Documents about Doubtful Accounts
ch 8
Arizona, ACCT 200
Excerpt: ... Chapter 8 Suggested Practice Problems BRIEF EXERCISE 8-3 (a) Allowance for Doubtful Accounts . Accounts Receivable . (b) Accounts receivable Allowance for doubtful accounts Cash realizable value (1) Before Write-Off $700,000 28,000 $672,000 3,000 3,000 (2) After Write-Off $697,000 25,000 $672,000 BRIEF EXERCISE 8-8 (a) Bad Debts Expense . Allowance for Doubtful Accounts . 24,000 24,000 (b) Current assets Cash. Accounts receivable . $600,000 Less: Allowance for doubtful accounts . 24,000 Merchandise inventory . Prepaid expenses . $ 90,000 576,000 180,000 13,000 $859,000 (c) Receivables turnover ratio = $3,000,000 = 10 times $300,000 365 days = 36.5 days 10 Averag ...
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Lecture Notes March 27, 2009
Texas A&M, ACCT 315
Excerpt: ... Accounting 315 Lecture Notes March 27, 2009 A. Chapter 7 (First Edition) Chapter 8 (2nd Edition) Cash and Receivables 1. Receivables a. Balance sheet presentation of accounts receivable accounts receivable reported net of the allowance for doubtful accounts . In other words, what is expected to be collected rather than what is shown in the accounts receivable account in the general ledger. This amount is referred to as the Net Realizable Value of the receivables. As a result, the balance in the allowance for doubtful accounts is subtracted from the balance in the accounts receivable account. Recording receivables using the gross or net method The method most commonly used is the gross method. Under the gross method, the full amount of the receivable and sale is recorded at the point of sale. Sales discounts are recognized if payment is received within the discount period. The balance in the Sales discounts account is subtracted from sales to arrive at net sales. Thus, Sales Discounts is a contra accoun ...
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accounting
Texas State, ACC 2361
Excerpt: ... Mitchell Stefani Hw ch. 7 PA 2,3,4,5 PA 2) 1) *- Allowance for doubtful Accounts (xa) + beg bal. 298,959 write-offs 1,938,920 charged to costs and expenses 1,754,524 ending balance 114,563 2) a) bad debt expense (+e,-se) Allowance for doubtful accounts (+xa,-a) b) Allowance for doubtful accounts (-xa,+a) accounts receivable (-a) 1,938,920 1,938,920 1,938,920 1,938,920 3) Notes receivable would have decreased by 20,000 and net accounts would all be less because of the write off. Net income would would decrease because that is less assets that you are receiving. PA 3) Feb. 28, 2006 Note Receivable (+a) cash (-a) 31-Mar-06 interest receivable (+a) interest revenue June 30,2006 interest receivable (+a) interest revenue Aug. 31,2006 cash(+a) interest receivable (-a) 50,000 50,000 333.33 333.33 1000 1000 2000 2000 Sept. 30, 2006 interest receivable (+a) interest revenue Dec. 31, 2006 interest receivable (+a) interest revenue Feb. 28,2007 cash (+a) interest receivable (-a) cash (+a) note r ...
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chap08_student
UNC Wilmington, ACG 201
Excerpt: ... account is used. Accounts are written off when determined uncollectible as follows: Bad debt expense will show only actual losses. Accounts receivable will be reported at gross amount. 13 Direct Write-off Method Issue No attempt is made to match bad debts expense to sales revenue. 14 Allowance Method Uncollectible accounts receivable are estimated and matched against sales in the same accounting period in which the sales occurred. Uncollectible accounts receivable may be estimated using: Percentage of sales Aging of accounts receivable 15 Recording Estimated Uncollectibles Hampton Furniture has credit sales of $1,200,000, of which $200,000 remains uncollected. The credit manager estimates $12,000 will prove uncollectible. 16 Recording Estimated Uncollectibles Bad Debts Expense 12,000 Allowance for Doubtful Accounts Accounts Receivable 12,000 Allowance for Doubtful Accounts 17 Cash (Net) Realizable Value. Is t ...
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8-1a
Harold Washington College - CCC, BUS 181
Excerpt: ... 8-1A 5-Jul Cash Allowance for Doubtful Accounts Accounts Receivable 21-Sep Accounts Receivable Allowance for Doubtful Accounts Cash Accounts Receivable 19-Oct Allowance for Doubtful Accounts Accounts Receivable 6-Nov Accounts Receivable Allowance for Doubtful Accounts Cash Accounts Receivable 31-Dec Allowance for Doubtful Accounts A/R - marine co. A/R - kommens co. A/R - helena distributers A/R - ed ballantyne 14700 6300 21000 4875 4875 4875 4875 6275 6275 4750 4750 4750 4750 13000 2150 3600 5500 750 3 4 815240-16750=798490 7126000*.0025=17815 Bad Debt Allowance for Doubtful Accounts 815240-a/r 17815 17815 ...
