Question

Question 2 On 30 June, the end of its financial year, Burnside Consulting completed an age...

Question 2 On 30 June, the end of its financial year, Burnside Consulting completed an age analysis of its accounts receivable and determined that an allowance for doubtful debts of $12,320 was needed in order to report accounts receivable at their estimated collectable amount in the balance sheet. Ignore GST. Required (a) Prepare the entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a $1940 credit balance. (b) Prepare the entry to record bad debts expense assuming that the Allowance for Doubtful Debts account currently has a $820 debit balance. (c) Prepare the entry to write off an account receivable from G. Smith for $781. (d) Assume that before the entry recorded in requirement C above, the net amount of accounts receivable was $99 000. What is the net amount receivable from accounts receivable after recording the write-off of Smith’s account? Explain.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Pots-R-Us deals in ceramic pots and figurines. All sales are conducted on a credit basis and...
Pots-R-Us deals in ceramic pots and figurines. All sales are conducted on a credit basis and no cash discounts are given. Ignore GST. Ignore all journal narrations. The following information was extracted from the accounting records at 30 June 2019: Sales                                        $552,000 Sales returns and allowances     37,900 Cash collected                         319,120 Debts to be written off                 4,022 Required 1a)       Assume that Pots-R-Us uses the direct write-off method of accounting for bad debts. Prepare the general journal entry required...
The ledger of Whispering Winds Corp. at the end of the current year shows Accounts Receivable...
The ledger of Whispering Winds Corp. at the end of the current year shows Accounts Receivable $108,000; Sales Revenue $849,000; and Sales Returns and Allowances $24,500. (a) If Whispering Winds uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Whispering Winds determines that L. Dole’s $1,700 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial balance, journalize the adjusting entry at December...
Question 2 The ledger of Sheridan Company at the end of the current year shows Accounts...
Question 2 The ledger of Sheridan Company at the end of the current year shows Accounts Receivable $84,500; Credit Sales $756,230; and Sales Returns and Allowances $37,220. (a) If Sheridan Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sheridan Company determines that Matisse’s $893 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,107 in the trial balance, journalize the adjusting entry at December...
Q 5. At 31 July 2018, the trial balance of Odom Ltd has the following amounts...
Q 5. At 31 July 2018, the trial balance of Odom Ltd has the following amounts before adjustment:                                                                         Debits                   Credits                        Accounts Receivable                $350,000                       Allowance for Doubtful Debts                             $16,625                       Sales $715,250 Required: 1.     Prepare the adjusting entry at 31 July 2018 for bad debts expense assuming that the ageing schedule indicates that $18,025 of accounts receivable will be uncollectable. 2.     Repeat (1) assuming that instead of a credit...
The financial year for Peter Jones runs from 1 July to 30 June each year. The...
The financial year for Peter Jones runs from 1 July to 30 June each year. The following transactions occurred during the 2019 and 2020 financial year. Jones uses the allowance method to measure bad debts. Note 1: Ignore GST. Note 2: Narrations are not required Dates Transactions Financial year ending 30 June 2019 June 30 Jones expects the bad debts expense to be 3% of the credit sales figure of $150,000. (ENTRY REQUIRED) June 30 The bad debts expense account...
At the beginning of March, Paragon Limited, which records adjusting entries at the end of each...
At the beginning of March, Paragon Limited, which records adjusting entries at the end of each month, had an Accounts Receivable amount of $30,000 and an Allowance for Doubtful Accounts balance of $5,000. During March, the company had credit sales of $40,000 and collected $35,000 from customers. It also wrote off a certain amount of uncol- lectible receivables during the month and recorded a certain amount of bad debts expense at the end of the month. No accounts that were...
The following details were obtained from the accounting records of Cool Climate Consultants at the end...
The following details were obtained from the accounting records of Cool Climate Consultants at the end of the financial year. Cool Climate Consultants is registered for GST. Consulting fee owed to Cool Climate Consultants Allowance for doubtful debts Debts to be written off $517 000 $30 000 $10 010 (includes GST) (Includes GST) The firm requires an allowance for doubtful debts of 10% of outstanding fees at 30 June. (a) Prepare the appropriate general journal entries to record adjustment to...
For their fiscal year ended December 31, 2017, the Zurich Inc. had credit sales of $750,000....
For their fiscal year ended December 31, 2017, the Zurich Inc. had credit sales of $750,000. At year end, the unadjusted trial balance shows a credit balance of $1,958 in the Allowance for Doubtful Accounts, and $140,000 in Accounts Receivable. The credit manager prepared an aging schedule of accounts receivable and estimates that $5,200 will prove to be uncollectible. On March 4, 2018 the credit manager authorizes a write off of the $2,000 balance owed by Francis Ltd.. Instructions (a)    ...
At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment....
At December 31, 2016, the trial balance of Garvey Company contained the following amount before adjustment.                                                                                                                                            Debits          Credits          Accounts Receivable                   $ 500,000                            Allowance for Doubtful Accounts                         $     4,800                      Sales Revenue                                          2,400,000 Instructions: (a)  Prepare the adjusting entry at December 31, 2016, for bad debts expense assuming that the aging schedule indicates that $26,000 of accounts receivables will be uncollectible.. (b)  Repeat part (a), assuming that instead of a credit balance there is a $4,800 debit balance in the Allowance for Doubtful Accounts. (c)  During the next month, January 2017,...
The ledger of Sunland Company at the end of the current year shows Accounts Receivable $73,000,...
The ledger of Sunland Company at the end of the current year shows Accounts Receivable $73,000, Credit Sales $819,000, and Sales Returns and Allowances $42,400. Prepare journal entries for each separate scenario below. (a) If Sunland Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sunland Company determines that Matisse’s $1,100 balance is uncollectible. (b) If Allowance for Doubtful Accounts has a credit balance of $1,300 in the trial balance,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT