COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
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Textbook Question
Chapter 12, Problem 7E
For each of the following independent situations, indicate the
- a. On December 31, 2019, the Notes Receivable account at P. Davis Materials Corporation had a balance of $40,000, which represented a six-month, 5 percent note received from a customer on October 1.
- b. During the week ended June 7, 2019, McCormick Media received $75,000 from customers for subscriptions to its magazine Modern Business. On December 31, 2019, an analysis of the Unearned Subscription Revenue account showed that half of the subscriptions were earned in 2019.
- c. On November 1, 2019, Perez Realty Company rented a commercial building to a new tenant and received $36,000 in advance to cover the rent for six months. Upon receipt, the $36,000 was recorded in the Unearned Rent account.
- d. On November 1, 2019, the Mighty Bucks Hockey Club sold season tickets for 50 home games, receiving $9,000,000. Upon receipt, the $9,000,000 was recorded in the Unearned Season Tickets Income account. At December 31, 2019, the Mighty Bucks Hockey Club had played 5 home games.
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a. On December 31, 2019, the Notes Payable account at Northwood Manufacturing Company had a balance of $13,500. This balance represented a three-month, 10 percent note issued on November 1.
Journal entry worksheet
Record the adjustment for interest.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31, 2019
Adams Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending
December 31, 2019:
Amount
10,000
Customer
Billy Adams
Stan Fry
8,000
Tammy Imes
Shana Wagner
5,000
1,700
Total
24,700
a. Journalize the write-offs for 2019 under the direct write-off method.
b. Journalize the write-offs for 2019 under the allowance method. Also, journalize the adjusting entry for uncollectible
accounts. The company recorded $2,600,000 of credit sales during 2019. Based on past history and industry averages,
1.75% of credit sales are expected to be uncollectible.
c. How much higher or lower would Adams Company's 2019 net income have been under the direct write-off method
than under the allowance method?
%24
Ace Company uses the Aging of receivables method to account for uncollectible
accounts. The company had the following balances on January 01, 2019.
Part A
Accounts receivable..
.$2,800,000
Allowance for uncollectible accounts... .
.$88,800 (credit)
The company completed the following transactions during 2019.
• April 20- Wrote off the balance of $1,000 from Shari Wickham's account as
uncollectible.
• November 27 Re-instated the account of Louis Benn and recorded the
collection of $1,500 as payment in full for her account which had been
written off earlier.
• December 31st-
i. Recorded the uncollectible account expense based on the aging
schedule. The schedule showed that $124,500 of accounts receivable
was estimated as uncollectible.
ii. Made the closing entry for the uncollectible expense account.
Requirements:
1. Prepare journal entries for each transaction (No narrations required)
2. Prepare the Allowance for Uncollectible and the Accounts Receivable
accounts based on the…
Chapter 12 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 12 - Why is a 10-column worksheet used as part of the...Ch. 12 - Prob. 1.2SRQCh. 12 - Prob. 1.3SRQCh. 12 - Prob. 1.4SRECh. 12 - Prob. 1.5SRECh. 12 - Your company prepares financial statements each...Ch. 12 - Prob. 2.1SRQCh. 12 - Prob. 2.2SRQCh. 12 - The trial balance in the first two columns of the...Ch. 12 - Prob. 2.4SRE
Ch. 12 - Prob. 2.5SRECh. 12 - Explain why an error in the amount of an adjusting...Ch. 12 - Why is the accrual basis of accounting favored?Ch. 12 - Prob. 2CSRCh. 12 - How, if at all, does accrued income differ from...Ch. 12 - Prob. 4CSRCh. 12 - Prob. 5CSRCh. 12 - On July 1, 2019, a landlord received 36,000 cash...Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Income Summary amounts are extended to which...Ch. 12 - Prob. 4DQCh. 12 - What types of assets are subject to depreciation?...Ch. 12 - Prob. 6DQCh. 12 - What adjustment is made for depreciation on office...Ch. 12 - What is an accrued expense? Give three examples of...Ch. 12 - Prob. 9DQCh. 12 - What is a prepaid expense? Give three examples of...Ch. 12 - Prob. 11DQCh. 12 - What adjustment is made to record expired...Ch. 12 - What is the alternative method of handling prepaid...Ch. 12 - What is accrued income? Give an example of an item...Ch. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - Prob. 18DQCh. 12 - Prob. 19DQCh. 12 - Prob. 20DQCh. 12 - How does the worksheet help the accountant to...Ch. 12 - The beginning inventory of Norcal Wholesalers was...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - For each of the following independent situations,...Ch. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - The Green Thumb Gardener is a retail store that...Ch. 12 - Healthy Eating Foods Company is a distributor of...Ch. 12 - The Artisan Wines is a retail store selling...Ch. 12 - Prob. 1PBCh. 12 - On June 1, 2019, Raquel Ramirez established her...Ch. 12 - Prob. 3PBCh. 12 - Fun Depot is a retail store that sells toys,...Ch. 12 - Whatnots is a retail seller of cards, novelty...Ch. 12 - The Game Place is a retail store that sells...Ch. 12 - The unadjusted trial balance of Bens Jewelers on...Ch. 12 - Prob. 2CTPCh. 12 - The president of Murray Stainless Steel...Ch. 12 - Prob. 1FSA
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