Solstice Company determines on October 1 that it cannot collect $69,000 of its accounts receivable from its customer, P. Moore. Apply the direct write-off method to record this loss as of October 1.

Dengar

CHPT#8_4 Journal Entries for Credit Losses  At the beginning of the year, Portal Company had the following accounts on its books: Accounts Receivable $140,000 Debit Allowance for Doubtful Accounts $8,000 Credit During the year, credit sales were: $1,173,000   and collections on account were: $1,175,000   The following transactions, among others, occurred during the year: Feb.17 Wrote off R. Lowell’s account, $4,000 May.28 Wrote off G. Boyd’s account, $3,400 Oct.13 Received $600 from G. Boyd, who is in bankruptcy proceedings,     in final settlement of the account written off on May 28.     This amount is not included in the $1,175,000 collections.   Dec.15 Wrote off K. Marshall’s account. $1,600 Dec.31 In an adjusting entry, recorded the allowance for doubtful accounts at 0.9%   of credit sales for the year.   a. Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.b. Show how…

9:28 AM 0 0.1KB/s ll 86 PP - A:R_-106493777 目 At December 31, Banana Company reports the following results for its calendar year from the adjusted trial balance. I. Credit sales Cash sales Accounts Receivable Allowance for doubtful accounts (credit balance) Php 8,100,00o 2,350,000 412.000 13,000 Required: Prepare the adjusting entry to record Bad Debts Expense using the following independent methods: a. Sales Method, assuming estimated bad debts is 1% b. Accounts Receivable Method, assuming bad debts is 18% c. Aging of Accounts Receivable, assume the following: 50% are current accounts, estimated uncollectible for current accounts is 1% 30% are over 31 days to 90 days, estimated uncollectible accounts is 20% 20% are over 90 days, estimated uncollectible accounts is 50% 111. Lemon Company allows customers to make purchases on credit. The terms of all credit sales are 2/10, n/30, and all sales are recorded at the gross price. Other customers can use a bank credit card where the bank…

Exercise 7-4 (Algo) Direct write-off method LO P1 Dexter Company uses the direct write-off method.  March 11 Dexter determines that it cannot collect $10,000 of its accounts receivable from Leer Company. March 29 Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.  Prepare journal entries to record the above transactions.

None

450 000 Bad Debts A company does not adjust its accounts receivable by estimating bad debts at the end of the fiscal period. It uses a method called direct write-off. With this method accounts receivable are written off when they are determined to be uncollectible For example, on January 31, 20-2, a debt of $1500 was determined to be uncol. lectible because the customer, P. Kully, had declared bankruptcy. The sale of $1500 had been made in the previous fiscal period. This entry was made on January 31, 20-2: Jan. 31 Bad Debts Expense 150000 Accounts Receivable/P. Kully To write off account of bankrupt customer. 150000 Questions 1. How does the fact that an adjustment for estimated bad debts was not made in 20-1 affect the financial statements for that year? 2. How does the write-off entry affect the financial statements of 20-2?

QS 9-7 (Algo) Reporting allowance for doubtful accounts LO P2 On December 31 of Swift Company’s first year, $51,000 of accounts receivable was not yet collected. Swift estimated that $2,100 of its accounts receivable was uncollectible and recorded the year-end adjusting entry.1. Compute the realizable value of accounts receivable reported on Swift’s year-end balance sheet.2. On January 1 of Swift’s second year, it writes off a customer’s account for $400. Compute the realizable value of accounts receivable on January 1 after the write-off.

None

! Required information Problem 7-2A (Static) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 1,905,000 $ 5,682,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts Problem 7-2A (Static) Part 1 $ 1,270,100 debit $ 16,580 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 1.5% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31).