C prepare the adjusting entry to record bad debts

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c. Prepare the adjusting entry to record bad debts expense using the estimate from part a . Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit. Exercise 7-8 Percent of receivables method P3 Refer to the information in Exercise 7-7 to complete the following requirements. a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a . Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a . Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 debit. Page 346 Exercise 7-9 Writing off receivables P2 Refer to the information in Exercise 7-7 to complete the following requirements. a. On February 1 of the next period, the company determined that $6,800 in customer accounts was uncollectible; specifically, $900 for Oakley Co. and $5,900 for Brookes Co. Prepare the journal entry to write of those two accounts. b. On June 5 of that next period, the company unexpectedly received a $900 payment on a customer account, Oakley Company, that had previously been written of in part a . Prepare the entries necessary to reinstate the account and to record the cash received.
Exercise 7-10 Estimating bad debts P3 At December 31, Folgeys Cofee Company reports the following results for its calendar year. Cash sales $900,000 Credit sales 300,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $125,000 debit Allowance for doubtful accounts 5,000 debit a. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be 3% of credit sales.
b. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be 1% of total sales. c. Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable. ( c ) $12,500 Exercise 7-11 Notes receivable transactions C2 Prepare journal entries for the following selected transactions of Danica Company for 2016. 2016 1. Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable. 2. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Check Dec. 31, Cr. Interest Revenue, $38 Exercise 7-12 Notes receivable transactions P4 Refer to the information in Exercise 7-11 and prepare the journal entries for the following selected transactions of Danica Company for 2017. 2017 1. Jan. 27 Received Lee’s payment for principal and interest on the note dated December 13.
Check Jan. 27, Dr. Cash, $9,595 2. Mar. 3 Accepted a $5,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company.

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