ACC 311 quiz 6 - $500,000 Accounts receivable, 1/1/2004...

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ACC 311 Fall 2006 Quiz #6 10/20/2006 Name: KEY (25 total points) Class Time: 1. Dell reported the following information about sales revenue and accounts receivable: Current Previous Year Year Accounts receivable, net of allowance of $260 and 240 5,200 5,130 Net revenues 37,000 32,200 According to its Form 10-K, Dell recorded bad debt expense of $55 and did not reinstate any previously written-off accounts during the current year. Use T-Accounts to solve for the following amounts: a. Calculate the amount of bad debts written off during the year ? (3 points) b. Prepare the journal entry to record bad debts written off during the year. (2 points) c. Based on your answer in (a), solve for cash collected from customers for the current year assuming that all Dell’s sales during the period were on account (5 points)
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2. Longhorn Corp. provided the following information : Net Sales during the year, 2004 (all sales on credit)
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Unformatted text preview: $500,000 Accounts receivable, 1/1/2004 250,000 Accounts receivable, 12/31/2004 320,000 Allowance for Uncollectible accounts, 1/1/2004 14,000 Write-off of specific accounts during 2004 1,600 Assuming management determines that based on past experience, 1% of net credit sales are estimated to be uncollectible, calculate: a. Prepare the journal entry to record bad debt expense for 2004 (2 points) b. The Balance in the allowance for uncollectible accounts on 12/31/200 (4 points) Assuming management performs an aging analysis of accounts receivable and determines that $21,000 of the accounts receivable at 12/31/2004 are estimated to be uncollectible, calculate: a. The bad debt expense for 2004 (3 points) b. The Balance in the allowance for uncollectible accounts on 12/31/2004 (2 points) c. Net realizable value of accounts receivable on 12/31/2004 (2 points)...
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ACC 311 quiz 6 - $500,000 Accounts receivable, 1/1/2004...

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