A company record the sales return for my credit customer indicate how this transaction would affect assets stockholders equity in revenues
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Debit Credit Cash $ 24,300 Accounts Receivable 13,800 Allowance for Uncollectible Accounts $ 1,200 Supplies 2,700 Notes Receivable (68, due in 2 years) 22.000 Land 7,200 Accounts Payable 8.200 Common Stock 98,000 Retained Earnings 32.600 Totals $140,000 $140,000 During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $37,100. January 6 Provide services to customers on account, $74,400. January 15 Weite oft accounts receivable as uncollectible, $1,000. January 20 Pay cash for salaries, $31,600. January 22 Receive cash on accounts receivable, $72,000. January 25 Pay cash on accounts payable, $5,700. January 30 Pay cash for utilities during January, $13,900. The following information is available on January 31, 2021 a. The company estimates the amount of their bad debt expense and uncollectible accounts at the end of each month. Out of the total accounts receivable shown on the General Ledger (See General Ledger Tab for total A/R balance) on January 31, the company determines $5,200 is past due, and 20% of these past due amounts are estimated to be uncollectible (Hint multiply the percentage by the $ amount of the A/R that is past due). The remaining accounts receivable balance on January 31 is current (total A/R minus amount that is past due), and 5% of the current balance is estimated to be uncollectible. Hint for a.) 1.) Calculate the amount that is estimated to be uncollectible for the past due A/R 0% past due A/R balance) ii) Calculate the amount that is estimated to be uncollectible for the current balance of A/R (% current balance of A/R) II.) Add these two amounts together ( + ii.) and this your target balance (new ending balance) for the Allowance for Uncollectible Account. Subtract the current balance in Allowance account (See General Ledger Tab for current balance) from this new target balance to calculate the amount that will be recorded into bad debt expense and the allowance account. IV) Watch video tutorial on this subject: https://vimeo.com/cdivideo/review/254531867/7c9cc2a218 a. Supplies at the end of January total $800. b. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. c. Unpaid salaries at the end of January are $33,700. January 15 Write off accounts receivable as uncollectible, $1,000. January 20 Pay cash for salaries, $31,600. January 22 Receive cash on accounts receivable, $72,000. January 25 Pay cash on accounts payable, S5, 700. January 30 Pay cash for utilities during January, $13,900. The following information is available on January 31, 2021. a. The company estimates the amount of their bad debt expense and uncollectible accounts at the end of each month. Out of the total accounts receivable shown on the General Ledger (See General Ledger Tab for total A/R balance) on January 31, the company determines $5,200 is past due, and 20% of these past due amounts are estimated to be uncollectible (Hint: multiply the percentage by the $ amount of the A/R that is past due). The remaining accounts receivable balance on January 31 is current (total A/R minus amount that is past due), and 5% of the current balance is estimated to be uncollectible. Hint for a.) 1.) Calculate the amount that is estimated to be uncollectible for the past due A/R (% past due A/R balance). ii.) Calculate the amount that is estimated to be uncollectible for the current balance of A/R (% current balance of A/R) iii.) Add these two amounts together (1. + II.) and this your target balance (new ending balance) for the Allowance for Uncollectible Account. Subtract the curyent balance in Allowance account (See General Ledger Tab for current balance) from this new target balance to calculate the amount that will be recorded into bad debt expense and the allowance account. iv.) Watch video tutorial on this subject: https://vimeo.com/cdivideo/review/254531867/7c9cc20218 a. Supplies at the end of January total $800. b. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31. c. Unpaid salaries at the end of January are $33,700. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-7). Review the "General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal tab (these are shown as items 8-11). 3. Review the adjusted Trial Balance as of January 31, 2021, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended January 31, 2021, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of January 31, 2021 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab (these are shown as items 12 and 13). General Journal >
