Quiz 5_CH6_Solution

Quiz 5_CH6_Solution - 2 of sales Bad Debt Expense 3,400...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Name__________ SOLUTION ______________________ Recitation _________________ __ MGA 201: FALL 2008 QUIZ #5: Chapter 6 Temple Systems, Inc. has the following select information related to their operating year January 1 – December 31, 2008: a. Accounts Receivable, January 1, 2008 balance $ 56,000 b. Allowance for Bad Debts, December 31, 2008 (unadjusted credit balance) $ 2,400 c. Sales (all on credit) $170,000 d. Cash received (i.e., collected) from customers on account $160,500 1. Make the necessary journal entries to record the sales event in c. and customer cash collections in d.: c. Accounts Receivable 170,000 Sales 170,000 d. Cash 160,500 Accounts Receivable 160,500 2. Make the necessary journal entry if the firm decides to estimate its Bad Debt Expense at
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 2% of sales: Bad Debt Expense 3,400 Allowance for Bad Debts 3,400 ($170,000 sales x .02 = $3,400; balance in Allowance for Bad Debts account is ignored) 3. Make the necessary journal entry if the firm decides to estimate its Bad Debt Expense using the accounts receivable aging method . The firm’s aging schedule estimated $5,500 of accounts receivable to be uncollectible. Bad Debt Expense 3,100 Allowance for Bad Debts 3,100 (Allowance for Bad Debts target balance = $5,500; $2,400 balance currently exists in the account; difference is Bad Debt Expense adjustment of $3,100)...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern