Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-4 Please! Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo Corporation. The company reported the following rounded amounts

image text in transcribedimage text in transcribed

1-4 Please!

Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions): Credits Debits $1,100 Accounts Receivable Allowance for Doubtful Accounts Sales (assume all on credit) $ 28 18,100 Required: 1. Assume Rogala uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Rogala uses the aging of accounts receivable method and estimates that $71 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense. 3. Assume instead that Rogala's uses the aging of accounts receivable method and estimates that $71 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense assuming Rogala's unadjusted balance in Allowance for Doubtful Accounts at January 3, 2016 was a debit balance of $32. 4. If one of Rogala's customers declared bankruptcy, what journal entry would be used to write off its $20 balance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume Rogala uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.) Show less View transaction list Journal entry worksheet Record the entry for bad debt expenses under the percentage of credit sales method. Note: Enter debits before credits. General Journal Debit Credit Date January 03, 2016 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ISO 14000 EMS Audit Handbook

Authors: Greg Johnson

1st Edition

1574440691, 978-1574440690

More Books

Students also viewed these Accounting questions

Question

Describe how language reflects, builds on, and determines context?

Answered: 1 week ago