Allowance for Doubful Accounts 96000 d Sales Revenue 3700000 Returns Allowances

Allowance for doubful accounts 96000 d sales revenue

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Allowance for Doubful Accounts 96,000 (d) Sales Revenue 3,700,000 Returns & Allowances 50,000 Net Revenue 3,650,000 Accounts Receivable 12/31/16 $ 960,000 Less Allowances for Doubful Acct 80,000 Net Accounts Receivable 12/31/16 $ 880,000 Accounts Receivable 12/31/17 1,710,000 Less: Allowances for Doubtful Accounts 19,000 Less: Adjustment to Allowances for Doubtful Accounts 96,000 Net Accounts Receivable 12/31/17 1,595,000 Net Revenue 3,650,000 Average Accounts Receivable 1,237,500 Accounts Receivable Turnover 2.95
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Problem 9-3A, p. 435Journalize entries to record transactions related to bad debtsPresented below is an aging schedule for Halleran Company.Number of Days Past DueCustomerTotalNot yet Due1-3031-6061-90Over 90Anders$ 22,000 $ 10,000 $ 12,000 Blake40,000 $ 40,000 Coulson57,000 16,000 6,000 35,000 Deleon34,000 34,000 Others132,000 96,000 16,000 14,000 6,000 $ 285,000 $ 152,000 $ 32,000 $ 26,000 $ 35,000 $ 3%6%13%25%50%$ 38,610 $ 4,560 $ 1,920 $ 3,380 $ 8,750 $ At December 31, 2017, the unadjusted balance in Allowance for Doutful Accounts is a credit of $12,000.Instructions:(a) Journalize and post the adjusting entry for bad debts at December 31, 2017.(b) Journalize and post the allowance account the following events and transactions in the year 2018.(1) On March 31, a $1,000 customer balance originating in 2017 is judged uncollectible.Estimated Percentage UncollectibleTotal Estimated Bad Debts(2) On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31.( c) Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in the Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that that estimated bad debts will be $31,600. 40,000 20,000 (a) Dec. 31 Bad Debt Expense 26,610 Allowance for Doubtful Accounts 26,610 Bad Debt Expense Date Explanation Ref. Debit Credit Balance 2017 Dec. 31 Adjusting 26,610 26,610 Allowance for Doubtful Accounts Date Explanation Ref. Debit Credit Balance 2017 Dec. 31 Balance 12,000 31 Adjusting 26,610 38,610 2018 Mar. 31 1,000 37,610 May 31 1,000 38,610 2018 Mar. 31 (b) (1) Allowance for Doubtful Accounts 1,000 Accounts Receivable 1,000 May 31 (b) (2) Accounts Receivable 1,000 Allowance for Doubtful Accounts 1,000 May 31 Cash 1,000 Accounts Receivable 1,000 Dec. 31 (c) Bad Debt Expense 32,400 Allowance for Doubtful Accounts 32,400
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