ACCT 2001 Study Guide - Midterm Guide: Financial Statement, Gross Margin, Bank Reconciliation

93 views6 pages

turquoisegnu128

15 Oct 2018

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

marooncat340 and 37157 others unlocked

ACCT 2001 Full Course Notes

Verified Note

67 documents

Document Summary

Sun corporation issued a 120-day note dated june 12. The maturity date of this note is: october 8, october 9, october 10, october 11, none of the above. Use the following data for the next 4 questions. At the end of january, the unadjusted trial balance of fred, inc. , included the following accounts: What is the amount of bad debts: refer to the above data. Fred ages the accounts receivable and determines the estimated uncollectible portion to be ,800. After the adjusting entry is made, the expense recognized in fred"s income statement for january: none of the above. ,800 net realizable value of fred"s accounts receivable in the january 31 balance sheet is: none of the above. What is the amount of bad debts expense recognized in fred"s income statement for january: none of the above. ,400 receivable in the january 31 balance sheet is: none of the above. Specific identification profit: average cost, none of the above.

Related Questions

The trial balance before adjustment of Risen Company reports the following balances:

	Dr.	Cr.
Accounts receivable	$300,000
Allowance for doubtful accounts		$5,000
Sales (all on credit)		1,700,000
Sales returns and allowances	80,000

nstructions

(a) Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be 6% of gross accounts receivable.

(b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $5,000 instead of a credit balance. How will this difference affect the journal entries in part (a)?

jadeclam532

Required information

Problem 9-2A Estimating and reporting bad debts LO P2, P3

[The following information applies to the questions displayed below.]

At December 31, 2017, Hawke Company reports the following results for its calendar year.


Cash sales	$	1,305,010
Credit sales		3,261,000

In addition, its unadjusted trial balance includes the following items.


Accounts receivable	$	988,083	debit
Allowance for doubtful accounts		16,930	debit

Problem 9-2A Part 1

Required:
1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions.

a. Bad debts are estimated to be 2% of credit sales.

b. Bad debts are estimated to be 1% of total sales.

c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31, 2017).

Problem 9-2A Part 2

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1a.

Problem 9-2A Part 3

3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1c.

ochretiger488

On December 31, the unadjusted trial balance of Leeâs CoffeeDistributor contains the following:

	Debit	Credit
Accounts Receivable	240,000
Allowance for Doubtful Accounts		3,000
Cash Sales		1,500,000
Credit Sales		950,000

The A/R subsidiary ledger yields the following aging [terms are1/10, n/30] and subsequent analysis:

Total	Current	1-30 days past due	31-60 days past due	61-90 days past due	More than 90 days past due
$240,000	110,000	60,000	30,000	10,000	30,000
Write-off percentage	1.50%	4.00%	7.00%	10.00%	25.00%
Estimated write-off

Assume that instead of the A/R aging method [% of receivablesapproach], Lee's Coffee Distributors uses the % of credit salesapproach with respect to the allowance method for bad debts, andthe prior 5 year history through December 31 of the current yearshows write-offs have averaged 1.5% of credit sales. Which one ofthe following statements is correct (true) as of December 31 of thecurrent yea

On December 31, the unadjusted trial balance of Leeâs CoffeeDistributor contains the following:

	Debit	Credit
Accounts Receivable	240,000
Allowance for Doubtful Accounts		3,000
Cash Sales		1,500,000
Credit Sales		950,000

The A/R subsidiary ledger yields the following aging [terms are1/10, n/30] and subsequent analysis:

Total	Current	1-30 days past due	31-60 days past due	61-90 days past due	More than 90 days past due
$240,000	110,000	60,000	30,000	10,000	30,000
Write-off percentage	1.50%	4.00%	7.00%	10.00%	25.00%
Estimated write-off

A. The net A/R reported on the balance sheet would be$225,750

B. The AJE made would include a debit to "bad debt expense" for$11,250

C. The write-off % of 1.5% used for the current year AJE issmaller than the write-off % used to make the prior year AJE.

D. The AJE made would be included as an "outflow of cash" in theoperating activities section of the statement of cash flows.

tantortoise158

ACCT 2001 Study Guide - Midterm Guide: Financial Statement, Gross Margin, Bank Reconciliation

ACCT 2001 Full Course Notes

Document Summary

Get access

Related Documents

ACCT 2001 Chapter Notes - Chapter 7: Accounts Payable, Mastercard, Subledger

ACCT 2001 Study Guide - Midterm Guide: Issued Shares, Gross Margin, Preferred Stock

ACCT 2001 Study Guide - Quiz Guide: Trial Balance

Related Questions