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imp-sol
Auburn, AC 312
Excerpt: ... AC 312 Washington Company 1 Impairment of Debt Quiz Solution Winter 1999 07/01/1998 Notes Receivable 600,000 Discount on Notes Receivable Land-amount not graded as it was accidently left out of the problem 149,211 06/30/1999 Discount on Notes Receivable Interest Revenue 2 07/01/1999 Bad Debts Expense Allowance for Doubtful Accounts 06/30/2000 Discount on Notes Receivable Allowance for Doubtful Accounts Interest Revenue 3 06/30/2001 Discount on Notes Receivable Allowance for Doubtful Accounts Interest Revenue Cash Allowance for Doubtful Accounts Notes Receivable Bad Debts Expense Adams Company 1 07/01/1998 Land Discount on Notes Payable Notes Payable 06/30/1999 Interest Expense Discount on Notes Payable 06/30/2000 Interest Expense Discount on Notes Payable 06/30/2001 Interest Expense Discount on Notes Payable Notes Payable Gain on Settlement of Note Cash 45,079 45,079 82,645 82,645 49,587 8,265 41,322 54,545 9,090 45,455 510,000 100,000 600,000 10,000 450,789 149,211 600,000 45,079 45,079 49,587 49,587 ...
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achivmt_test_answ8
Saint Petersburg, ACG 2021
Excerpt: ... 9th Edition Financial and Managerial Accounting Warren/Reeve A Answers For Scoring 0. _ factor Chapter Test 8A FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY INSTRUCTIONS: Answer the following questions or complete the statements by writing the appropriate words or amounts in the Answers column. 0. The party purchasing a company's receivables is called a(n) . 1. Allowance for Doubtful Accounts has a credit balance of $3,000 at the end of the year, before adjustments. Sales for the year amounted to $1,950,000, and sales returns and allowances amounted to $50,000. If uncollectible accounts expense is estimated at 1% of net sales, the amount of the appropriate adjusting entry will be . 2. If, instead of a percentage of net sales, the adjusting entry in Question 1 is based on an analysis of receivables that indicates doubtful accounts of $10,500, the amount of the adjustment will be . 3. Allowance for Doubtful Accounts ...
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Book1
Grand Valley State, ACC 212
Excerpt: ... Payless Shoes Condensed Balance Sheets (adapted) December 31, 20X2 Assets Current Assets Cash and cash equivalents Short-term investments Trade receivables Prepaid expenses and other current assets Long-term investments Property, net Other assests Total assets Liabilities and Stockholder's equity Current Liabilities Notes payable and currentmaturities of long-term debt Accounts payable Income taxes payable Unearned revenues Other current liabilities Total current liabilites Long-term debt Other long-term liabilities Stockholders' equity Total liabilities and stockholders' equity Accounts receivable Sales revenue Credit sales a) Allowance for Uncollectible Accounts Doubtful Account expense b) Doubtful Accounts expense Uncollectible Accounts 600 1600 900 3000 137,000 950,000 600,000 ...
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Bonus 3
UConn, ACCT 131
Excerpt: ... TO: Richard Kochanek FROM: Brittany-Ann Mac Allister 1586296 1. Bad Debts Expense 8100 Allowance for Doubtful Accounts 2. Bad Debts Expense 8700 Allowance for Doubtful Accounts 3. 291,000 4. Allowance for Doubtful Accounts 800 Accounts Receivable 5. 291,000 6. 13,000 7. 8,500 8. 6,000 9. 5,000 10. 7,125 8100 8700 800 ...
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hmwk_ch8
Saint Petersburg, ACG 2021
Excerpt: ... . Allowance for Doubtful Accounts . Accounts Receivable-Manning Wingard . 30 Accounts Receivable-Manning Wingard. Allowance for Doubtful Accounts . 30 Cash . Accounts Receivable-Manning Wingard . 750 2,000 2,750 2,000 2,000 2,000 2,000 June PE 82B Aug. 7 Cash . Allowance for Doubtful Accounts . Accounts Receivable-Roosevelt McLair. 175 400 575 1 Nov. 23 Accounts Receivable-Roosevelt McLair . Allowance for Doubtful Accounts . 23 Cash . Accounts Receivable-Roosevelt McLair. 400 400 400 400 PE 83A 1. $7,000 ($2,800,000 0.0025) Adjusted Balance $500,000 11,000 7,000 $489,000 2. Accounts Receivable . Allowance for Doubtful Accoun ...
