Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 3, Problem 2MCQ
To determine
Prepare adjusting entry to record the supplies account.
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The Allowance balance is a $200 credit before adjustment. Uncollectible accounts are estimated
to be $2,000.
The adjusting entry to record uncollectible accounts is:
GENERAL JOURNAL
1
2
1
2
Date
Chapter 8-Receivables
Now, the adjusting entry to record uncollectible accounts is:
GENERAL JOURNAL
Description
a.
Description
If the Allowance balance started with a $200 DEBIT balance and uncollectible accounts are
estimated to be $2,000.
Date
с.
Post
ref
Debit
Post
ref
Note: Bad Debt Expense estimate in the prior year was wrong, it was not an error. It was still a
good faith estimate and the apparent violation of the matching principle is allowed under GAAP.
Age Interval
Not Past Due
1-30 days past due
Debit
At the end of the current year, the accounts receivable account has a debit balance of $1,400,000
and sales for the year total $15,350,000. Determine the amount of the adjustment needed.
Page
Credit
The allowance account before adjustment has a debit balance of $23,000. Bad debt
expense…
Prior to recording adjusting entries, the Office Supplies account had a $359 debit balance. A physical count of the supplies showed $105 of unused supplies available. The required adjusting entry is:
a.
Debit Office Supplies $254 and credit Office Supplies Expense $254.
b.
Debit Office Supplies $105 and credit Office Supplies Expense $105.
c.
Debit Office Supplies Expense $254 and credit Office Supplies $254.
d.
Debit Office Supplies Expense $105 and credit Office Supplies $105.
Journalize the following adjusting entries on December 31:
A. The Supplies Account balance as of December 31 is $1,200. Actual supplies on hand equals $800.
B. The company uses the allowance method for accounts receivable. A review of the accounts receivable
aging report indicates that $50,000 of the accounts receivable will not be collectible. The allowance
account has a current balance of $30,000.
C. The trial balance indicates unearned revenue of $9,000. The company has determined that $3,000 of
service has still not yet been provided.
D. The company paid an annual insurance premium of $12,000 during the year. Six months of the
insurance has expired.
E. On January 1, the company purchased a delivery truck for 36,000. The company expects to use the
truck for 3 years.
Chapter 3 Solutions
Principles of Financial Accounting.
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - What is the difference between the cash basis and...Ch. 3 - Prob. 2DQCh. 3 - What type of business is most likely to select a...Ch. 3 - What is a prepaid expense and where is it reported...Ch. 3 - What type of assets requires adjusting entries to...
Ch. 3 - What contra account is used when recording and...Ch. 3 - Prob. 7DQCh. 3 - If a company initially records prepaid expenses...Ch. 3 - Prob. 9DQCh. 3 - Prob. 10DQCh. 3 - Samsung Assume Samsung has unearned revenue. What...Ch. 3 - Prob. 12DQCh. 3 - Question: QUICK STUDY Periodic reporting C1 Choose...Ch. 3 - Prob. 2QSCh. 3 - Identifying accounting adjustments Classify the...Ch. 3 - Prob. 4QSCh. 3 - Prepaid (deferred) expenses adjustments For each...Ch. 3 - Prob. 6QSCh. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Accrued expenses adjustments For each separate...Ch. 3 - Prob. 13QSCh. 3 - Accrued revenues adjustments For each separate...Ch. 3 - Prob. 15QSCh. 3 - Prob. 16QSCh. 3 - Preparing an adjusted trial balance P5 Following...Ch. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - Prob. 20QSCh. 3 - Prob. 21QSCh. 3 - Prob. 22QSCh. 3 - Prob. 1ECh. 3 - Classifying adjusting entries P1 P2 P3 P4 In the...Ch. 3 - Question: Adjusting and paying accrued wages P3...Ch. 3 - Question: Determining cost flows through accounts...Ch. 3 - Prob. 5ECh. 3 - Preparing adjusting entries P1 P2 P3 Prepare...Ch. 3 - Prob. 7ECh. 3 - Analyzing and preparing adjusting entries P5...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Question: Computing and interpreting profit margin...Ch. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Preparing adjusting entries P1 P2 P3 P4 For each...Ch. 3 - Prob. 1APCh. 3 - Prob. 2APCh. 3 - Prob. 3APCh. 3 - Prob. 4APCh. 3 - Prob. 5APCh. 3 - Prob. 1BPCh. 3 - Prob. 2BPCh. 3 - Prob. 3BPCh. 3 - Prob. 4BPCh. 3 - Prob. 5BPCh. 3 - Question: SERIAL PROBLEM Business Solutions P1 P2...Ch. 3 - Prob. 1AACh. 3 - Prob. 2AACh. 3 - Prob. 3AACh. 3 - Question: TAKING IT TO THE NET A1 Access EDGAR...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- ANALY SIS OF ADJUSTING ENTRY FOR SUPPLIES Analyze each situation and indicate the correct dollar amount for the adjusting entry. 