As of January 1, Terrace Waters, Capital had a credit balance of $500,000. During the year, withdrawals totaled $10,000, and the business incurred a net loss of $320,000.a. Compute the balance of Terrace Waters, Capital as of the end of the year.b. Assuming that there have been no recording errors, will the balance sheetprepared at December 31 balance? Explain.

As of January 1, Terrace Waters, Capital had a credit balance of $500,000. During the year, withdrawals totaled $10,000, and the business incurred a net loss of $320,000.a. Compute the balance of Terrace Waters, Capital as of the end of the year.b. Assuming that there have been no recording errors, will the balance sheetprepared at December 31 balance? Explain.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...

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Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Yates Company's records provide the following information concerning certain account balances and changes in these account balances during the current year. Accounts Receivable: Jan. 1, balance $41,000, Dec. 31, balance $55,000, uncollectible accounts written off during the year, $6,000; accounts receivable collected during the year, $159,000. Compute Sales revenue for the year.
In its first year of operations, Cloudbox has credit sales of $240,000. Its year-end balance in accounts receivable is $14,000, and the company estimates that $3,500 of its accounts receivable is uncollectible. a. Prepare the year-end adjusting entry to estimate bad debts expense. b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $32,000, Cash is $24,000, and Prepaid Rent is $4,000. Note: The company reports Accounts receivable, net on the balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Prepare the year-end adjusting entry to estimate bad debts expense. View transaction list Journal entry worksheet < Record the year-end adjusting entry to estimate bad debts expense. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
In its first year of operations, Cloudbox has credit sales of $210,000. Its year-end balance in accounts receivable is $11,000, and the company estimates that $2,000 of its accounts receivable is uncollectible.a. Prepare the year-end adjusting entry to estimate bad debts expense.b. Prepare the current assets section of Cloudbox’s classified balance sheet assuming Inventory is $24,500, Cash is $16,500, and Prepaid Rent is $3,250. Note: The company reports Accounts receivable, net on the balance sheet.
Barga Company's net sales for Year 1 and Year 2 are $663,000 and $749,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $61,000; and Year 2, $98,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers in the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. Note: Do not round intermediate calculations. Round your "Days' Sales Uncollected" answers to 1 decimal place. Year 1: Year 2: Choose Numerator: Accounts receivable $ $ Days' Sales Uncollected 1 Choose Denominator: X /Net sales X 61,000 x 98,000 x 663,000/ $ 749,000/ $
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, Dec. 31, prior year Accounts Receivable (Gross) (A) Allowance for Doubtful Accounts (XA) Accounts Receivable (Net) (A) $ During the current year, sales on account were $304,798, collections on account were $290,000, write-offs of bad debts were $6,984, and the bad debt expense adjustment was $4,700. Req 1A $ Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. Disregard income tax considerations. 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year. Req 1B 48,103 8,399 39,704 Complete this question by entering your answers in the tabs below. Req 1C Complete the…
Ruiz Company's Accounts Receivable balance at December 31 was $150,000 and there was a balance of $700 in the Allowance for Uncollectible Accounts. Sales for the year were $900,000. The firm estimates credit losses for the year at 1.5% of sales. After the appropriate adjusting entry is made for credit losses, what is the net amount of accounts receivable included in the current assets at year-end? Select one: a. $150,000 b. $135,800 c. $162,700 d. $138,700 e. None of the above
Barga Company's net sales for Year 1 and Year 2 are $666,000 and $747,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $62,000; and Year 2, $95,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1? Complete this question by entering your answers In the tabs below. Required A Required B Complete the below table to calculate the days' sales uncollected at the end of each year. (Do not round intermediate calculations. Round your "Da Sales Uncollected" answers to 1 decimal place.) Days' Sales Uncollected Choose Denominator: Days Days' Sales Uncollected %3D Choose Numerator: Days' sales uncollected !! days Year 1: days Year 2: Required B >
Barga Company's net sales for Year 1 and Year 2 are $668,000 and $748,000, respectively its year-end balances of accounts receivable follow. Year 1, $60,000; and Year 2, $96,000. a. Complete the below table to calculate the days' sales uncollected at the end of each year. b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?
McKensie Company’s Accounts Receivable balance at December 31 was $100,000, and there was a negative balance of $600 in the Allowance for Uncollectible Accounts. The firm estimates that 3% of the Accounts Receivable will prove to be uncollectible. After the appropriate adjusting entry is made for credit losses, what is the net amount of accounts receivable included in the current assets at year-end? Select one: a. $87,900 b. $86,700 c. $97,000 d. $90,000 e. None of the above
Barga Company's net sales for Year 1 and Year 2 are $669,000 and $750,000, respectively. Its year-end balances of accounts receivable follow: Year 1, $56,000; and Year 2, $91,000.a. Complete the below table to calculate the days' sales uncollected at the end of each year.b. Did days’ sales uncollected improve or worsen in Year 2 versus Year 1?
At the end of the prior year, Company reported the following information: Accounts Receivable (Gross) were $125,000 and Allowance for Doubtful Accounts were $2,400. During the current year, sales on account were $150,000, collections on account were $165,000, write-off of bad debts were $6,500, and the bad debt expense adjustment was $5,500. Show how the amounts related to Accounts Receivable would be reported on the balance sheet for the current year. Disregard income tax considerations.