At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $228,000, and the balance in Allowance for Doubtful Accounts was $3,900. EZ Tech's sales in 2017 were $1,710,000, 90% of which were on credit. Collections on account during the year were $1,090,000. The company wrote off $7,000 of uncollectible accounts during the year. Required: 1. Identify and analyze the sales during 2017. Operating Cash Increase, Accounts Receivable Increase, Sales Revenue Increase Balance Sheet and Income Statement Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Assets Balance Sheet Liabilities Identify and analyze the transactions related to the collections of cash during 2017 + Stockholders' Equity Revenues Next < ebook Identify and analyze the transactions related to the collections of cash during 2017. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Accounts Assets Statement(s) Balance Sheet Identify and analyze the transactions related to the write-offs of accounts receivable during 2017. Activity Liabilities How does this entry affect the accounting equation? Stockholders' Equity Revenues Next > < How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Activity Accounts Assets Statement(s) Balance Sheet Liabilities Stockholders' 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 4% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 4% of credit sales. Equity Revenues How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Next How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, I.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Activity Accounts Assets Statement(s) Balance Sheet Llabilities b. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 7% of the year-end accounts receivable. Stockholders' Balance Sheet My Work 2 more Check My Work uses remaining Equity How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Revenues Stockholders' Next > Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Assets Liabilities Stockholders' Equity 3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)? Using the percentage of sales approach, the net realizable value of the receivables is? $ Using the percentage of year-end receivables approach, the net realizable value of the receivables is? the net realizable value by the amount recorded in bad debts expense and the 4. The recognition of bad debts expense reduces the net realizable value. The write-off of accounts has no effect on allowance for doubtful accounts Revenues Next At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $228,000, and the balance in Allowance for Doubtful Accounts was $3,900. EZ Tech's sales in 2017 were $1,710,000, 90% of which were on credit. Collections on account during the year were $1,090,000. The company wrote off $7,000 of uncollectible accounts during the year. Required: 1. Identify and analyze the sales during 2017. Operating Cash Increase, Accounts Receivable Increase, Sales Revenue Increase Balance Sheet and Income Statement Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Assets Balance Sheet Liabilities Identify and analyze the transactions related to the collections of cash during 2017 + Stockholders' Equity Revenues Next < ebook Identify and analyze the transactions related to the collections of cash during 2017. Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Accounts Assets Statement(s) Balance Sheet Identify and analyze the transactions related to the write-offs of accounts receivable during 2017. Activity Liabilities How does this entry affect the accounting equation? Stockholders' Equity Revenues Next > < How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Activity Accounts Assets Statement(s) Balance Sheet Liabilities Stockholders' 2. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 4% of credit sales and (b) amounts expected to be uncollectible are 7% of the year-end accounts receivable. a. Identify and analyze the adjustments to recognize bad debts assuming that bad debts expense is 4% of credit sales. Equity Revenues How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Next How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, I.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Activity Accounts Assets Statement(s) Balance Sheet Llabilities b. Identify and analyze the adjustments to recognize bad debts assuming that amounts expected to be uncollectible are 7% of the year-end accounts receivable. Stockholders' Balance Sheet My Work 2 more Check My Work uses remaining Equity How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Revenues Stockholders' Next > Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item. If a contra account is decreased, it will have the effect of increasing the corresponding financial statement item. Balance Sheet Assets Liabilities Stockholders' Equity 3. What is the net realizable value of accounts receivable on December 31, 2017, under each assumption in part (2)? Using the percentage of sales approach, the net realizable value of the receivables is? $ Using the percentage of year-end receivables approach, the net realizable value of the receivables is? the net realizable value by the amount recorded in bad debts expense and the 4. The recognition of bad debts expense reduces the net realizable value. The write-off of accounts has no effect on allowance for doubtful accounts Revenues Next