1. Ending inventory of supplies is 95. 2. Amount of supplies used is 280.arrow_forwardPlease answer the questions correctly. Thank you.arrow_forwardIn the Adjustments columns of the work sheet, record the following adjusting entries: • For merchandise inventory: Debit Income Summary and credit Merchandise Inventory (to remove the beginning inventory); then debit Merchandise Inventory and credit Income Summary (to enter the ending inventory). • For unearned revenue: Debit the unearned revenue account and credit the revenue account (to record revenue earned) • For supplies used: Debit Supplies Expense and credit Supplies. • For expired insurance: Debit Insurance Expense and credit Prepaid Insurance. • For depreciation: Debit Depreciation Expense and credit Accumulated Depreciation. • For accrued wages or salaries: Debit Wages Expense or Salaries Expense and credit Wages Payable or Salaries Payable. Following are the adjustment data for Bruno Company: a-b. Merchandise inventory (ending), $1,045. c. Professional fees earned, $32,100. d. Supplies inventory (on hand), $1,415. e. Insurance expired, $750. f.…arrow_forward
- Prior to recording adjusting entries, the Office Supplies account had a $392 debit balance. A physical count of the supplies showed $96 of unused supplies available. The required adjusting entry is: Multiple Choice Debit Office Supplies $96 and credit Supplies Expense $296. Debit Office Supplies Expense $296 and credit Office Supplies $296. Debit Office Supplies $296 and credit Office Supplies Expense $296. Debit Office Supplies $96 and credit Office Supplies Expense $96 Debit Office Supplies Expense $96 and credit Office Supplies $96.arrow_forwardNote: You must complete parts 1, 2, and 3 before completing part 4 of this comprehensive problem. Based on the following selected data, journalize the adjusting entries as of December 31 of the current year: If an amount box does not require an entry, leave it blank. If no entry is required, select "No Entry Required" from the dropdown and leave the amount boxes blank. a. Estimated uncollectible accounts at December 31, $16,000, based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $2,000 (debit). Description Debit Credit b. The physical inventory on December 31 indicated an inventory shrinkage of $3,300. Description Debit Credit c. Prepaid insurance expired during the year, $22,820. Description Debit Credit d. Office supplies used during the year, $3,920. Description Debit Creditarrow_forwardFill the blanks: The adjusting entries would include a debit to ....blank.... for 1250 and a credit to ....blank.... The adjusting entries would include a ....blank.... to accounts receivable for ....blank.... The adjusting entry would include a debit to....blank.... for 150 and a credit to ....blank....arrow_forward
- At December 31 of the current year, Account Receivable has a balance of $900,000, the Allowence for Uncollectible Accounts has a debit balance of $1,000 and net credit sales for the year are $3,000,000. Using the aging-of-receivables method, the balance of Allowence for Uncollectible Accounts is estimated at $30,000. Required: 1. Journalize the adjusting entry. Omit the explanation. 2. Determine the net realizable value of accounts receivable at the end of the year.arrow_forwardPrepare the adjusting journal entry at December 31 to record credit losses, assuming that the allowance account has a debit balance of $4,940 before adjustment. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts) Date Account Titles and Explanation Dec. 31 Allowance for Expected Credit Losses eTextbook and Media Debit 25620 Credit 25620arrow_forwardThe adjusting entries made are: A debit entry of ...blank... to Accounts Receivable and a credit entry to ..blank... A debit entry of 180 to ..blank... and a credit entry to ..blank... A debit entry of 150 to ..blank... and a credit entry to ..blank... A debit entry of ..blank... to ..blank... and a credit entry to supplies A blank entry of 400 to ..blank... and a ..blank... entry of 400 to ..blank...arrow_forward
- What are the adjusting entries?arrow_forwardPrepare the Adjusting Journal Entry for the following: 1. Accounts Receivable has a balance of P78,000. It is estimated that 3% of this will be uncollectible. 2. Accounts Receivable and its corresponding allowance have balances of P229,000 and P5,000 respectively. It is estimated that 7.5% of this will be uncollectible.arrow_forwardCHOOSE FROM THE FOLLOWING ACCOUNTS FOR THE CORRECT ACCOUNT OF ADJUSTING ENTRIES: deferred revenue salesarrow_forward
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