Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Chapter 08 Mastery (Mastery) You have just been hired as the accountant for Fan-Tastic Sports Car Inc., a wholesaler of sporting goods and apparel. The

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Chapter 08 Mastery (Mastery) You have just been hired as the accountant for Fan-Tastic Sports Car Inc., a wholesaler of sporting goods and apparel. The previous accountant lett abruptly in lato December, 2017, and an accounting intern has been drafting the journal entries since January You are examining the accounting records before finalizing the journal entries for the first quarter of 2078. The fotowing journal shows some of the accounts receivable transactions that you are reviewing PAGE 1 JOURNAL ACCOUNTING EQUATION CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION POST REF DATE tan 17 S DEBIT 9,700.00 1 9,700.00 1 1 Bad Debt Expert 17 Bad Dett Expense Accounts Receivables Sports Corp. 9.700.00 9,700.00 + 1 21 Cash 10,700,00 2,200.00 4 17,900.00 3,000.00 1 - 500.00 4 3,500.00 1 11 Bad Det Expense Accounts Receivable Four Seasons Sportswear Co. Feb 15 Accounts Receivable-Healthy Running In Bed Deot Expense Sales Mar4 Mccounts Receivable Four Seasons Sportswear Co. Bad Debt Expense 4 Cash Bad Dette 13 Cash 2.200,00 1 2,200.00 1 11 2,200.00 1 7,200.00 5.540.00 1 Jan 17 Sales 9,700.00 9,700.00 Bad Debt Expense 17 Bad Debt Expense Accounts Receivable-cs Sports Corp 9,700.00 9,700.00 . 21 Cash 10,700.00 T Bad Debt Expense 2,200.00 4 Accounts Receivable Four Seasons Sportswear Co. 12,900.00 Feb 15 Accounts Receivable-Healthy Running Inc. 3,000.00 T Bad Debt Expense 500.00 4 Sales 3,500.00 T 1 2200.00 1 7 2,200.00 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 4 Cash Bad Debt Expense 3 2,200.00 7 2,200.00 13 Cash 5.540.00 1 1 Accounts Receivable-Bart's Best Gear 5,540.00 . 31 20.870.00 5,250,00 1 15 4,100.00 1 Bad Debt Expense Accounts Receivable Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-s Sports Corp. Accounts Receivable-Get Your Gear Inc Accounts Receivable-Ready-2-Go 2,780.00 1 7,050.00 1 n 1,690.00 Fan-Tastic Sports Gear Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Rent Revenue 612 Interest Revenue EXPENSES 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJ's Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expenso 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 534 Office Supplies Experise 536 Credit Card Expense 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative pense 710 Interest Expense LIABILITIES ter 08 Mastery (Mastery) 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Uneamed Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary 2. You have made the following observations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear Inc. is handling uncollectibles receivables appropriately, which of these observations are key factors in your decision? Check all that apply Company sales last year were $2,000,000 and are expected to increase by $360,000 this year. An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year Most of the company's sales are on account The company spils primarily to smaller businesses, who are more likely to have cash flow problems Bad debt is a rising expense. * Collection agencies are routinely used. Poids: 0 8371 1. Assume that Fan-Tastic Sports Gear Inc. will be using the allowance method this year. Select any tomata from the following let that should be added to the duting chart of accounts. Check all that apply Allowance for Doubtful Account Estimate for Uncollectible Accounts Net Realizable Value of Receivables x Balance of Aging Accounts Total Credit Sales Point 0.87 2. Fruit journal entries shown on the Fan-Tastic Sports Gear ne preland make any necessary changes. Refer to the Chart of Accounts for the exact wording of accountle You may lose any tems from the preceding is shown in (1), i needed Question not attempted PACE 11 JOURNAL Score: 0/236 ACCOUNTING EQUATION BATE DESCRIPTION POSTAIT DEBIT CORT ASSETS LABLES rary 1 1 1 4 11 11 14 PESTISIVUTVU Chapter 08 Mastery (Mastery) PAGE 1 JOURNAL Score: 0/236 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DERIT CREDIT ASSETS CADILITIES . 