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impair
Auburn, AC 312
Excerpt: ... Schedule of Interest and Discount Amortization (after impairment) Community Bank Date 12/31/00 12/31/01 12/31/02 12/31/03 Interest Received Interest Revenue/ Discount Amortized (10%) $22,540 24,794 27,270 Unamortized Discount $74,604 52,064 27,270 0 Carrying Value $225,396 247,936 272,730 300,000 $0 0 0 In subsequent periods, Community Bank records interest revenue on the note based on the new carrying value amount of $225,396. The table above shows the computation of the amortization of the discount and the annual increase in the carrying amount. On December 31, 2001, Community Bank records interest revenue for the year of $22,540 ($225,396 x 10%) as shown in the schedule above. However, the discount amortization of $37,566 ($375,657 x 10%) on December 31, 2001 is based on the original terms of the loan as determined from Illustration 14A-3. The difference between interest that would have been earned under the original terms and the interest after impairment is added to the Allowance for Doubtful Accounts . ...
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Chapter 6 homework solutions
University of Texas, ACC 311
Excerpt: ... nciple, the allowance method records bad debt expense in the same period in which the credit was granted and the sale was made. Using the allowance method, bad debt expense is recognized in the period in which the sale related to the uncollectible account was recorded. The write-off of bad debts using the allowance method decreases the asset accounts receivable and the contra asset allowance for doubtful accounts by the same amount. As a consequence, (a) net income is unaffected and (b) accounts receivable, net, is unaffected. 2. 7. 8. 9. . EXERCISES E61. Sales revenue ($1,000 + $900 + $500) . Less: Sales discount ($1,000 collected from S. Green x 2%). Net sales . E66. Req. 1 WOLVERINE WORLD WIDE INC. Income Statement For the Year Ended $2,400 20 $2,380 Amount Sales of merchandise Cost of products sold Gross profit Selling and administrative expense Income from opera ...
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Lecture Notes March 25, 2009
Texas A&M, ACCT 315
Excerpt: ... Accounting 315 Lecture Notes March 25, 2009 A. B. Losses on long-term construction contracts Chapter 7 (First Edition) Chapter 8 (2nd Edition) Cash and Receivables 1. Receivables a. Balance sheet presentation of accounts receivable accounts receivable reported net of the allowance for doubtful accounts . In other words, what is expected to be collected rather than what is shown in the accounts receivable account in the general ledger. This amount is referred to as the Net Realizable Value of the receivables. As a result, the balance in the allowance for doubtful accounts is subtracted from the balance in the accounts receivable account. Recording receivables using the gross or net method The method most commonly used is the gross method. Under the gross method, the full amount of the receivable and sale is recorded at the point of sale. Sales discounts are recognized if payment is received within the discount period. The balance in the Sales discounts account is subtracted from sales to arrive at net s ...
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CHAPTER%208
New Mexico, MGT 202 MGT202
Excerpt: ... CHAPTER 8 Reporting and Analyzing Receivables ANSWERS TO QUESTIONS 1. Accounts receivable are amounts customers owe on account. They result from the sale of goods and services in the normal course of business operations (i.e., in trade). Notes receivable represent claims that are evidenced by formal instruments of credit. Other receivables include nontrade receivables such as interest receivable, loans to company officers, advances to employees, and income taxes refundable. The essential features of the allowance method of accounting for bad debts are: (1) Uncollectible accounts receivable are estimated and matched against sales in the same accounting period in which the sales occurred. (2) Estimated uncollectibles are debited to Bad Debts Expense and credited to Allowance for Doubtful Accounts through an adjusting entry at the end of each period. (3) Actual uncollectibles are debited to Allowance for Doubtful Accounts and credited to Accounts Receivable at the time the specific account is written off as un ...
