On February 28, Wildhorse Company had accounts receivable in the amount of $568,100 and Allowance for Doubtful Accounts had a credit balance of $2,782 before adjustment. Net credit sales for February amounted to $3,900,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $7,930 was determined to be uncollectible and written off. However, on March 31, Black received an inheritance and immediately paid her past due account in full. (a) Prepare the journal entries made by Wildhorse Company on the following dates: (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.) 1. 2. 3. February 28 March 10 March 31

On February 28, Wildhorse Company had accounts receivable in the amount of $568,100 and Allowance for Doubtful Accounts had a credit balance of $2,782 before adjustment. Net credit sales for February amounted to $3,900,000. The credit manager estimated that uncollectible accounts would amount to 5% of accounts receivable. On March 10, an accounts receivable from Kathy Black for $7,930 was determined to be uncollectible and written off. However, on March 31, Black received an inheritance and immediately paid her past due account in full. (a) Prepare the journal entries made by Wildhorse Company on the following dates: (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.) 1. 2. 3. February 28 March 10 March 31

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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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?
Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of 6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.
On June 30, Isner Inc.s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a balance of $550, but the accounts receivable subsidiary ledger shows total account balances of $850. The accounts receivable subsidiary ledger is shown here. Can you help find the mistake?
On February 28, kerly company had accounts receivable in the amount of $437000 and alowance doubtful accounts had a credit balanace of$2140 before adjustment . Net credit sale for February amounted to be $3000000. The credit manager estimated that uncollectible accounts expense would amount to 2% of accounts receivable at February 28 on march 10, an accounts receivable from Kathy black for $6100 was determined to be uncollectible and written of .however, on march 31, black received an inherent ancestors and immediately paid her past due account in full prepare the journal entries made by Keller company on the following date 1 February 28 2.march 10 3.march 31
On January 1, Dillon Company had a $3,100 credit balancein the Allowance for Doubtful Accounts. During the year,sales totaled $780,000, and $6,900 of accounts receivablewere written off as uncollectible. A December 31 aging of accounts receivable indicated the amount probably uncol-lectible to be $5,300. (No recoveries of accounts previously written off were made during the year.) Dillon’s financialstatements for the current year should include:a. Uncollectible accounts expense of $9,100.b. Uncollectible accounts expense of $5,300.c. Allowance for Doubtful Accounts with a credit balanceof $1,500.d. Allowance for Doubtful Accounts with a credit balanceof $8,400.
Information related to accounts receivable is given: Mobile Technology Ltd. reported an unadjusted balance of accounts receivable of $1,285,000 at 31 December 20X3, along with a credit balance in the allowance for doubtful accounts of $83,100 and an allowance for sales discounts of $6,000. At year-end, the company determined that an allowance of $12,500 for sales discounts was needed. It also decided that $53,400 of accounts receivable were uncollectible and should be written off. Of the remaining receivables, it was determined that 40% were current, and of the remaining net current balance, an allowance for doubtful accounts of 3% of the net balance was needed. The remaining 60% of outstanding accounts receivable were past due and an allowance for doubtful accounts of 10% of the outstanding balance was needed. Required: For each case above, show how net accounts receivable would be reported on the statement of financial position, and calculate bad debt expense for the year. (Round…