acc201wa4excel - Student Name: Tom Baker Class: ACC201...

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Student Name: Tom Baker Class: ACC201 Problem 07-01 SWATHMORE CLOTHING CORPORATION General Journal Account Debit Credit Requirement 1: Monthly bad debt expense accrual summary. Bad Debt Expense 78,600 Allowance for uncollectible accounts 78,600 «- Correct! To record year 2011 accounts receivable write-offs. Allowance for uncollectible accounts 68,000 Accounts receivable 68,000 «- Correct! Requirement 2: Account Debit Credit Bad debt expense 4,300 Allowance for uncollectible accounts 4,300 «- Correct! Summary Age Group Percent Estimated 0-60 days Amount Uncollectible Allowance 61-90 days $430,000 4% $17,200 91-120 days 98,000 15% 14,700 Over 120 days 60,000 25% 15,000 Totals 55,000 40% 22,000 $643,000 $68,900 Correct! Correct! Allowance for uncollectible accounts analysis: Beginning balance $54,000 Add: Monthly bad debt accruals 78,600 Deduct: Write-offs (68,000) Balance before adjustments 64,600 Required allowance 68,900 Required year-end increase in $4,300 allowance Correct! Requirement 3: Bad debt expense for 2011: Monthly accruals $78,600 Year-end adjustment 4,300 Total $82,900 Correct! SWATHMORE CLOTHING CORPORATION Balance Sheet Current Assets: Accounts Receivable, net of allowance for uncollectible accounts $541,100 Try again!
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Given Data P07-01: SWATHMORE CLOTHING CORPORATION Accounts Receivable, 12/31/10 $574,000 Allowance for uncollectibles, 12/31/10 54,000 Credit sales, year 2011 2,620,000 Collections, year 2011 (2,483,000) Write-offs, year 2011 (68,000) Ending A/R balance at 12/31/11 $643,000 A/R aging at 12/31/2009: Percentage Age Group Amount Uncollectible 0-60 days $430,000 4% 61-91 days $98,000 15% 91-120 days $60,000 25% Over 120 days $55,000 40% Total $643,000 Bad debt estimate (percentage of 3% credit sales)
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Student Name: Tom Baker Class: ACC201 Problem 07-04 RAINTREE COSMETIC COMPANY General Journal Account Debit Credit Requirement 1: To record accounts receivable written off during the year 2011: Allowance for uncollectible accounts 35,000 Accounts receivable 35,000 «- Correct! To record collection of account receivable previously written off: Accounts receivable 3,000 Allowance for uncollectible accounts 3,000 «- Correct! Cash
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acc201wa4excel - Student Name: Tom Baker Class: ACC201...

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