Question

Yates Company's records provide the following information concerning certain account balances and changes in these account...

Yates Company's records provide the following information concerning certain account balances and changes in these account balances during the current year. Transaction information is missing from each item below.

Prepare the entry to record the missing information for each account. (Consider each independently.)

1.    Accounts Receivable: Jan. 1, balance $41,000, Dec. 31, balance $55,000, uncollectible accounts written off during the year, $6,000; accounts receivable collected during the year, $150,000. Prepare the entry to record sales revenue.

2.    Allowance for Doubtful Accounts: Jan. 1, balance $4,000, Dec. 31, balance $7,500, uncollectible accounts written off during the year, $22,000. Prepare the entry to record bad debt expense.

3.    Accounts Payable: Jan. 1, balance $25,000, Dec. 31, balance $57,000, purchases on account for the year, $150,000. Prepare the entry to record payments on account.

4.    Interest Receivable: Jan. 1 accrued, $3,000, Dec. 31 accrued, $2,100, recognized for the year, $42,500. Prepare the entry to record cash interest received.

Homework Answers

Answer #1

Journal Entries

1.

General Journal Debit Credit
Account Receivable $170,000
         Sales $170,000

2.

General Journal Debit Credit
Bad Debts Expense $25500
         Allowance for Doubtful Accounts $25500

3.

General Journal Debit Credit
Accounts Payable $118000
          Cash $118000

4.

General Journal Debit Credit
Cash $43400
      Interest Receivable $43400
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