10 18 14 16 Note Receivable In the trial balance for March, you see that Notes Receivable-Fast Foot Co has a negative balance of $105, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $2.730 in payment of this note receivable. Further investigation reveals that on November 19, 2077, this not receivable was received from Fast Foot Co. for $2,625. You can find no additional information about this note in the accounting records. Assume a 30 day year Using the preceding information, compute the term and the interest rate of the not receivable from Fast Foot 1. Term of the note: days Point 071 2. Interest rate of the note Points 0/1 3. Jomalize the entry needed to record information about the note recevable from Fast Foot for the year 2017. Assume that the entry on November 19, 2017 is correct. Restart to the Chart of Accounts of exact wording of account nifles. Round all amounts to the nearest dollar Question not attempted PAGE TY JOURNAL Score: 0/25 ACCOUNTING EQUATION DATE DESCRIPTION POSTRO CREDIT ASSETS LIABILITIES EQUITY 1 2 Point 015 Journal The entry reached to record collection of the note at maturity on March 19, 2018 Assume that the entry on November 19, 2017 les correct. Refer to the Chart al Account exact wording of accounts Round laments to the research Question not attempted PACE JOURNAL Score: 0/49 ACCOUNTING EQUATION TE DECHO POST DET CREDIT Lumes Qur I Points Fondo Fan-Tastic Sports Gear Ind. recorded $2,900,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account with over 300 customer accounts. Bad debt expense was 526,187 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.68% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtful accounts on December 317 Round all computations to the nearest dollar. S 2. How much higher (lower) would Fan-Tastic Sports Gear Inc net income have been under the allowance method assumption previously shown in (1) than under the direct write of method? (Enter there is no change.) Higher by S 3. Using the allowance method, the net realizable of the receivables would appear on which financial statement? Balance sheet Points 274 You have just been hired as the accountant for FanTale Sports Gear in a whole of sporting goods and apparel. The previous change in December, 2017 and an accounting on entres since JanuaryYou are examining counting records before instante uma for the first quarter of 2018 The towing umat shows some of the accurate actions that you are DESCRIPTION POST. REF CREDIT ASSETS LIABILITIES EQUITY DATE Jan 17 Sales DEBIT 9,700.00 9,700.00 T 17 9,700.00 1 Bad Debt Expense Bad Debt Expense Accounts Receivable-C Sports Corp. Cash Bad Debt Expense 9,700.00 1 21 10,700.00 1 2,200.00 1 7 Accounts Receivable Four Seasons Sportswear Co. 12,900.00 + 1 Feb. 15 3,000.00 1 Accounts Receivable-Healthy Running Inc. Bad Debt Expense 50000 Sales T 3,500.00 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. 2.200.00 2,200.00 1 12 Bad Debt Expense 1 4 2,200.00 13 Cash 2.200.00 1 Bad Debt Expense 5,540,00 1 13 15 Cash 5.540.00 . 20,870.00 11 5,250.00 1 1 19 Accounts Receivable-Barb's Best Gear 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivables Sports Corp. Accounts Receivable-Get Your Gear Inc Accounts Receivable-Ready-2-Go 4,100.00 2,780.00 4 20 7,050.00 1 21 1,690.00 . CHART OF ACCOUNTS Fan-Tastic Sports Gear Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Rent Revenue 612 Interest Revenue 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJ's Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 537 Cash Short and Over 538 Bad Debt Expense TZU ACCOUNts Receivable-Reauy-zgo ET AV 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 522 Depreciation Expense-Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Unearned Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary 2. You have made the following observations during your review of the country record. In deciding whether Fon Tate toonstar handling collectie receber, which of the train we way your decision? Check alt apply - va company sales last year were $0,300,000 and we expected to increase by $20,000 is your An analysis of the company's accounts receivable show more accounts we unclectible that you Most of the company's sales are on account The company sells primarily to smaller businesses who are