Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that Simple Co. had credit sales of $272,000 and cost of goods sold of $161,000 for the period. It estimates that percent of credit

image text in transcribed
image text in transcribed
Assume that Simple Co. had credit sales of $272,000 and cost of goods sold of $161,000 for the period. It estimates that percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,600 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $360, 1. Prepare the journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the end-of-period adjustment for bad debts under the aging of accounts receivable method. Note: Enter debits before credits Transaction General Journal Credit Debit 2.720 b Accounts Receivable 2.720 Record entry Clear entry View general Journal 360 I Savod RecRoom Equipment Company received an $8,600, six-month, 6 percent note to settle an $8,600 unpaid balance owed by a customer. a. The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable. b. RecRoom adjusts its records for interest earned to its December 31 year-end. c RecRoom receives the interest on the note's maturity date. d. RecRoom receives the principal on the note's maturity date. Prepare journal entries to record the above transactions for RecRoom. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 Record the receipt of a note on November 1 for $8,600 to settle an outstanding accounts receivable balance of a customer. A Note: Enter debits before credits Debit Credit General Journal Date Nov 01

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Costing And Management

Authors: Riad Izhar, Janet Hontoir

2nd Edition

9780198328230

More Books

Students also viewed these Accounting questions

Question

Define psychology and cite its four major goals.

Answered: 1 week ago

Question

b. A workshop on stress management sponsored by the company

Answered: 1 week ago