Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 5.3ME
Mini-Exercise 5.3
LO 5
Required:
Calculate the balances at the end of the year for the Accounts Receivable 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.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 4
Maple Co. provides for bad debts expense at the rate of 5.72% of ending Accounts Receivable. On
Jan 1, 20X1, the Allowance for Bad Debts was $18,000. There were $16,000 of accounts written off
during the year. Credit sales for the year were $640,000. Ending Accounts Receivable was
$115,000.
What is the amount of Bad Debt Expense for the year?
Enter your response as a whole number, no commas and no dollar signs.
Your Answer:
Chapters 8-9-10-11 & Ratios i
Help
Saved
1 to 30
$ 96,000
Total
31 to 60
61 to 90
Over 90
$ 600,000
$ 402,000
$ 42,000
$ 24,000
$ 36,000
Accounts receivable
Percent uncollectible
18
28
5%
78
108
a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts
receivable.
b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the
Allowance for Doubtful Accounts is a $4,200 credit,
c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the
Allowance for Doubtful Accounts is a $700 debit.
Complete this question by entering your answers in the tabs below.
Reg A
Reg B and C
b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the
Allowance for Doubtful Accounts is a $4,200 credit.
c. Prepare the adjusting entry to record bad…
Exercise 8-04
Assume the following information for Teal Mountain Corp.
Accounts receivable (beginning balance)
$159,000
Allowance for doubtful accounts (beginning balance)
11,470
Net credit sales
944,000
Collections
906,000
Write-offs of accounts receivable
5,400
Collections of accounts previously written off
2,000
Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable.
Prepare the entries to record sales and collections during the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
(To record sales on account)
(To record collection of accounts receivable)
SHOW LIST OF ACCOUNTS
LINK TO TEXT…
Chapter 5 Solutions
Accounting: What the Numbers Mean
Ch. 5 - Prob. 5.1MECh. 5 - Prob. 5.2MECh. 5 - Mini-Exercise 5.3 LO 5 Accounts receivable, bad...Ch. 5 - Mini-Exercise 5.4 LO 5 Bad debts...Ch. 5 - Mini-Exercise 5.5 LO 7, 8 Cost flow...Ch. 5 - Mini-Exercise 5.6 LO 7, 8 Cost flow...Ch. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Prob. 5.10E
Ch. 5 - Exercise 5.11 LO 5 Bad debts analysis-Allowance,...Ch. 5 - Exercise 5.12 LO 5 Bad debts analysis-Allowance...Ch. 5 - Exercise 5.13 LO 5 Cash discounts-ROI Annual...Ch. 5 - Prob. 5.14ECh. 5 - Exercise 5.15 LO 6 Notes receivable-interest...Ch. 5 - Exercise 5.16 LO 6 Notes receivable-interest...Ch. 5 - Exercise 5.17 LO 7, 8 LIFO versus FIFO-matching...Ch. 5 - Prob. 5.18ECh. 5 - Prob. 5.19ECh. 5 - Prob. 5.20ECh. 5 - Exercise 5.21 LO 5, 6, 8 Transaction...Ch. 5 - Exercise 5.22 LO 5. 8, 10 Transaction...Ch. 5 - Exercise 5.23 LO 5, 6, 7 Transaction...Ch. 5 - Exercise 5.24 LO 7, 8, 10 Transaction...Ch. 5 - Prob. 5.25PCh. 5 - Prob. 5.26PCh. 5 - Problem 5.27 LO 5 Bad debts analysis-Allowance...Ch. 5 - Problem 5.28 LO 5 Bad debts analysis-Allowance...Ch. 5 - Problem 5.29 LO 5 Analysis of accounts receivable...Ch. 5 - Problem 5.30 LO 5 Analysis of accounts receivable...Ch. 5 - Problem 5.31 LO 7, 8 Cost flow assumptions-FIFO...Ch. 5 - Problem 5.32 LO 7, 8 Cost flow assumptions-FIFO,...Ch. 5 - Prob. 5.33PCh. 5 - Prob. 5.34PCh. 5 - Problem 5.35 LO 7 Effects of inventory errors If...Ch. 5 - Prob. 5.36PCh. 5 - Case 5.37 LO 5, 7, 8 Focus company-accounts...Ch. 5 - Case 5.38
LO 5, 7
Comparative analysis of current...