more likely to have cash flow probleme Bad debitis arising experte X Colection agencies are routinely used 1. Assume that Fan-Tastic Sports Gear Ine wat be using the alowance method this year. Select any loss) from the following list that should be added to the existing chart el accounts. Check all that apply Allowance for Doubtful Accounts Estimate for Uncollectible Accounts Net Realable Value of Receivables X Balance of Aging Accounts Total Credit Sales 2. www.shown on the Pan Tase Boorted and make my rossary chrome Chart of Accounts for www way to the mediu UAatties JOURNAL Score: 0/236 ACCOUNTING EQUATION DATE LUBILITIES DESCRIPTION DENT CREDIT POST. RET FUITY ASSETS 1 3 7 13 14 18 11 the whole for Mwch you see that the centro com angive bacion, which wollen odotetto che ha ri Muhy tran March 18 country to conduct of 2.780 in payment of this note recevable. Further westones that on November 10, 2017. noreciated trom Fast Future additional information about this nobe in the accouting records Assume a day you Using the preceding whommationcompute the term and the interest rate of the role recently from Fart Foot 1. Term of the now days Po DI 2. nererate of the note Port At the entry needed a new formation about the returnvalde kom at /vet for yow 2017 A are entry on went awwwww decor Rundamento e rest Question nor attempted PAGE 1 JOURNAL Score: 0/2 ACCOUNTING EQUATION DATE BOT POST, REY CEO OTY DESCRIPTION LES AWETS DI 4. Journals the only ended to record collection of water at maturty on March 20. Asume way on November 18 2017 acomet Returns ne chat of Account creat covet tes und at man the nearest do Question not attempted JOURNAL Score: 0:49 ACCOUNTING EQUATION DATE DESCRIPTION POSTRE De CEPIT ASSETS COUNTY 1 - Parco Fan-Tastic Sports Gearing recorded $2,000,000 of sales last year and projects to increase by $360.000 neuenyew. Last year of awe an account with over 300 customer Bad 1. Assume at Fan-Taste Sponta Goa Incoad the allowance method last year, and the allowance account the end of the year had a debt balance at 2.240 The companyated recibe accounts expense oing the percent of credit als method and expected 0.05% of credit sales to be uncollectible. What is the amount of the adjusting enty to provide for doubt accounts on December 317 Round al computation to a neart.com 2. How much higher lower) would Fan-Tastic Sports Gear Inc net income have been under the allowance method assumption prevodystown (1) than under the direct write a metoder or there is no charge Higher by $ 3. Uning the allowance method, the breakable of the receivables would appear on which now semen? Bench Chapter 08 Mastery (Mastery) You have just been hired as the accountant for Fan-Tastic Sports Car Inc., a wholesaler of sporting goods and apparel. The previous accountant lett abruptly in lato December, 2017, and an accounting intern has been drafting the journal entries since January You are examining the accounting records before finalizing the journal entries for the first quarter of 2078. The fotowing journal shows some of the accounts receivable transactions that you are reviewing PAGE 1 JOURNAL ACCOUNTING EQUATION CREDIT ASSETS LIABILITIES EQUITY DESCRIPTION POST REF DATE tan 17 S DEBIT 9,700.00 1 9,700.00 1 1 Bad Debt Expert 17 Bad Dett Expense Accounts Receivables Sports Corp. 9.700.00 9,700.00 + 1 21 Cash 10,700,00 2,200.00 4 17,900.00 3,000.00 1 - 500.00 4 3,500.00 1 11 Bad Det Expense Accounts Receivable Four Seasons Sportswear Co. Feb 15 Accounts Receivable-Healthy Running In Bed Deot Expense Sales Mar4 Mccounts Receivable Four Seasons Sportswear Co. Bad Debt Expense 4 Cash Bad Dette 13 Cash 2.200,00 1 2,200.00 1 11 2,200.00 1 7,200.00 5.540.00 1 Jan 17 Sales 9,700.00 9,700.00 Bad Debt Expense 17 Bad Debt Expense Accounts Receivable-cs Sports Corp 9,700.00 9,700.00 . 21 Cash 10,700.00 T Bad Debt Expense 2,200.00 4 Accounts Receivable Four Seasons Sportswear Co. 12,900.00 Feb 15 Accounts Receivable-Healthy Running Inc. 3,000.00 T Bad Debt Expense 500.00 4 Sales 3,500.00 T 1 2200.00 1 7 2,200.00 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. Bad Debt Expense 4 Cash Bad Debt Expense 3 2,200.00 7 2,200.00 13 Cash 5.540.00 1 1 Accounts Receivable-Bart's Best Gear 5,540.00 . 