below.]At year-end December 31, Chan Company estimates its bad debts as 0.90% of its annual credit sales of $859,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $430 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.
At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $938,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $469 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.
At year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $817,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $409 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. Record the estimated bad debts expense. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31
At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $859,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $430 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.Prepare the journal entries for these transactions.
At year-end (December 31), Chan Company estimates its bad debts as 0.20% of its annual credit sales of $676,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $338 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. Journal Entry Worksheet 1.Record the estimated bad debts expense. 2.Wrote off P. Park's account as uncollectible. 3.Reinstated Park's previously written off account. 4.Record the cash received on account.
At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions.
! Required information [The following information applies to the questions displayed below.] At year-end December 31, Chan Company estimates its bad debts as 0.30% of its annual credit sales of $812,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $406 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity. Note: Leave no cells blank. December 31 February 1 June 5 Assets Liabilities Equity