Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 2, Problem 2.20EX
Errors in
Identify the errors in the following trial balance. All accounts have normal balances.
| Mascot co. Unadjusted Trail Balance For the Month Ending July 31, 2019 |
||||
| Account No. |
Debit balances | Credit Balances | ||
| Cash | 11 | 36,000 | ||
| 12 | 112,600 | |||
| Prepaid insurance | 13 | 18,000 | ||
| Equipment | 14 | 375,000 | ||
| Accounts payable | 21 | 53,300 | ||
| Salaries payable | 22 | 7,500 | ||
| Samuel parson, Capital | 31 | 297,200 | ||
| Samuel parson, Drawing | 32 | 17,000 | ||
| Fees Earned | 41 | 682,000 | ||
| Salary Expense | 51 | 392,800 | ||
| Advertising Expense | 52 | 73,000 | ||
| Miscellaneous Expense | 59 | 11,600 | ||
| 1,189,300 | 1,189,300 | |||
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[The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable
Age of Accounts Receivable
Expected Percent Uncollectible
$ 820,000
Not yet due
1.25%
328,000
1 to 30 days past due
2.00
65,600
31 to 60 days past due
6.50
32,800
61 to 90 days past due
32.75
13,120
Over 90 days past due
68.00
3. On June 30 of the next year, Jarden concludes that a customer’s $5,350 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income?
Required information
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[The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable
Age of Accounts Receivable
Expected Percent Uncollectible
$ 820,000
Not yet due
1.25%
328,000
1 to 30 days past due
2.00
65,600
31 to 60 days past due
6.50
32,800
61 to 90 days past due
32.75
13,120
Over 90 days past due
68.00
2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.)
Required information
Skip to question
[The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.
Accounts Receivable
Age of Accounts Receivable
Expected Percent Uncollectible
$ 820,000
Not yet due
1.25%
328,000
1 to 30 days past due
2.00
65,600
31 to 60 days past due
6.50
32,800
61 to 90 days past due
32.75
13,120
Over 90 days past due
68.00
Required:1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable.
Chapter 2 Solutions
Accounting
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