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
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during...
Entries Related to Uncollectible Accounts The following transactions were completed by The Wild Trout Gallery during the current fiscal year ended December 31: Jan. 19. Reinstated the account of Arlene Gurley, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,145 cash in full payment of Arlene’s account. Apr. 3. Wrote off the $12,290 balance owed by Premier GS Co., which is bankrupt. July 16. Received 40% of the $22,100 balance owed by Hayden...
A company reported the following items for 2013: Accounts receivable balance, Jan 1, 2013                           &nbs
A company reported the following items for 2013: Accounts receivable balance, Jan 1, 2013                                          $80,000 Allowance for uncollectible accounts balance, Jan. 1, 2013 12,000 Total credit sales during 2013    400,000 Total cash collections on accounts receivable during 2013    360,000 Account written off during 2013                                                          15,000 The account balances shown above are normal balances. Experience indicates that 4% of the gross accounts receivable balance at the end of each year ultimately will be uncollectible OR 1.5% of credit sales....
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $220,000...
At the beginning of the current period, Sheridan Company had balances in Accounts Receivable of $220,000 and in Allowance for Doubtful Accounts of $13,000 (credit). During the period, it had net credit sales of $703,000 and collections of $553,000. It wrote off as uncollectible accounts receivable of $6,500. However, a $4,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $21,000 at the end of the period. (a)...
At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800...
At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800 and in Allowance for Doubtful Accounts of $9,510 (credit). During the period, it had credit sales of $864,300 and collections of $687,610. It wrote off as uncollectible accounts receivable of $6,804. However, a $3,219 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,000 at the end of the period. (Omit cost...
Our Business is Required to Report the DEC-31 Balance Sheet and other Financial Statements using GAAP...
Our Business is Required to Report the DEC-31 Balance Sheet and other Financial Statements using GAAP Rules to the Bank. Our Business is reviewing the Accounts Receivable Account, using the Allowance Method. 1. Jan 1 The Beginning Balance in the Accounts Receivable Account was $300,000 2. Jan 1 The Beg Balance in the Allowance for Uncollectible Accounts was $30,000, Credit Balance. 3. During the Year Sales Revenues on Account were $3,000,000. 4. During the Year Cash Collected from Customers was...
Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for...
Johnsen Company earned service revenue on account of $300,000 and had cash collections of $130,000 for the year. During the year, uncollectible accounts receivable of $2,000 were written off. At December 31, an aging-of-accounts receivable schedule indicated that Johnsen Company will not collect $10,000 of accounts receivable. There was a credit balance of $2,100 in the Allowance for Uncollectible Accounts at the beginning of the year. Required: Journalize the entries to record (1) service revenue, (2) cash collections, (3)write-off of...
In general journal form, prepare journal entries for the following transactions: Dec. 31 At year-end, Chan...
In general journal form, prepare journal entries for the following transactions: Dec. 31 At year-end, Chan Company estimates its bad debt as .5% of its annual credit sles of $900,000. Feb. 1 Chan decides thst the $600 account of P. Park is uncollectible and writes the account off from the allowance account. June 5 Park unexpectedly pays the amount previously written off. Dec. 31 Chan Company decides to use the percent of accounts receivable method to estimate bad debts. On...
Aging Method On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and...
Aging Method On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $381,000 Allowance for Doubtful Accounts (a credit balance) 3,900 During 2019, Smith had $2,850,000 of credit sales, collected $2,905,000 of accounts receivable, and wrote off $3,850 of accounts receivable as uncollectible. At year end, Smith performs an aging of its accounts receivable balance and estimates that $3,800 will be uncollectible. Required: 1.  Calculate Smith's preadjustment balance in accounts receivable...
At the beginning of the current period, Bramble had balances in Accounts Receivable of $276,000 and...
At the beginning of the current period, Bramble had balances in Accounts Receivable of $276,000 and in Allowance for Doubtful Accounts of $8,000 (credit). During the period, it had net credit sales of $845,000 and collections of $802,750. It wrote off as uncollectible accounts receivable of $6,100. However, a $4,000 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $24,000 at the end of the period. (Omit cost...
On Jan 1 2020 ABC inc had the following accounts on its books Acc receivable $120,000...
On Jan 1 2020 ABC inc had the following accounts on its books Acc receivable $120,000 (debit) Allowance for uncollectible accounts $4,000 (credit) During this year credit sales were $600,000 and collection on account were $580,000 A. Prepare general journal entries for the following transactions that occurred during the year: 1. Wrote off A companies account $3400 2. Wrote off B Inc account $1200 3. B inc which is in bankruptcy paid $400 in final settlement of the account written...