1) Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

A) At the end of June, bad debt expense is estimated to be $13,200.

B)In July, customer balances are written off in the amount of $6,600.

2) Assume Simple Co. had credit sales of $248,000 and cost of goods sold of $148,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $230.

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

3)Assume that Simple Co. had credit sales of $243,000 and cost of goods sold of $143,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2,300. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $180.

What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

4) Assume that Simple Co. had credit sales of $266,000 and cost of goods sold of $158,000 for the period. It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,200 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $330.

Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

4b)Which of these methods is required by GAAP?

a) Aging of accounts receivables

b)Percentage of credit sales

c)Either the percentage of credit sales or aging of accounts receivables

5.)EcRoom Equipment Company received an $12,000, six-month, 7 percent note to settle an $12,000 unpaid balance owed by a customer.

A. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.

B.RecRoom adjusts its records for interest earned to its December 31 year-end.

C.RecRoom receives the interest on the note's maturity date.

D.RecRoom receives the principal on the note's maturity date.

6.) Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $19,750. The account had an unadjusted credit balance of $10,000 at that time.

Required:

Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a.The appropriate bad debt adjustment was recorded.

b.Later, an account receivable for $1,000 was determined to be uncollectible and was written off.

7.)

Prior to recording the following, Elite Electronics, Inc., had a credit balance of $2,000 in its Allowance for Doubtful Accounts.

Required:

Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. On August 31, a customer balance for $300 from a prior year was determined to be uncollectible and was written off.
2. On December 15, the customer balance for $300 written off on August 31 was collected in full.

8.)Young and Old Corporation (YOC) uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days are considered young and have a 5% uncollectible rate. Accounts more than 60 days are considered old and have a 40% uncollectible rate.

Required:

1. If YOC has $100,000 of young accounts and $400,000 of old accounts, how much should be reported in the Allowance for Doubtful Accounts?

2. If YOCs Allowance for Doubtful Accounts currently has an unadjusted credit balance of $40,000, how much should be credited to the account?

3. If YOCs Allowance for Doubtful Accounts has an unadjusted debit balance of $5,000, how much should be credited to the account

9.)Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $100,000 and estimated that of 1 percent of those sales would be uncollectible.

Required:

1. Prepare the November adjusting entry for bad debts.

2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $89,000, aged as follows: (1) 130 days old, $75,000; (2) 3190 days old, $10,000; and (3) more than 90 days old, $4,000. The average rate of uncollectibility for each age group is estimated to be (1) 10 percent, (2) 20 percent, and (3) 40 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts.

3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,600 credit balance at December 31. Prepare the December 31 adjusting entry.

4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet

10.)The following transactions took place for Smart Solutions Inc.

		2017
a.		July		1		Loaned $70,000 to an employee of the company and received back a one-year, 10 percent note.
b.		Dec.		31		Accrued interest on the note.
		2018
c.		July		1		Received interest on the note. (No interest has been recorded since December 31.)
d.		July		1		Received principal on the note.

Required:

Prepare the journal entries that Smart Solutions Inc. would record for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

11.)FedEx Corporation reported the following rounded amounts (in millions):

	2016				2015
Accounts Receivable	$	7,430			$	5,905
Allowance for Doubtful Accounts		(180	)			(185	)
Accounts Receivable, Net of Allowance	$	7,250			$	5,720
Net Sales (assume all on credit)	$	50,370			$	47,450

Required:

1. Determine the receivables turnover ratio and days to collect for 2016. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 1 decimal place.)

2.)Do the measures calculated in requirement 1 represent an improvement (or deterioration) in receivables turnover, compared to 2015 when the turnover was 8.5?

A. Improvement

B. Decline