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211c7m6
Ohio State, ACCT 211m
Excerpt: ... Introduction to Financial Accounting Chapter 7, Module 6 Slide 1 CHAPTER 1 MODULE Chapter 7 Module1 6 Chapter 7 Module 6 AMIS 211 Introduction to Financial Accounting Professor Marc Smith Hi everyone. Welcome back. Let's see if we can put our knowledge as to how to estimate bad debts to test. And, let's try a couple of examples. In this Module, let's work through Example #3 from the Web site problems. And, let's just read it together before we get started. Here is what it says: "XYZ Company had a $250,000 balance in its Accounts Receivable on December 31st, 2002. Additionally, they had a $2,100 Credit Balance in their Allowance for Doubtful Accounts at Year-End 2002 before the Adjustment (AJE) for bad debt expense. During 2002, XYZ Company reported Credit Sales of $800,000." AMIS 211 Professor Marc Smith 1 Chapter 7, Module 6 Introduction to Financial Accounting Required: Part A. "Let's go ahead and let's calculate the bad debt expense and the Net Realizable Value (NRV) of our Accounts Re ...
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Chapter_9
Purdue, HTM 141
Excerpt: ... nded time period. When a company grants direct credit to customers, it expects that some customers will not pay what they promised. The accounts of these customers are uncollectible accounts, commonly called bad debts. The total amount of uncollectible accounts is an expense of selling on credit. Uncollectible accounts expense (bad debt) Direct write-off method - accounts are written off when it is determined they are uncollectible - Bad debt expense 150 Accounts receivable 150 - Bad debt expense is closed at the end of the period - One difficulty with this method is matching revenues and expenses. Allowance methods better match revenues and expenses Percentage of Sales: Based on sales, an estimate is made of the amount that will be uncollectible and written off. Bad Debt Expense Allowance for doubtful accounts xxx xxx Allowance for doubtful accounts is a contra asset account. Regardless of the method used, the unpaid account is taken of the books Allowance for doubtful accounts Accounts Receivable x ...
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Study Sheet for Accounting Test 2
Iona, BUS 201
Excerpt: ... Expense Dr Bad Debts Expense Cr Accounts Receivable (To record write-off) 200 200 Allowance Method- this method of accounting for bad debts involves estimating uncollectible accounts at the end of each period. Cash (net) realizable value- Is the net amount of company expects to receive in cash. Dr Bad Debts Expense 12,000 12,000 Cr Allowance for Doubtful Accounts (To record estimate of uncollectible accounts) -Companies do not close Allowance for Doubtful Accounts at the end of the fiscal year Dr Allowance for Doubtful Accounts 500 500 Cr Accounts Receivable-R.A. Ware (Write-off of R.A Ware account) Dr Accounts Receivable-R.A Ware Cr Allowance for Doubtful Accounts 500 500 (To reverse write-off of R.A. Ware account) Dr Cash 500 500 Cr Accounts Receivable-R.A Ware (To record collection from R.A. Ware) Dr Bad Debts Expense 1,700 Cr Allowance for Doubtful Accounts 1,700 (To adjust allowance account to total estimated uncollectibles) Face Value of Note X An ...
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Balances
Arkansas, ACCT 3013
Excerpt: ... Account Number Description Balance 10100 Cash # 10200 Accounts Receivable # 10300 Allowance: Doubtful Accounts # 30100 Sales # 30200 Sales Returns and Allowances # 30300 Sales Discounts # ...
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ACCT Dec 4
Marist, ACCT 200
Excerpt: ... ACCT Professor Williams Chapter 7 Homework Page 316 PB7-1 A. 30,141 x .005 150.71 Dr Bad Debt Expense (E+ SE-) Cr Allowance for Doubtful Accounts (A-) To record bad debt expense B. Dr Bad Debts Expense (E+ SE-) Cr Allowance for Doubtful Accounts (A-) To record bad debt expense C. Dr Bad Debt Expense (E+ SE-) Cr Allowance for Doubtful Accounts (A-) To record bad debt expense D. Dr Allowance for Doubtful Accounts (+A) Cr Accounts Receivable (A-) To record uncollectible receivables 150.71 150.71 175 175 25 25 15 15 Page 319 C&DS7-5 1.2110 2. Dr Bad Debt Expense 2110 Cr Allowance for Doubtful Accounts 2110 To record bad debt expense 3. Net income will reduce to $13,110 4. The controllers way of using the again method is not logical to estimate bad debts since he is just throwing a number out there that he would like his company to receive, and this is not supposed to mathematically transfer to the allowance for doubtful accounts . 5. 5125 = bad debt expense 77400 -56560 - 5125 15715 - 5620 10095 ...
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Acct_211_Study_Guide_Exam_1
Penn State, ACCTG 211
Excerpt: ... Accounting 211 Study Guide Exam I (Chapters I, 2, 3, 4, 5, 8) 1. entity type 2. what is accounting 3. fields of accounting 4. transaction entry 5. identify accounting principle 6. record value 7. accounting equation 8. transaction effect on accounti ...