31 20.870.00 5,250,00 1 15 4,100.00 1 Bad Debt Expense Accounts Receivable Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivable-s Sports Corp. Accounts Receivable-Get Your Gear Inc Accounts Receivable-Ready-2-Go 2,780.00 1 7,050.00 1 n 1,690.00 Fan-Tastic Sports Gear Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Rent Revenue 612 Interest Revenue EXPENSES 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJ's Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expenso 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 534 Office Supplies Experise 536 Credit Card Expense 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative pense 710 Interest Expense LIABILITIES ter 08 Mastery (Mastery) 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Uneamed Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary 2. You have made the following observations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear Inc. is handling uncollectibles receivables appropriately, which of these observations are key factors in your decision? Check all that apply Company sales last year were $2,000,000 and are expected to increase by $360,000 this year. An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year Most of the company's sales are on account The company spils primarily to smaller businesses, who are more likely to have cash flow problems Bad debt is a rising expense. * Collection agencies are routinely used. Poids: 0 8371 1. Assume that Fan-Tastic Sports Gear Inc. will be using the allowance method this year. Select any tomata from the following let that should be added to the duting chart of accounts. Check all that apply Allowance for Doubtful Account Estimate for Uncollectible Accounts Net Realizable Value of Receivables x Balance of Aging Accounts Total Credit Sales Point 0.87 2. Fruit journal entries shown on the Fan-Tastic Sports Gear ne preland make any necessary changes. Refer to the Chart of Accounts for the exact wording of accountle You may lose any tems from the preceding is shown in (1), i needed Question not attempted PACE 11 JOURNAL Score: 0/236 ACCOUNTING EQUATION BATE DESCRIPTION POSTAIT DEBIT CORT ASSETS LABLES rary 1 1 1 4 11 11 14 PESTISIVUTVU Chapter 08 Mastery (Mastery) PAGE 1 JOURNAL Score: 0/236 ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DERIT CREDIT ASSETS CADILITIES . 10 18 14 16 Note Receivable In the trial balance for March, you see that Notes Receivable-Fast Foot Co has a negative balance of $105, which would seem to indicate that Fast Feet paid too much. Looking back through the journal entries for March, you find that on March 19 the accounting intern recorded receipt of $2.730 in payment of this note receivable. Further investigation reveals that on November 19, 2077, this not receivable was received from Fast Foot Co. for $2,625. You can find no additional information about this note in the accounting records. Assume a 30 day year Using the preceding information, compute the term and the interest rate of the not receivable from Fast Foot 1. Term of the note: days Point 071 2. Interest rate of the note Points 0/1 3. Jomalize the entry needed to record information about the note recevable from Fast Foot for the year 2017. Assume that the entry on November 19, 2017 is correct. Restart to the Chart of Accounts of exact wording of account nifles. Round all amounts to the nearest dollar Question not attempted PAGE TY JOURNAL Score: 0/25 ACCOUNTING EQUATION DATE DESCRIPTION POSTRO CREDIT ASSETS LIABILITIES EQUITY 1 2 Point 015 Journal The entry reached to record collection of the note at maturity on March 19, 2018 Assume that the entry on November 19, 2017 les correct. Refer to the Chart al Account exact wording of accounts Round laments to the research Question not attempted PACE JOURNAL Score: 0/49 ACCOUNTING EQUATION TE DECHO POST DET CREDIT Lumes Qur I Points Fondo Fan-Tastic Sports Gear Ind. recorded $2,900,000 of sales last year and projects sales to increase by $360,000 in the current year. Last year, 80% of sales were on account with over 300 customer accounts. Bad debt expense was 526,187 1. Assume that Fan-Tastic Sports Gear Inc. used the allowance method last year, and the allowance account at the end of the year had a debit balance of $2,240. The