{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chap009 Solution Manual(1)

9 16 236000 20700 174002 305000 22900 207002 chapter

Info icon This preview shows pages 16–21. Sign up to view the full content.

View Full Document Right Arrow Icon
9-16 $236,000 ($20,700 + $17,400)/2 $305,000 ($22,900 + $20,700)/2
Image of page 16

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 Cost of Goods Sold ................................................. 500 Merchandise Inventory ...................................... 500 To record cost of sales. 5 Cash ....................................................................... 5,723 Credit card expense* ............................................ 177 Sales ................................................................. 5,900 To record credit card sales less fee. *($5,900 x .03) Cost of Goods Sold ................................................. 3,200 Merchandise Inventory ...................................... 3,200 To record cost of sales. 6 Accounts Receivable—Access ............................ 4,704 Credit card expense* ............................................ 96 Sales ................................................................. 4,800 To record credit card sales less fee. *($4,800 x .02) Cost of Goods Sold ................................................. 2,800 Merchandise Inventory ...................................... 2,800 To record cost of sales. 8 Accounts Receivable—Access ............................ 3,136 Credit card expense* ............................................ 64 Sales ................................................................. 3,200 To record credit card sales less fee. *($3,200 x .02) Cost of Goods Sold ................................................. 1,900 Merchandise Inventory ...................................... 1,900 To record cost of sales. 10 No journal entry required. 13 Allowance for Doubtful Accounts ........................ 329 Accounts Receivable—N. Wells ..................... 329 To write off account due. 17 Cash .......................................................................... 7,840 Accounts Receivable—Access ......................... 7,840 To record cash received from credit card co. 18 Cash .......................................................................... 735 Sales Discounts* ...................................................... 15 Accounts Receivable—A. Cianci ...................... 750 To record cash received less discount. *($750 x .02) 9-17
Image of page 17
Chapter 09 - Accounting for Receivables Problem 9-2A (35 minutes) 2010 a. Accounts Receivable ..................................... 1,803,750 Sales ......................................................... 1,803,750 To record sales on account. Cost of Goods Sold ....................................... 1,475,000 Merchandise Inventory ............................ 1,475,000 To record cost of sales. b. Allowance for Doubtful Accounts ................. 20,300 Accounts Receivable ............................... 20,300 To write off accounts. c. Cash ............................................................... 789,200 Accounts Receivable ............................... 789,200 To record cash received on account. d. Bad Debts Expense ....................................... 35,214 Allowance for Doubtful Accounts .......... 35,214 To record estimated bad debts. * * Beginning receivables ...................... $ 0 Credit sales ........................................ 1,803,750 Collections ......................................... (789,200) Write-offs ............................................ (20,300 ) Ending receivables ........................... 994,250 Percent uncollectible ........................ x 1.5% Required ending allowance ............. 14,914** Cr. Unadjusted balance .......................... 20,300 Dr. Adjustment to the allowance ........... $ 35,214 Cr. ** rounded to nearest dollar 9-18
Image of page 18

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 9-2A (Concluded) 2011 e. Accounts Receivable ........................................ 1,825,700 Sales ............................................................. 1,825,700 To record sales on account. Cost of Goods Sold ........................................... 1,450,000 Merchandise Inventory ................................ 1,450,000 To record cost of sales. f. Allowance for Doubtful Accounts .................... 28,800 Accounts Receivable .................................. 28,800 To record write-off of accounts. g. Cash ................................................................... 1,304,800 Accounts Receivable .................................. 1,304,800 To record cash received on account. h. Bad Debts Expense ........................................... 36,181 Allowance for Doubtful Accounts .............. 36,181 To record estimated bad debts. * * Beginning receivables ..................... $ 994,250 Credit sales ...................................... 1,825,700 Collections ....................................... (1,304,800) Write-offs .......................................... (28,800 ) Ending receivables .......................... 1,486,350 Percent uncollectible ...................... x 1.5% Required ending allowance ............ 22,295** Cr. Unadjusted balance Beginning (Cr.) ............................... $14,914 Write-offs (Dr.) ............................... 28,800 13,886 Dr. Adjustment to the allowance ......... $ 36,181 Cr. ** rounded to nearest dollar 9-19
Image of page 19
Chapter 09 - Accounting for Receivables Problem 9-3A (35 minutes) Part 1 a. Expense is 2% of credit sales: Dec. 31 Bad Debts Expense .................................. 70,680 Allowance for Doubtful Accounts ...... 70,680 To record estimated bad debts [$3,534,000 x .02]. b. Expense is 1% of total sales: Dec. 31 Bad Debts Expense .................................. 53,378 Allowance for Doubtful Accounts ...... 53,378 To record estimated bad debts [($1,803,750 + $3,534,000) x .01]. c. Allowance is 5% of accounts receivable: Dec. 31 Bad Debts Expense .................................. 69,255 Allowance for Doubtful Accounts ...... 69,255 To record estimated bad debts. * * Unadjusted balance .............................. $15,750 debit Estimated balance ($1,070,100 x 5%).. 53,505 credit Required adjustment ............................ $69,255 credit Part 2 Current assets: Accounts receivable ..................................... $1,070,100 Less allowance for doubtful accounts ........ (54,930 )* $1,015,170 Or : Accounts receivable (net of $54,930* uncollectible accounts) .............................. $1,015,170 * Adjustment to the allowance ............... $70,680
Image of page 20

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

View Full Document Right Arrow Icon
Image of page 21
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