Knowledge Booster
Learn more about
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
- QUESTION 5 Information about Calbee Company is provided below: Ending Accounts Receivable: $100,000 Total Credit Sales: $250,000 Beginning Allowance for Doubtful Accounts: $15,000 (Debit) Total Write-offs: $5.000 Calbee uses the percent of receivables method. It estimates that 3% of receivables will ultimately be uncollectible. What is the amount of Bad Debt Expense? I Iarrow_forwardProblem 17 The Southbreeze Hotel uses the aging of accounts receivable method of estimating bad debts. As of December 31, 20X3, the summarized aging schedule and expected loss percentages are as follows: Aging of Accounts Receivable Current 0-30 31-60 61-90 Over 90 Amount $18,000 $2,200 $1,800 $1,000 $750 Loss % expected 10% 30% 1% 2% 4% Required: 1. Assuming a zero balance in the allowance account, make the necessary journal entry on December 31, 20X3. 2. Assuming a $150 debit balance in the allowance account, make the necessary journal entry on December 31, 20X3.arrow_forwardHOMEWORK 8 - CHAPTER 8 Question 9 of 15 -1 Current Attempt in rrogress Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) $161,000 Allowance for doubtful accounts (beginning balance) ,11,300 Net credit sales ,942,000 Collections 912,000 Write-offs of accounts receivable 5,200 Collections of accounts previously written off 2,200 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. (a) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. 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.) Account Titles and Explanation Debit Creditarrow_forward
- Problem 6 Tantrum Company provided the following information in relation to accounts receivable at year-end: Days Outstanding % Uncollectible Estimated Amount 1,200,000 0-60 1% 2% 61-120 900,000 Over 120 1,000,000 6% During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?arrow_forwardUse the following to answer questions 8 – 11 The following information pertains to RC, Inc. for the month of December: $900,000 38,500 Credit sales Accounts payable 55,400 400 credit Accounts receivable Allowance for Uncollectible accounts Cash sales 300,000 RC uses the percent of receivables method and estimates it will not collect 5% of accounts receivable. Chapter 5 Page 5-1 8. $ Determine the ending balance for the Allowance for Uncollectible Accounts 9. $ Determine the appropriate amount to record for Bad Debt expense 10. $ amount to record for Bad Debt expense Assuming the Allowance for Uncollectible accounts had a $700 debit balance, determine thearrow_forwardQuestion 10 of 15 View Policies Current Attempt in Progress Crane Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $132,500 Allowance for Doubtful Accounts $3,970 Sales Revenue (all on credit) 838,100 Sales Returns and Allowances 50,780 Prepare the journal entry to record bad debt expense assuming Crane Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,630 debit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Account Titles and Explanation (a) Debit Creditarrow_forward
- QUESTION 28 An aging of a company's accounts receivable indicates that $5,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for the period will require a debit to Allowance for Doubtful Accounts for $4, 100. credit to Allowance for Doubtful Accounts for $5,000. debit to Bad Debt Expense for $4,100. debit to Bad Debt Expense for $5,000. QUESTION 29arrow_forwardExercise 8-11 Estimating bad debt expense-percentage of sales CHECK FIGURE: d. Accounts receivable(net)=$232,700 Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing. Account Debit Credit Accounts receivable $70,000 Allowance for doubtful accounts $1,100 Sales (all on credit) 480,000 Sales discounts 8,000 Required Demron estimates that 1.5% of net credit sales will prove to be uncollectible. Prepare the adjusting entry required on December 31, 2020, to estimate uncollectible receivables. During 2021, credit sales were $620,000 (cost of sales $406,500); sales discounts of $12,000 were taken when accounts receivable of $440,000 were collected; and accounts written off during the year totaled $10,000. Prepare the entries for these transactions. Record the adjusting entry required on December 31, 2021 to estimate uncollectible receivables, assuming it is based on 1.5% of net credit sales.…arrow_forwardSaved Expected cash collection H Exercise 7-5A (Algo) Determining cash receipts from accounts receivable LO 7-2 Carmen's Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $660,000 in December. Because Carmen's Dress Delivery is in the mail-order business, all sales are made on account. The company expects a 25 percent drop in sales for January. The balance in the Accounts Receivable account on December 31 was $97,700 and is budgeted to be $72,400 as of January 31. Required a. Determine the amount of cash Carmen's Dress Delivery expects to collect from accounts receivable during January.arrow_forward
- Table 5 On December 31, Grubbs Company has the following account balances Accounts receivable Allowance for doubtful accounts Net credit sales $330,000 $33,000. $37,500 $28,500 $32,500 4,500 credit 1,500,000 Assume again that Grubbs estimates that 10% of accounts receivable will be uncollectible. Under the percentage of receivables method (balance sheet method) the balance in allowance for doubtful accounts after adjustment would be:arrow_forwardQuestion 12 of 20 View Policies Current Attempt in Progress During its first year of operations, Pharoah Company had credit sales of $3,124,900; $652,500 remained uncollected at year-end. The credit manager estimates that $36,100 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 2 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. *** Submit Answerarrow_forwardQUESTION 8 Sales revenue was $50,400, Accounts receivable decreased by 14,599. What was the cash collected from customers?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Corporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Corporate Financial Accounting
Accounting
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY