Question
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 off in transaction 2. (this amount is not included in the $580,000 collections)
4. On dec 31 estimated the years bad debts expense at 1% of credit sales
B. Show how Accounts receivable and the allowance for uncollectible accounts would appear on the year end balance sheet
Homework Answers
Answer #1
Answer B: Allowance for uncollectible accounts would be deducted from Account receivable fro better representation in Balance sheet.
Not the answer you're looking for?
Similar Questions
Analyzing and Reporting Receivable Transactions and Uncollectible Accounts Using Percentage-of-Sales Method to Estimate Bad Debt Expense...
Analyzing and Reporting Receivable Transactions and
Uncollectible Accounts Using Percentage-of-Sales Method to Estimate
Bad Debt Expense
At the beginning of the year, Penman Company had the following
account balances.
Accounts receivable $213,600
Allowance for uncollectible accounts12,840
During the year, Penman’s credit sales were $1,204,800, and
collections on accounts receivable were $1,177,800. The following
additional transactions occurred during the year.
Feb. 17 Wrote off Bava’s account, $4,920.
May 28 Wrote off Reed’s account, $2,880.
Dec. 15 Wrote off Fischer’s account, $1,380....
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)...
Class Quest Company had the following balances as at January 1, 2016: Accounts Receivable $600,000
Class Quest Company had the following balances as at January 1,
2016:
Accounts Receivable
$600,000
Debit
Allowance for Doubtful Accounts
$32,000 Credit
During the fiscal year 2016 (Jan 1 to Dec 31 2016), the company
had the following transactions:
Total Sales
$7,200,000
(of which 40% represents cash sales).
Cash collected from credit customers
$3,000,000
Write-offs of uncollectible accounts
$22,000.
Required:If the company estimates that 1% of the credit
sales are uncollectible, what amount would the company record as
the bad...
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....
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts
receivable: accounts receivable balance at the beginning of the
year, $360,000; allowance for uncollectible accounts at the
beginning of the year, $25,000 (credit balance); credit sales
during the year, $1,250,000; accounts receivable written off during
the year, $16,000; cash collections from customers, $1,150,000.
Assuming the company estimates bad debts at an amount equal to 3%
of credit sales.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts
receivable: accounts receivable balance at the beginning of the
year, $450,000; allowance for uncollectible accounts at the
beginning of the year, $34,000 (credit balance); credit sales
during the year, $1,700,000; accounts receivable written off during
the year, $25,000; cash collections from customers, $1,850,000.
Assuming the company estimates bad debts at an amount equal to 3%
of credit sales.
1. Calculate bad debt expense for the year.
2. Calculate the year-end balance in...
On December 31, 2019, Mills Manufacturing Ltd. had a $173,000 balance in its Accounts Receivable and...
On December 31, 2019, Mills Manufacturing Ltd. had a $173,000
balance in its Accounts Receivable and a $9,800 balance in its
Allowance for Doubtful Accounts. During 2020, the company made
total sales of $902,000, of which $218,000 were cash sales. By the
end of the year, Mills had received payments of $598,000 from its
customers on account. The company also wrote off as uncollectible
$13,800 of its receivables when it learned that these customers had
declared bankruptcy. The company was...
At December 31, 2012, SPK Inc reported the following information on its balance sheet: Accounts Receivable...
At December 31, 2012, SPK Inc reported the following information
on its balance sheet:
Accounts Receivable 900,000
Allowance for Doubtful Accounts 54,000 (credit)
During 2013, the company had the following transactions related
to receivables:
Sales on Account 3,000,000
Collections on Account 2,850,000
Write-offs of uncollectible accounts 60,000
Recovery of previously written off accounts 12,000
A) Assume that bad debts are estimated to be 5% of year end
receivables, determine the Net Realizable Value (after adjustments)
of Accounts Receivable.
B) If...
The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...
The following information relates to a company’s accounts
receivable: accounts receivable balance at the beginning of the
year, $440,000; allowance for uncollectible accounts at the
beginning of the year, $33,000 (credit balance); credit sales
during the year, $1,650,000; accounts receivable written off during
the year, $24,000; cash collections from customers, $1,800,000.
Assuming the company estimates that future bad debts will equal 11%
of the year-end balance in accounts receivable.
1. Calculate the year-end balance in the
allowance for uncollectible accounts....
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...
The following information relates to a company’s accounts
receivable: gross accounts receivable balance at the beginning of
the year, $370,000; allowance for uncollectible accounts at the
beginning of the year, $26,000 (credit balance); credit sales
during the year, $1,300,000; accounts receivable written off during
the year, $17,000; cash collections from customers, $1,200,000.
Assuming the company estimates that future bad debts will equal 9%
of the year-end balance in accounts receivable.
1. Calculate bad debt expense for the year.
2. Calculate...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 6 minutes ago
asked 18 minutes ago
asked 21 minutes ago
asked 31 minutes ago
asked 58 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago