Helen.com uses the allowance method of accounting for bad debts. The company produced the following aging...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Helen.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. +A 31-60 $94,000 4% 3760 Number of Days Outstanding 61-90 $39,000 5% 91-120 Over 120 $18,000 8% LA $ 1950 $ 1440 $10,000 11% +A $ 1100 Numb Total 0-30 31-60 Accounts receivable $521,000 $360,000 $94,000 % uncollectible Estimated bad debts LA 11850 +A 1% 3600 4% +A $ 3760 +A $ Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,400 debit. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (d) The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. Helen.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. +A 31-60 $94,000 4% 3760 Number of Days Outstanding 61-90 $39,000 5% 91-120 Over 120 $18,000 8% LA $ 1950 $ 1440 $10,000 11% +A $ 1100 Numb Total 0-30 31-60 Accounts receivable $521,000 $360,000 $94,000 % uncollectible Estimated bad debts LA 11850 +A 1% 3600 4% +A $ 3760 +A $ Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,400 debit. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (d) The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2.
Expert Answer:
Answer rating: 100% (QA)
For the yearend adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable 1 Debit the Bad Debt Expense account for the total estimated bad debts Bad Debt Expense 11210 2 Credit the Allowance for Doubtful Accounts for the same amount Allowance for Doubtful Accounts 11210 For the journal entries necessary to 1 restore the account and 2 record the cash collection 1 To restore the specific account Debit the Allowance for Doubtful Accounts to reverse the previous writeoff Allowance for Doubtful Accounts 5400 Credit the Accounts Receivable to reinstate the account Accounts Receivable 5400 2 To record the cash collection Debit Cash for the amount collected Cash 5400 Credit Accounts Receivable to reduce the accounts receivable balance Accounts Receivable 5400 For the journal entry to write off the uncollectible account ... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these finance questions
-
Reynolds.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Instructions (a) Calculate the total estimated bad...
-
Rianna.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Instructions (a) Calculate the total estimated bad...
-
Sellmore.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end Instructions(a) Calculate the total estimated bad...
-
The condensed financial statements of Soule SpA for the years 2016 and 2017 are presented as follows. SOULE SpA Statements of Financial Position December 31 SOULE SpA Income Statements For the Years...
-
Describe when you would use each of the response styles and how you would know whether or not each was effective.
-
What is the difference between fraudulent financial reporting and misappropriation of assets?
-
A divisional manager is considering the following two machines, each of which has an initial cost of f800000 and an optimal use full if of four years, with an estimated scrap value of zero. The...
-
Buckeye Department Stores, Inc., operates a chain of department stores in Ohio. The companys organization chart appears below. Operating data for 20x5 follow. The following fixed expenses are...
-
What is the future value of $20,000 after 12 years 12 years earning 1.6% compounded monthly? Round to the nearest whole number.
-
The photo department of Santiago Company shows gross sales of $730,600 for chemical supplies and $934,900 for general office supplies. It has determined that chemical supplies cost $534,000 and that...
-
In the following linear equation, find the value of y when x = -2. Provide your answer below: y = y=2x+11
-
identify the key assertion at risk for each identified account for the retail food group limited (RFG) According to last financial year 2020 1- trade payable 2-revenue 3-property plant and equipment
-
What are the advantages or disadvantages of the four elements of the promotion mix
-
Advantages and disadvantages of four distribution strategieon nikes distribution strategy
-
In relation to the construction industry, what are some advantages of being a limited partner instead of a general partner? What are some of the disadvantages?
-
Consumption is $ trillion. (Round your response to two decimal places.) trillion. (Round your response to two decimal places.) Planned investment is $ Net exports are $ trillion. (Round your response...
-
The Strahler Stream Order System ranks streams based on the number of tributaries that have merged. It is a top-down system where rivers of the first order are the headwaters (aka outermost...
-
(a) Fixed costs are really variable. The more you produce, the less they become. Do you agree? Explain. (b) In the long term, all costs are variable. Explain with reference to the relevant range.
-
How can you identify semi-variable costs and separate them into the fixed and variable elements?
-
What is a semi-variable cost?
Study smarter with the SolutionInn App