April showers sells goods on credit to most of its customers. In order to control its debtor collection system, the company maintaiņs a sales ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger amounts to sh12, 802, whereas the balance on the sales ledger control account is sh12,550. Upon investigating the matter, the following errors were discovered: 1. Sales for the week ending 27 March 2019 amounting to sh850 had been omitted from the control accoun t. 2. A debtor's account balance of sh300 had not been included in the list of balances. &. Cash received of sh 750 had been entered in a personal account as sh570. 4. Discounts allowed totaling sh100 had not been entered in the control account. 5. A personal account balance had been undercast by sh200. a. A contra item of sh400 with the purchase ledger had not been entered in the control account. 1. A bad debt of sh500…

Elton John, a friend of yours, overheard a discussion at work about changes his employer wants to make in accounting for uncollectible accounts. John knows little about accounting, and he asks you to help make sense of what he heard. Specifically, he asks you to explain the differences between the percentage-of-sales, percentage-of-receivables, and the direct write-off methods for uncollectible accounts. Instructions In a letter of one page (or less), explain to John the three methods of accounting for uncollectibles. Be sure to discuss differences among these methods. Elton John, a friend of yours, overheard a discussion at work about changes his employer wants to make in accounting for uncollectible accounts. John knows little about accounting, and he asks you to help make sense of what he heard. Specifically, he asks you to explain the differences between the percentage-of-sales, percentage-of-receivables, and the direct write-off methods for uncollectible accounts. Instructions In…

Blossom Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $310000 and credit sales are $3110000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Blossom Company make if the Allowance for Doubtful Accounts has a credit balance of $3100 before adjustment?

Anis supplies stationery to her customers on credit. Based on previous years’ trends, 2% of her accounts receivable will turn bad. To be prudent, she wants to record this potential loss in her books. Which of the following is the correct journal entry to record this estimate?   Select one: a. Debit- Allowance for doubtful debtsCredit- Accounts receivable  b. Debit- Allowance for doubtful debtsCredit- Statement of Profit or Loss and Other Comprehensive Income c. Debit- Statement of Profit or Loss and Other Comprehensive IncomeCredit- Allowance for doubtful debts d. Debit- Bad debt expenseCredit- Accounts receivable

The chief accountant for Dickinson Corporation provides you with the following list of accounts receivable written off in the current year. Date     Customer     Amount March 31     E. L. Masters Company     $7,800 June 30 Stephen Crane Associates  6,700 September 30 Amy Lowell"s Dress Shop  7,000 December 31 R. Frost, Inc.  9,830 Dickinson follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the Internal Revenue Service will not accept other methods for recognizing bad debts. All of Dickinson’s sales are on a 30-day credit basis. Sales for the current year total $2,200,000. The balance in Accounts Receivable at year-end is $77,000 and an analysis of customer risk and charge-off experience indicates that 12% of receivables will be uncollectible (assume a zero balance in the allowance). Instructions a.    Do you agree or disagree with…

During its first year of operations, Sheridan Company had credit sales of $3,596,600; $660,700 remained uncollected at year-end. The credit manager estimates that $43,200 of these receivables will become uncollectible.     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 Debit Credit               List of Accounts                     Prepare the current assets section of the balance sheet for Sheridan Company. Assume that in addition to the receivables it has cash of $92,200, inventory of $134,100, and prepaid insurance of $8,100. (List Current Assets in order of liquidity.) SHERIDAN COMPANYBalance Sheet (Partial)                                                                                               $          $…

Kingbird & Co. reported the following information in its general ledger for the year ended November 30, 2021. Mr. Kingbird has learned that the receivable from Solar Company is not collectible due to the downturn in the economy and authorizes his accountant to write off the account. Sales Debit Credit 920,000 Allowance for Doubtful Accounts Debit Credit 12,600 Accounts Receivable Debit Credit 469,000 Accounts Receivable Subledger - Solar Company Debit Credit 4,400 Record the write off on November 30, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Nov, 30 Allowance for Doubtful Accounts 4,400 Accounts Receivable 4.400 (b) Six months later, Mr. Solar sends Kingbird & Co. payment in full his previously written off account. Record the two required entries for this transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)…

During its first year of operations, Cullumber Company had credit sales of $3,701,300; $657,200 remained uncollected at year-end. The credit manager estimates that $40,500 of these receivables will become uncollectible.           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 Debit Credit                       Prepare the current assets section of the balance sheet for Cullumber Company. Assume that in addition to the receivables it has cash of $92,900, inventory of $131,400, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CULLUMBER COMPANYBalance Sheet (Partial)  Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant…

During its first year of operations, Crane Company had credit sales of $3,064,300; $655,000 remained uncollected at year-end. The credit manager estimates that $36,900 of these receivables will become uncollectible. 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 Debit Credit List of Accounts Prepare the current assets section of the balance sheet for Crane Company. Assume that in addition to the receivables it has cash of $94,400, inventory of $135,200, and prepaid insurance of $8,500. (List Current Assets in order of liquidity.) CRANE COMPANY Balance Sheet (Partial) 24 %24 %24