6:34410 @ 15% 4/7 7 value 12.00 points Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2012, accounts receivable were presented in the company's statement of financial position as follows: Accounts receivable from clients Less: Allowance for Impairment $ 3,100,000 80,000 During 2013, S160,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $15,000 were subsequently collected. Al the end of 2013, an aging of accounts receivable indicated a need for a $225,000 allowance to cover possible failure to collect the accounts currently outstanding Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end. 1. One entry to summarize all accounts written off against the Allowance for Impairment during 2013 2. Entries to record the $15,000 in accounts receivable that were subsequently collected. 3. The adjusting entry required at December 31, 2013, to increase the Allowance for Impairment to $225,000 a. Prepare the above general journal entries: (Omit the "S" sign in your response.) Date General Journal Debit Credit 2013 Var (Click to select) (Click to select) Var(Click to select) (Click to select) Var (Click to select) (Click to select) Dec 31 (Click to select) (Click to select) 1111 1111 6:34 410 @ 15% 8. value 9.00 points Pachel Corporation reports the following information pertaining to its accounts receivable Days Past Due Current 1-30 31-60 61-90 Over 90 $ 60,000 $ 40.000 $ 25,000 $ 12,000 $ 2.000 The company's credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above Current receivables outstanding Receivables 1-30 days past due Receivables 31-60 days past due Receivables 61-90 days past due Receivables over 90 days past due 2% 4 16 40 90 The company uses a statement of financial position approach to estimate credit losses a. Record the company's impairment loss of receivable, assuming it has a $1,400 credit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your response.) General Journal Debit Credit (Click to select) (Click to select) b. Record the company's impairment loss of receivable, assuming it has a $1.600 debit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "S" sign in your response.) General Journal Debit Credit (Click to select) (Click to select) 6:34 410 @ 15% Dynamic, Inc. had credit sales of $640,000 for March. Accounts receivable of $7,000 were determined to be worthless and were written off during March Accounts receivable total $512,000 at March 31. Management feels that based on past experience, approximately 3% of net credit sales will prove to be uncollectible 9. value 3.00 points Required Information Assuming Dynamic, Inc uses the income statement approach (an allowance method to account for uncollectible accounts, uncollectible accounts expense for March is $15,360 $22,360 $26,200 $19,200 2022 McGraw Hill Ed aw-Hill Education. All rights reserved
