ACC 101 Lecture 11: Ch 7 and 8_

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28 Jan 2019

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Ch 7 and 8 homework: prepare a bank reconciliation from the following information: Balance per bank statement as of june 30, Balance per books as of june 30, ,479. 48. Calculate the amount of cash and cash equivalents that will be shown on the company"s year-end balance sheet. A: (5,600 + 10,000 + 64,000 + 180,000: accounts receivable aging method. Security service company"s accounts receivable account shows a debit balance of ,000 at the end of the year. An aging analysis of the individual accounts indicates estimated uncollectible accounts to be ,700. Prepare the journal entry to record the uncollectible accounts expense under each of the following independent assumptions: Allowance for uncollectible accounts has a credit balance of before adjustment. Allowance for uncollectible accounts has a debit balance of before adjustment. At the beginning of 2014, the balances for accounts receivable and allowance for uncollectible. In addition, ,500 in uncollectible accounts was written off.

Related Questions

Sam Company prepared the following bank reconciliation on November 30:

Balance per Bank Statement		2,100,000
Deposits outstanding		300,000
Checks outstanding		( 30,000 )
Correct cash balance		2,370,000

Balance per book		2,372,000
Bank service charge		( 2,000 )
Correct cash balance		2,370,000

December Data are as follows:	Bank	Book

Checks recorded	2,300,000	2,360,000
Deposit recorded	1,620,000	1,800,000
Collection by bank 400,000 note receivable plus interest	420,000	-
NSF customer check returned	10,000
Balances	1,830,000	1,810,000

1. What is the amount of checks outstanding on December 31?
a. 30,000
b. 90,000
c. 60,000
d. 0

2. What is the amount of deposits in transit on December 31?
a. 480,000
b. 120,000
c. 180,000
d. 680,000

3. What is the adjusted cash in bank on December 31?
a. 1,180,000
b. 2,220,000
c. 2,240,000
d. 2,780,000

salmoneagle833

Learning Objective 4: Apply GAAP to uncollectible receivables at December 31, 2016, before any year-end adjustments, the Accounts Receivable balance of Haley Travel, Inc., is $400,000. The Allowance for Doubtful Accounts has a $19,600 credit balance. Haley Travel prepares the following aging schedule for Accounts Receivable:

Age of Accounts

Total Balance 1-30 Days 31-60 Days 61-90 Days Over 90 Days

$400,000 $180,000 $120,000 $80,000 $20,000

Estimated uncollectible 0.5% 5.0% 11.0% 50.0%

Requirements:

1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low?

2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.

3. Show how Haley Travel will report Accounts Receivable on its December 31 balance sheet

Solution:

	Req. 1




			1-30	31-60	61-90	Over 90	Total
			days	days	days	days	balance

	Est. % uncollectible		x .005	x .05	x .11	x .50
	Bal. in Allow. for Doubtful Accounts should be
	Bal. in Allow. for Doubtful Accounts should be		$ 0	$ 0	$ 0	$ 0	$ -
	Current balance
	Amount needed in adj. entry

	Req. 2
	Journal
	DATE	ACCOUNT TITLES AND EXPLANATION				DEBIT	CREDIT
	Dec. 31
							-



		Allowance for Doubtful Accounts


			Bal.



	Req. 3
	BALANCE SHEET
	Current assets:
		Cash					$ XX
		Short-term investments					XX
		Accounts receivable, net of allowance
		for doubtful accounts of $					*
	Or
	*Another way to report accounts receivable is
		Accounts receivable
		Less: Allowance for doubtful accounts

coffeesalmon341

Age of Accounts

Total Balance 1-30 Days 31-60 Days 61-90 Days Over 90 Days

$400,000 $180,000 $120,000 $80,000 $20,000

Estimated uncollectible 0.5% 5.0% 11.0% 50.0%

Requirements:

1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low?

2. Make the entry required by the aging schedule. Prepare a T-account for the allowance.

3. Show how Haley Travel will report Accounts Receivable on its December 31 balance sheet

Solution:

	Req. 1




			1-30	31-60	61-90	Over 90	Total
			days	days	days	days	balance

	Est. % uncollectible		x .005	x .05	x .11	x .50
	Bal. in Allow. for Doubtful Accounts should be
	Bal. in Allow. for Doubtful Accounts should be		$ 0	$ 0	$ 0	$ 0	$ -
	Current balance
	Amount needed in adj. entry

	Req. 2
	Journal
	DATE	ACCOUNT TITLES AND EXPLANATION				DEBIT	CREDIT
	Dec. 31
							-



		Allowance for Doubtful Accounts


			Bal.



	Req. 3
	BALANCE SHEET
	Current assets:
		Cash					$
		Short-term investments
		Accounts receivable, net of allowance
		for doubtful accounts of $					*
	Or
	*Another way to report accounts receivable is
		Accounts receivable
		Less: Allowance for doubtful accounts

emeraldsnail514

ACC 101 Lecture 11: Ch 7 and 8_

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