Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 4, Problem 27EA
1.
To determine
Record the transactions into
2.
To determine
Determine the amount that will be shown on the year-end income statement for bad debts expense.
3.
To determine
Determine the balance in the allowance uncollectible account after adjustment.
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At the beginning of the year, accounts recelvable were $146,000 and the allowance for bad debts was $11,700. During the year, sales
(all on account) were $602,000, cash collections were $582,000, bad debts expense totaled $14,800, and $12,200 of accounts
recelvable were written off as bad debts.
Required:
Calculate the balances at the end of the year for the Accounts Recelvable and Allowance for Bad Debts accounts. (Hint. Use T-
accounts to analyze each of these accounts, plug In the amounts that you know, and solve for the ending balances.)
Ending balance
Accounts receivable
Allowance for bad debts
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1
Sold $1,350,700 of merchandise on credit (that had cost $984,200), terms n/30.
Wrote off $19,700 of uncollectible accounts receivable.
Received $674,900 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible.
Year 2
Sold $1,533,900 of merchandise (that had cost $1,314,500) on credit, terms n/30.
Wrote off $33,700 of uncollectible accounts receivable.
Received $1,115,300 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.30% of accounts receivable would be uncollectible.
Required:Prepare journal entries to record Liang’s Year 1 and Year 2 summarized transactions and its year-end…
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable
collections, and bad debts. These transactions are summarized as follows.
Year 1
Sold $1,346,100 of merchandise on credit (that had cost $983,000), terms n/30.
Wrote off $21,100 of uncollectible accounts receivable.
Received $673,300 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.80% of accounts receivable would be uncollectible.
Year 2
Sold $1,577,400 of merchandise (that had cost $1,329,500) on credit, terms n/30.
Wrote off $25,000 of uncollectible accounts receivable.
Received $1,122,600 cash in payment of accounts receivable.
In adjusting the accounts on December 31, the company estimated that 1.80% of accounts receivable would be uncollectible.
Required:
Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end…
Chapter 4 Solutions
Financial Accounting
Ch. 4 - Prob. 1YTCh. 4 - Prob. 2YTCh. 4 - Suppose at the end of the year Pendleton Corp.s...Ch. 4 - Prob. 4YTCh. 4 - Prob. 5YTCh. 4 - Prob. 6YTCh. 4 - Prob. 7YTCh. 4 - Prob. 1QCh. 4 - Prob. 2QCh. 4 - Prob. 3Q
Ch. 4 - Prob. 4QCh. 4 - What does true cash balance refer to?Ch. 4 - Identify and explain the financial statements on...Ch. 4 - Describe how accounts receivable arise. What does...Ch. 4 - Prob. 8QCh. 4 - Define net realizable value, book value, and...Ch. 4 - Explain the difference between the direct...Ch. 4 - If a company uses the allowance method of...Ch. 4 - Describe the two allowance methods used to...Ch. 4 - Which method of calculating the allowance for...Ch. 4 - Which method of calculating the allowance for...Ch. 4 - What are the advantages and disadvantages of...Ch. 4 - What is the difference between accounts receivable...Ch. 4 - What is the formula to calculate the accounts...Ch. 4 - How does a firm use its accounts receivable...Ch. 4 - Prob. 19QCh. 4 - Prob. 20QCh. 4 - Prob. 1MCQCh. 4 - Prob. 2MCQCh. 4 - Prob. 3MCQCh. 4 - Prob. 4MCQCh. 4 - Prob. 5MCQCh. 4 - Prob. 6MCQCh. 4 - Prob. 7MCQCh. 4 - Prob. 8MCQCh. 4 - Prob. 9MCQCh. 4 - Prob. 1SEACh. 4 - Prob. 2SEACh. 4 - Prob. 3SEACh. 4 - Prob. 4SEACh. 4 - Prob. 5SEACh. 4 - Prob. 6SEACh. 4 - Prob. 7SEACh. 4 - Prob. 8SEACh. 4 - Prob. 9SEACh. 4 - Prob. 10SEBCh. 4 - Prob. 11SEBCh. 4 - Prob. 12SEBCh. 4 - Prob. 13SEBCh. 4 - Prob. 14SEBCh. 4 - Prob. 15SEBCh. 4 - Prob. 16SEBCh. 4 - Prob. 17SEBCh. 4 - Prob. 18SEBCh. 4 - Prob. 19EACh. 4 - Prob. 20EACh. 4 - Prob. 21EACh. 4 - Prob. 22EACh. 4 - Prob. 23EACh. 4 - Prob. 24EACh. 4 - Prob. 25EACh. 4 - Prob. 26EACh. 4 - Prob. 27EACh. 4 - Prob. 28EACh. 4 - Prob. 29EACh. 4 - Prob. 30EACh. 4 - Prob. 31EACh. 4 - Prob. 32EBCh. 4 - Prob. 33EBCh. 4 - Prob. 34EBCh. 4 - Prob. 35EBCh. 4 - Prob. 36EBCh. 4 - Prob. 37EBCh. 4 - Prob. 38EBCh. 4 - Prob. 39EBCh. 4 - Prob. 40EBCh. 4 - Prob. 41EBCh. 4 - Prob. 42EBCh. 4 - Prob. 43EBCh. 4 - Prob. 44EBCh. 4 - Prob. 45PACh. 4 - Prob. 46PACh. 4 - Prob. 47PACh. 4 - Prob. 48PACh. 4 - Prob. 49PACh. 4 - Prob. 50PACh. 4 - Prob. 51PACh. 4 - Prob. 52PACh. 4 - Prob. 53PBCh. 4 - Prob. 54PBCh. 4 - Prob. 55PBCh. 4 - Prob. 56PBCh. 4 - Prob. 57PBCh. 4 - Prob. 58PBCh. 4 - Prob. 59PBCh. 4 - Prob. 60PBCh. 4 - Prob. 1FSACh. 4 - Prob. 2FSACh. 4 - The following information has been adapted from...Ch. 4 - Prob. 1CTPCh. 4 - Prob. 2CTPCh. 4 - The information given here was taken from Yahoo!...Ch. 4 - Prob. 1IECh. 4 - Prob. 2IECh. 4 - The information given here was taken from Yahoo!...
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