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Arya Hound Inc. (AHI) uses the allowance method for estimating uncollectible accounts. They use a combination of the % of credits sales and the %

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Arya Hound Inc. (AHI) uses the allowance method for estimating uncollectible accounts. They use a combination of the % of credits sales and the % of accounts receivable approaches to determine bad debt expenselallowance for doubtful accounts. AHI produces financial statements every month, but files with the SEC at the end of each quarter. During the interim months (1st and 2nd months of the quarter they use 2.5% of credit sales as their estimate of bad debt expense. At the end of the quarter (3rd month of the quarter they use an aging schedule to determine the net amount of their accounts receivable balance expected to be collected Fill in the blanks with the appropriate account name and amount DR(S) should always be first sorted alphabetically if there are multiple debits. Then CR(s), likewise sorted alphabetically if there are multiple credits. The account name must come from the provided list and must be spelled abbreviated exactly the same. There must be exactly 1 space between the account name and the amount. The amount must not include a decimal or a sign (al answers should be rounded to the nearest whole dollar) For example if the correct answer is Accounts Receivable for 40,000.00 it must be written as AVR 40000 or A/R 40,000 to be counted correct Accts. Rec $40,000.00 will be counted incorrect. If no entry is needed, you must type "No Entry in all blanks for that event No blanks should be left empty Account List Must Match Exactly Chart of Accounts Full Account Name (DO NOT USE) Cash Accounts Receivable Allowance for Doubtful Accounts Accounts Payable Interest Expense Interest Payable Bad Debt Expense Notes Payable Prepaid Rent Rent Expense Unearned Revenue Notes Receivable Premium on Notes Receivable Discount on Notest Receivable Interest Revenue Interest Receivable Cost of Goods Sold Inventory Purchases Loss on Inventory LCM Adjustment Gain/Loss Recovery on Inventory LCM Adjustment Allowance to Reduce Inventory to Market Abbreviated Account Name (USE!) Cash AVR ADA AP Int-Exp Int.Pay BDE NP PPD-Rent Rent-Exp Un-Rev NR Prem-N/R Disc-N/R Int-Rev Int-Rec COGS Iny Purch Loss-LCM Gain-LCM Allow-LCM V Given credit sales of $1,100,000 in February make the appropriate journal entry to recognize bad debt expense for the month of February DR CR On March 3d the credit manager inform you that the balance of $50,000 due from RSWF Company is to be written off Make the appropriate journal entry to record this write on DR CR Blace You are presented with the following accounts receivable aging schedule prepared as of March 31st (the end of the quarter) Arya Honda AR Aging Schedule as of 331 Estated Cay Lacollectie C 500,000 0 - 30 days past due 200.000 54 31-60 days pas de 75,000 104 61 - 90 days past de 45.000 2095 90+ days past de $35.000 What is the net amount of the accounts receivable expected to be collected? What is the net amount of the accounts receivable expected to be collected? If the unadjusted balance of the allowance for doubtful accounts is a credit of $32,000 and using the information from the above aging schedule what is the appropriate adjusting entry to be made on March 315 DR CR On May 5th an $8,000 check arrives from RSWF Company for payment on a previously written off account. Record this transaction Step 1 DR CR Step 2 DR CR

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