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adjusted TRIAL BALANCE GONE IN A FLASH 30-Nov-16 Debit Credit 100 Cash 54,338 110 Investment Securities--AFS 72,000 130 Accounts Receivable 48,608 131 Allowance for Doubtful
adjusted TRIAL BALANCE | |||
GONE IN A FLASH | |||
30-Nov-16 | |||
Debit | Credit | ||
100 | Cash | 54,338 | |
110 | Investment Securities--AFS | 72,000 | |
130 | Accounts Receivable | 48,608 | |
131 | Allowance for Doubtful Accounts | 2,094 | |
132 | Allowance for Sales Returns and Allowances | 1,863 | |
140 | Merchandise Inventory | 456,100 | |
150 | Prepaid Insurance | 13,468 | |
160 | Store Supplies | 12,721 | |
170 | Land | 285,820 | |
180 | Building | 476,895 | |
181 | Accumulated Depreciation: Building | 43,855 | |
182 | Office & Store Equipment | 163,941 | |
183 | Accumulated Depreciation: Office & Store Equipment | 38,664 | |
184 | Delivery Trucks | 198,545 | |
185 | Accumulated Depreciation: Delivery Trucks | 22,072 | |
200 | Accounts Payable | 51,274 | |
210 | FICA Taxes Payable | 0 | |
220 | Withholding Taxes Payable | 0 | |
230 | Unemployment Taxes Payable | 0 | |
240 | Union Dues Payable | 0 | |
250 | Salaries & Wages Payable | 0 | |
280 | Mortgage Payable | 200,000 | |
281 | Accrued Interest Payable | 0 | |
300 | Common Stock | 100,000 | |
301 | PIC in Excess of Par | 1,000,000 | |
350 | Retained Earnings | 85,937 | |
400 | Sales | 1,779,369 | |
401 | Sales Returns | 37,784 | |
402 | Sales Discounts | 12,027 | |
500 | Purchases | 1,174,818 | |
501 | Purchase Returns | 12,050 | |
502 | Purchase Discounts | 13,910 | |
520 | Freight In | 2,373 | |
600 | Salaries & Wages Expense | 261,324 | |
605 | Payroll Tax Expense | 38,056 | |
610 | Advertising Expense | 11,874 | |
640 | Utilities Expense | 19,904 | |
800 | Interest Expense | 8,792 | |
620 | REPAIR EXPENSE | 1700 | |
Totals | 3,351,088 | 3,351,088 |
2) Based on past experience as well as a review of the current accounts receivable detail, the credit department has determined that the following collectibility estimates are reasonable and should be used to adjust the Allowance for Doubtful Accounts at 12/31/16:
Invoice classification Estimated %
By month of sale Uncollectible
December, 2016 3%
November 2016 8%
October 2016 30%
Prior to October 2016 70%
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