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CC 8 - 1 ( Algo ) Accounting for Receivables and Uncollectible Accounts [ LO 8 - 2 , LO 8 - 4 ] The
CCAlgo Accounting for Receivables and Uncollectible Accounts LO LO
The following transactions occurred over the months of September to December at Nicole's Getaway Spa NGS
September Sold spa merchandise to Ashley Welch Beauty for $ on account; the cost of these goods to NGS was $
October Sold merchandise to Kelly Fast Nail Gallery for $ on account; the cost of these goods to NGS was $
November Sold merchandise to Raea Gooding Wellness for $ on account; the cost of these goods to NGS was $
December Received $ from Ashley welch Beauty for payment on its account.
Required:
Prepare journal entries for each of the transactions. Assume a perpetual inventory system.
Estimate the Allowance for Doubtful Accounts required at December assuming the only receivables outstanding at December arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, ; two months, ; three months, ; more than three months,
The Allowance for Doubtful Accounts balance was $credit before the endofperiod adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense.
Assume the end of the previous year showed net accounts receivable of $ and net sales for the current year are $ Calculate the accounts receivable turnover ratio.
Audrey's Mineral Spa has an accounts receivable turnover ratio of times. How does NGS compare to this competitor?
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Estimate the Allowance for Doubtful Accounts required at December assuming the only receivables outstanding at December arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, ; two months, ; three months, ; more than three months,
tableEstimated UncollectibleOne Month,Two Months,Three Months,More than Three Months,Total
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