Chap009 Solution Manual(1)

Dec 1 allowance for doubtful accounts 2414 accounts

Info icon This preview shows pages 23–28. Sign up to view the full content.

View Full Document Right Arrow Icon
Dec. 1 Allowance for Doubtful Accounts .................. 2,414 Accounts Receivable—J. Halaam ............ 2,414 To record write-off of account. Part 2 Analysis Component : When a business pledges its receivables as security for a loan and the loan is still outstanding at period-end, the business must disclose this information in notes to its financial statements. This is a requirement because the business has committed a portion of its assets to cover a specific portion of its liabilities, which means that if the business dishonors its obligations under the loan, the creditor can claim the amount of receivables identified in the pledge as collateral to cover the loan. This arrangement must be disclosed to satisfy the full-disclosure principle. 9-23
Image of page 23

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 09 - Accounting for Receivables PROBLEM SET B Problem 9-1B (30 minutes) Aug. 4 Accounts Receivable—Stacy Dalton ..................... 2,780 Sales ................................................................... 2,780 To record sales on credit. Cost of Goods Sold .................................................... 1,750 Merchandise Inventory ......................................... 1,750 To record cost of sales. 10 Cash .......................................................................... 3,151 Credit Card Expense* (rounded to nearest dollar) ........................................................................ 97 Sales ................................................................... 3,248 To record credit card sales less fee. *($3,248 x .03) Cost of Goods Sold .................................................... 2,456 Merchandise Inventory ......................................... 2,456 To record cost of sales. 11 Accounts Receivable—Aztec .................................. 1,543 Credit card expense* (rounded to nearest dollar) .. 32 Sales ................................................................... 1,575 To record credit card sales less fee. *($1,575 x .02) Cost of Goods Sold .................................................... 1,150 Merchandise Inventory ......................................... 1,150 To record cost of sales. 14 Cash ............................................................................ 2,724 Sales Discounts* (rounded to nearest dollar) .............. 56 Accounts Receivable—Stacy Dalton ................... 2,780 To record cash received less discount. *($2,780 x .02) 15 Accounts Receivable—Aztec ..................................... 2,901 Credit Card Expense* (rounded to nearest dollar) ........ 59 Sales ....................................................................... 2,960 To record credit card sales less fee. *($2,960 x .02) Cost of Goods Sold .................................................... 1,758 Merchandise Inventory ......................................... 1,758 To record cost of sales. 18 No journal entry required. 9-24
Image of page 24
Chapter 09 - Accounting for Receivables 22 Allowance for Doubtful Accounts ............................. 398 Accounts Receivable—Ness City ........................ 398 To write off account due. 25 Cash ............................................................................ 4,444 Accounts Receivable—Aztec ............................... 4,444 To record cash received from credit card co. 9-25
Image of page 25

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 09 - Accounting for Receivables Problem 9-2B (35 minutes) 2010 a. Accounts Receivable ..................................... 673,490 Sales ......................................................... 673,490 To record sales on account. Cost of Goods Sold ....................................... 500,000 Merchandise Inventory ............................ 500,000 To record cost of sales. b. Cash ............................................................... 437,250 Accounts Receivable ............................... 437,250 To record cash received on account. c. Allowance for Doubtful Accounts ................. 8,330 Accounts Receivable ............................... 8,330 To record write-off of accounts. d. Bad Debts Expense ....................................... 10,609 Allowance for Doubtful Accounts ........... 10,609 To record estimated bad debts. * *Beginning receivables .................... $ 0 Credit sales ...................................... 673,490 Collections ....................................... (437,250) Write-offs .......................................... (8,330 ) Ending receivables .......................... 227,910 Percent uncollectible ...................... x 1.0% Required ending allowance ............ 2,279** Cr. Unadjusted balance ......................... 8,330 Dr. Adjustment to the allowance ......... $ 10,609 Cr. ** Rounded to nearest dollar 9-26
Image of page 26
Chapter 09 - Accounting for Receivables Problem 9-2B (Concluded) 2011 e. Accounts Receivable ..................................... 930,100 Sales ......................................................... 930,100 To record sales on account. Cost of Goods Sold ....................................... 650,000 Merchandise Inventory ............................ 650,000 To record cost of sales.
Image of page 27

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 28
This is the end of the preview. Sign up to access the rest of the 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