Odotshock/Shutterstock$1,500UncollectibleKnowledge Check 01Cosmo Company reported credit sales of $345,000 for the calendar year in its first year of operations. At December 31, customersbuying on credit owed $35,000 to the company. Based on the experience of similar businesses, management estimates that $3,500of its accounts receivable will be uncollectible.Prepare the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in thedebit or credit columns. View transaction listJournal entry worksheet1first year of operations. At December 31, customers buying on credit owed$35,000 to the company. Based on the experience of similar businesses,management estimates that $3,500 of its accounts receivable will beuncollectible.Note: Enter debits before credits.DateDec. 31Record entryAccounts receivableAllowance for doubtful accountsBad debt expenseCashClear entryDebitCreditView general journal

Bad debt expenses are expenses of expected uncollectible that are likely to occur in the future.

Answered: ecember 31, customers buying on credit…

ecember 31, customers buying on credit owed sed on the experience of similar businesses, $3,500 of its accounts receivable will be

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 17E: Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of...

See similar textbooks

Similar questions

Monitoring of Receivables The Russ Fogler Company, a small manufacturer of cordless telephones, began operations on January 1. Its credit sales for the first 6 months of operations were as follows: Throughout this entire period, the firm’s credit customers maintained a constant payments pattern: 209b paid in the month of sale, 309b paid in the first month following the sale, and 509b paid in the second month following the sale. What was Fogler’s receivables balance at the end of March and at the end of June? Assume 90 days per calendar quarter. What were the average daily sales (ADS) and days sales outstanding (DSO) for the first quarter and for the second quarter? What were the cumulative ADS and DSO for the first half-year? Construct an aging schedule as of June 30. Use account ages of 0-30, 31-60, and 61-90 days. Construct the uncollected balances schedule for the second quarter as of June 30.
On March 24, MS Companys Accounts Receivable consisted of the following customer balances: S. Burton 310 A. Tangier 240 J. Holmes 504 F. Fullman 110 P. Molty 90 During the following week, MS made a sale of 104 to Molty and collected cash on account of 207 from Burton and 360 from Holmes. Prepare a schedule of accounts receivable for MS at March 31, 20--.
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Current Attempt in Progress Crane Company has the following accounts in its general ledger at July 31: Accounts Receivable $32,800 and Allowance for Doubtful Accounts $2,050. During October, the following transactions occurred. Oct. 15 Sold $13,100 of accounts receivable to Nelson Factors, Inc. who assesses a 4% finance charge. 25 Made sales of $800 on VISA credit cards. The credit card service charge is 3%. Journalize the transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit
Take me to the text Sleiger Spa has a net accounts receivable opening balance of $223,000 and and ending balance of $176,000. The total sales amount for the year is $758,000, of which 60% is on credit. Calculate the days' sales outstanding and the accounts receivable turnover. Do not enter dollar signs or commas in the input boxes. Round days sales outstanding to the nearest whole number. Days Sales Outstanding = days Round accounts receivable turnover to 2 decimal places. Accounts Receivable Turnover = Check times
Required Information The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 400,000 Credit sales $ 1,000,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 300,000 debit $ 3,600 debit 2. Bad debts are estimated to be 2% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets:
Accounts Receivable At the beginning of the current year, Nikka Company reported the following information:Accounts receivable P1,800,000Allowance for doubtful accounts 72,000The following summary transactions affecting accounts receivable occurred during the current year:Sales – all on account 2/10, 1/15, n/60 P8,935,000Cash received from customers 8,000,000The cash received from customers including the following:Customers paying within the 10 day discount period 4,410,000Customers paying within the 15 day discount period 2,475,000Recovery of accounts written off 15,000Customers paying beyond the discount period ?Accounts receivable written off as worthless 55,000Credit memorandum for sales return 30,000The entity follows the percentage of accounts receivable consistently for the allowance for doubtfulaccount.Required:a) Prepare all necessary entries related to the above transactions affecting the accountsreceivable. (Observe the correct way of journalizing, use appropriate account…
Q: What are the journal entries for the following transactions related to Uncollectable accounts? On January 31st, accounts receivable amount to Rs=10,000. On this date, the credit manager reviews the accounts receivable and estimates that approximately Rs=850 of these accounts will prove to be uncollectable. Assume that the customer (Ali enterprise) is gone out of business and Rs=300 account receivable from the customer is now worthless. Assume for example, that a past-due account receivable in the amount of Rs=150 from XYZ was written off on March 16, 2020. All of a sudden, XYZ pays the account in full. Record the journal entry.
Required information Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 80,000 Credit sales $ 200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 108,000 debit Allowance for doubtful accounts $ 1,100 debit 2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Assume the following information for Tamarisk Corp. Accounts receivable (beginning balance) $151,000 Allowance for doubtful accounts (beginning balance) 11,500 Net credit sales 950,000 Collections 907,000 Write-offs of accounts receivable 5,600 Collections of accounts previously written off 1,600 Uncollectible accounts are expected to be 8% of the ending balance in accounts receivable. Part 1 Prepare the entries to record sales and collections during the period. Account Titles and Explanation Debit Credit (To record sales on account) (To record collection of accounts receivable) Part 2 Prepare the entry to record the write-off of uncollectible accounts during the period. Account Titles and Explanation Debit Credit Part 3 Prepare the entries to record the recovery of the uncollectible account during the period. Account Titles and Explanation Debit Credit (To reverse write-off of accounts…
The following are excerpts from the financial statements of 2018 and 2019 of Mandela Corporation. 2019 2018 Sales $187,600 $195,000 Accounts Receivable (net): Beginning of Year 68,100 66,500 End of Year 60,200 68,100 A newly hired manager has started implementing new credit policies. Required: a. As a consultant, you are contracted to analyze Accounts Receivable Turnover and Number of Days’ Sales in Receivable and provide opinion as to whether Mandela’s credit policy changes are working b. What conclusions does your analysis suggest. Are the new credit policies working?
Required information Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 480,000 debit Allowance for doubtful accounts $ 5,800 debit 3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.