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Answers for Exam 2 Review Problems
SUNY Albany, ACC 211
Excerpt: ... Over and Short . Inventory . Office Supplies Expense . Entertainment Expense . Postage Expense . Cash . (To record expenses for October and to replenish the petty cash fund) 150 150 5 23 35 60 25 148 31 Chapter 8 9. a. Accounts Receivable Sales Cost of Goods Sold Merchandise Inventory Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold Cash Accounts Receivable Allowance for Doubtful Accounts Accounts Receivable Accounts Receivable Allowance for Doubtful Accounts Cash Accounts Receivable b. Bad Debt Expense Allowance for Doubtful Accounts c. $643,900 d. $30,000 38,100 38,100 1,420,000 1,420,000 1,015,000 1,015,000 100,000 100,000 71,450 71,450 1,250,000 1,250,000 35,000 35,000 5,000 5,000 ...
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Opt_Prob_Solutions_chap_6_Solutions
Cornell, HA 230
Excerpt: ... Chapter 6 Optional Problem Solutions E613. Req. 1 December 31, 2008-Adjusting entry: Bad debt expense (+E, SE). 3,650 Allowance for doubtful accounts (+XA, A). 3,650 To adjust for estimated bad debt expense for 2008 computed as follows: Estimated Estimated percentage amount Aged accounts receivable uncollectible uncollectible Not yet due $65,000 x 1% = $ 650 Up to 180 days past due 10,000 x 15% = 1,500 Over 180 days past due 4,000 x 40% = 1,600 Estimated balance in Allowance for Doubtful Accounts 3,750 Current balance in Allowance for Doubtful Accounts 100 Bad Debt Expense for the year $3,650 Req. 2 Balance sheet: Accounts receivable ($65,000 + $10,000 + $4,000) $79,000 Less allowance for doubtful accounts . 3,750 Accounts receivable, net of allowance for doubtful accounts . $75,250 E624. Req. 1 RUSSELL COMPANY Bank Reconciliation, September 30, 2006 Company's Books Ending balance per Cas ...
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211c7m7
Ohio State, ACCT 211m
Excerpt: ... redit Sales for the year. They tell us the Sales Returns and Allowances for the year. They tell us what Accounts Receivables were at the end of the year. They tell us the Allowance for Doubtful Accounts at January 1st-the beginning of the year-had a credit side balance. And then, they tell us about write-offs and recoveries that happened during the year. Part A says: "Let's assume Grandma Veazy's House of Fun is using the Net Credit Sales Method and estimates her bad debt expense to be 4% of Net Credit Sales." "Calculate the bad debt expense estimate and the Net Realizable Value (NRV)." Let's go ahead to the next slide and let's jump right into it. AMIS 211 Professor Marc Smith 2 Chapter 7, Module 7 Introduction to Financial Accounting Slide 2 Chapter 7 Module 7: Example #4, Part A Part A: Net Credit Sales Method = Net credit sales x % 1. Bad debt expense 500,000 x .04 = = NOT CORRECT (500,000 - 18,000) x .04 $19,280 Bad debt expense Bad debt expense Now, we know ...
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chap7m5
Ohio State, ACCT 211m
Excerpt: ... Introduction to Financial Accounting Chapter 7, Module 5 Slide 1 CHAPTER 1 MODULE Chapter 7 Module1 5 Chapter 7 Module 5 AMIS 211 Introduction to Financial Accounting Professor Marc Smith Hi everyone. Welcome back. Just as a refresher before we jump into the key point of this Module. Because I know that this is tough-this is not an easy topic. This tends to be one of the more challenging topics that we cover. You really want to keep in mind that your Allowance for Doubtful Accounts is keeping track of two (2) specific items: 1) On the increase-or credit side-it is keeping track of your bad debt expense estimates that you have made. 2) On the decrease-or debit side-it is keeping track of the actual write-offs that you have had. So, at any point in time, you can look at that account. If the balance is on the credit side, we have written off less than we had thought. If the balance is on the debit side, we have written off more than we had estimated that we would write-off. AMIS 211 Professor ...
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KA2e_SelfStudy_Ch08
Colorado, BCOR 2000
Excerpt: ... File:ch08,Chapter8:ReportingandAnalyzingReceivables MultipleChoice 1.KerseeCompanyonJune15sellsmerchandiseonaccounttoSooEngCo.for$1,000,terms2/10, n/30.OnJune20EngCo.returnsmerchandiseworth$300toKerseeCompany.OnJune24paymentis receivedfromEngCo.forth ...
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