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ACC 213 Assignment: Lab #6 for Chapter 7 Name Instructions: Fill in the yellow cells, using formulas/cell references wherever possible The terms are net 30
ACC 213 Assignment: Lab #6 for Chapter 7 | Name | ||||||||||
Instructions: Fill in the yellow cells, using formulas/cell references wherever possible | |||||||||||
The terms are net 30 days. | |||||||||||
Balance of A/R on 12/31/2019 | $55,400 | debit | |||||||||
Balance of Allowance for Doubtful Accounts on 12/31/2019 BEFORE adjusting the books | $700 | credit | |||||||||
A) | Net Realizable Value of Accounts Receivable BEFORE adjusting the books | ||||||||||
subsidiary ledger | |||||||||||
A. Abel | F. Fierman | ||||||||||
dr | cr | balance | dr | cr | balance | ||||||
12/14/19 | purchase | 8600 | 8600 | 10/5/19 | purchase | 2200 | 2200 | ||||
12/27/19 | paid | 2400 | 6200 | 11/20/19 | purchase | 2800 | 5000 | ||||
12/20/19 | purchase | 1500 | 6500 | ||||||||
B. Barber | |||||||||||
dr | cr | balance | G. Gaylord | ||||||||
11/15/19 | purchase | 4200 | 4200 | dr | cr | balance | |||||
12/5/19 | purchase | 3800 | 8000 | 9/22/19 | purchase | 800 | 800 | ||||
11/22/19 | purchase | 5,900 | 6700 | ||||||||
C. Curran | |||||||||||
dr | cr | balance | |||||||||
12/2/19 | purchase | 4500 | 4500 | H. Harris | |||||||
dr | cr | balance | |||||||||
D. Dapper | 12/29/19 | purchase | 5,500 | 5,500 | |||||||
dr | cr | balance | |||||||||
5/10/19 | purchase | 2100 | 2100 | I. Ireland | |||||||
dr | cr | balance | |||||||||
E. Elmore | 8/15/19 | purchase | 1600 | 1600 | |||||||
dr | cr | balance | 9/2/19 | purchase | 8,000 | 9600 | |||||
11/22/19 | purchase | 2700 | 2700 | J. Jones | |||||||
12/3/19 | purchase | 1000 | 3700 | dr | cr | balance | |||||
10/11/19 | purchase | 1600 | 1600 | ||||||||
11/28/19 | purchase | 1000 | 2600 | ||||||||
LGH Company | |||||||||||
Accounts Receivable Aging Schedule | |||||||||||
12/31/19 | |||||||||||
Number of Days Past Due | |||||||||||
Customer | Total Balance | Current | 1 - 30 | 31-60 | 61-90 | Over 90 | |||||
A. Abel | $ 6,200 | ||||||||||
B. Barber | 8,000 | ||||||||||
C. Curran | 4,500 | ||||||||||
D. Dapper | 2,100 | ||||||||||
E. Elmore | 3,700 | ||||||||||
F. Fierman | 6,500 | ||||||||||
G. Gaylord | 6,700 | ||||||||||
H. Harris | 5,500 | ||||||||||
I. Ireland | 9,600 | ||||||||||
J. Jones | 2,600 | ||||||||||
Total Accts. Receivable | $ 55,400 | Make sure that the total of the receivables | |||||||||
on your aging schedule is equal to the total Accounts Receivable! | |||||||||||
B)Calculate the Balance Required in the Allowance for Doubful Accounts -- | |||||||||||
LGH uses the Aging of Receivables Method | |||||||||||
% Likely | Required | ||||||||||
Number of Days Past Due | A/R Amount | Uncollectible | Allowance Balance | ||||||||
0 | 1% | ||||||||||
1 - 30 | 5% | ||||||||||
31-60 | 10% | ||||||||||
61-90 | 25% | ||||||||||
Over 90 | 40% | ||||||||||
Total | |||||||||||
C) Adjusting Entry | |||||||||||
Account Title(s) | Debit | Credit |
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