1.On September 30, an $18,000, 12%, 30-day note came due from Clarke Co.Which of the followingaccounts is NOT a possible debit entry?Allowance for Doubtful AccountsAccounts ReceivableCashNote Receivable<\/p>
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2.On December 31, 2020, Allowance for Doubtful Accounts has a credit balance of $1,075 afterall write-offs were recorded for 2020.Which statement is true?The company underestimated its bad debt expense in year 2020.The company overestimated its bad debt expense in year 2020.On December 31, 2020, the net realizable value of accounts receivable was zero.The company must be using the percent of sales method to estimate its bad debt expense.<\/p>
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3.Answer the three facts about the Allowance for Doubtful Accounts a<\/em>ccount.Account type:Financial statement:To increase:assetincome statementdebitcontra assetbalance sheetcreditexpenserevenuecontra revenue<\/p> <\/p> 4.Answer the three facts about the Note Receivable <\/em>account.Account type:Financial statement:To increase:assetincome statementdebitcontra assetbalance sheetcreditexpenserevenuecontra revenuePart 2 - Fill-in-the-blanks.<\/strong>Enter the correct amount for each question in the space provided.<\/p> <\/p> 5.After the adjusting entry is made to set up the estimate for uncollectible accounts, AccountsReceivable has a debit balance of $548,700, Note Receivable has a debit balance of $18,000,and Allowance for Doubtful Accounts has a credit balance of $21,900.What is the net realizablevalue of the Accounts Receivable?$<\/p> <\/p> 6.Your company accepted a 120-day, 6% note for $81,000 from Winter Company on account.On the maturity date, Winter Company still cannot pay, so you accept a new a 60-day, 10%note for the full amount due (principal and interest).How much cash will you receive ifWinter Company pays you in full on the maturity date of the second note?$<\/p> <\/p> 7.The allowance account before adjustment has a debit balance of $5,500.Bad debt expensefor the upcoming year is estimated to be 3% of net sales, which are $148,900.What is the amount of the adjusting entry to provide for doubtful accounts?$<\/p> <\/p> 8.The allowance account before adjustment has a credit balance of $2,000.An aging of the accountsin the customer ledger indicates estimated doubtful accounts of $49,800 for the upcoming year.What is the balance in the Allowance for Doubtful Accounts ledger after the adjusting entry is recorded?$<\/p> <\/p> 9.The allowance account before adjustment has a credit balance of $1,600.Bad debt expense for theupcoming year is estimated to be 2% of net sales, which are $331,000.What is the balance in the Allowance for Doubtful Accounts ledger after the adjusting entry is recorded?$Part 3 - Journal Entries.<\/strong>Enter the accounts and amounts to record each transaction.For #24 - 28, assume there are 30 days in each month and 360 days in each year.<\/strong><\/p> <\/p> 10.You accepted a 120-day, 8% note for $40,800 from Quinn Co. on account on March 1.DateAccount<\/strong>DebitCredit<\/strong>3\/1<\/p> <\/p> 11.You received the amount due from Quinn Co. for the note on March 1.DateAccount<\/strong>DebitCredit<\/strong>6\/30<\/p> <\/p> 12.Your company had previously accepted a 30-day, 6% note for $240,000 from Spring, Inc.on account on July 1.It is now July 31 and the note is due and Spring, Inc. dishonors the note.DateAccount<\/strong>DebitCredit<\/strong>7\/31<\/p> <\/p> 13.On August 31, you receive full payment from Spring, Inc. on the note dishonored on 7\/31plus a 20% interest penalty on the 7\/31 outstanding balance.DateAccount<\/strong>DebitCredit<\/strong>8\/31<\/p> <\/p> 14.You collect $800 of the $2,390 that Whitaker Co. owes you on account and write off the remainder.You use the direct write-off method for uncollectible customer accounts.DateAccount<\/strong>DebitCredit<\/strong>9\/9Transactions #29 - 33 below relate to one another.<\/strong> There is a ledger on the tab below called \"Ledgers\" if you choose to use it.It is not a graded part of this exam.<\/p> <\/p> 15.On December 31, 2019, Allowance for Doubtful Accounts has a credit balance of $3,800before the adjusting entry is recorded.Analysis of receivables indicates the estimatedamount of doubtful accounts is $54,500 for the upcoming year. Journalize the entry for theestimate on January 1, 2020.DateAccount<\/strong>DebitCredit<\/strong>1\/1\/20<\/p> <\/p> 16.On February 17, you write off the $46,900 that Outboard Motors Co. owes you on account.DateAccount<\/strong>DebitCredit<\/strong>2\/17\/20<\/p> <\/p> 17.On November 29, Outboard Motor Co. pays you $9,800 of the amount you had written off onFebruary 17.You reinstate the account.DateAccount<\/strong>DebitCredit<\/strong>11\/29\/20<\/p> <\/p> 18.On December 8, you write off the $18,500 that Kelly Company owes you on account.DateAccount<\/strong>DebitCredit<\/strong>12\/8\/20<\/p> <\/p> 19.Analysis of receivables indicates the estimated amount of doubtful accounts is $61,000 forthe upcoming year.Journalize the entry for the estimate on January 1, 2021.DateAccount<\/strong>DebitCredit<\/strong>1\/1\/21<\/p> <\/p> 20.How will you prepare for your final exam in ACCT 2101?<\/p>",
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"question_posted": "2024-06-28 05:31:13",
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