company estimated uncollectible accounts expense using the percent of credit sales method and expected 0.68% of credit sales to be uncollectible. What is the amount of the adjusting entry to provide for doubtful accounts on December 317 Round all computations to the nearest dollar. S 2. How much higher (lower) would Fan-Tastic Sports Gear Inc net income have been under the allowance method assumption previously shown in (1) than under the direct write of method? (Enter there is no change.) Higher by S 3. Using the allowance method, the net realizable of the receivables would appear on which financial statement? Balance sheet Points 274 You have just been hired as the accountant for FanTale Sports Gear in a whole of sporting goods and apparel. The previous change in December, 2017 and an accounting on entres since JanuaryYou are examining counting records before instante uma for the first quarter of 2018 The towing umat shows some of the accurate actions that you are DESCRIPTION POST. REF CREDIT ASSETS LIABILITIES EQUITY DATE Jan 17 Sales DEBIT 9,700.00 9,700.00 T 17 9,700.00 1 Bad Debt Expense Bad Debt Expense Accounts Receivable-C Sports Corp. Cash Bad Debt Expense 9,700.00 1 21 10,700.00 1 2,200.00 1 7 Accounts Receivable Four Seasons Sportswear Co. 12,900.00 + 1 Feb. 15 3,000.00 1 Accounts Receivable-Healthy Running Inc. Bad Debt Expense 50000 Sales T 3,500.00 Mar. 4 Accounts Receivable-Four Seasons Sportswear Co. 2.200.00 2,200.00 1 12 Bad Debt Expense 1 4 2,200.00 13 Cash 2.200.00 1 Bad Debt Expense 5,540,00 1 13 15 Cash 5.540.00 . 20,870.00 11 5,250.00 1 1 19 Accounts Receivable-Barb's Best Gear 31 Bad Debt Expense Accounts Receivable-Healthy Running Inc. Accounts Receivable-The Locker Room Accounts Receivables Sports Corp. Accounts Receivable-Get Your Gear Inc Accounts Receivable-Ready-2-Go 4,100.00 2,780.00 4 20 7,050.00 1 21 1,690.00 . CHART OF ACCOUNTS Fan-Tastic Sports Gear Inc. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Rent Revenue 612 Interest Revenue 111 Petty Cash 121 Accounts Receivable-Healthy Running Inc. 122 Accounts Receivable-The Locker Room 123 Accounts Receivable-CJ's Sports Corp. 124 Accounts Receivable-Get Your Gear Inc. 125 Accounts Receivable-Four Seasons Sportswear Co. 126 Accounts Receivable-Ready-2-Go EXPENSES 510 Cost of Goods Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 537 Cash Short and Over 538 Bad Debt Expense TZU ACCOUNts Receivable-Reauy-zgo ET AV 127 Accounts Receivable-Barb's Best Gear 132 Notes Receivable-Fast Feet Co. 136 Interest Receivable 141 Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 522 Depreciation Expense-Store Equipment 523 Delivery Expense 529 Miscellaneous Selling Expense 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Misc. Administrative Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 212 Unearned Rent 213 Customer Refunds Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary 2. You have made the following observations during your review of the country record. In deciding whether Fon Tate toonstar handling collectie receber, which of the train we way your decision? Check alt apply - va company sales last year were $0,300,000 and we expected to increase by $20,000 is your An analysis of the company's accounts receivable show more accounts we unclectible that you Most of the company's sales are on account The company sells primarily to smaller businesses who are more likely to have cash flow probleme Bad debitis arising experte X Colection agencies are routinely used 1. Assume that Fan-Tastic Sports Gear Ine wat be using the alowance method this year. Select any loss) from the following list that should be added to the existing chart el accounts. Check all that apply Allowance for Doubtful Accounts Estimate for Uncollectible Accounts Net Realable Value of Receivables X Balance of Aging Accounts Total Credit Sales 2. www.shown on the Pan Tase Boorted and make my rossary chrome Chart of Accounts for www way to the mediu UAatties JOURNAL Score: 0/236 ACCOUNTING EQUATION DATE LUBILITIES DESCRIPTION DENT CREDIT POST. RET FUITY ASSETS 1 3 7 13 14 18 11 the whole for Mwch you see that the centro com angive bacion, which wollen odotetto che ha ri Muhy tran March 18 country to conduct of 2.780 in payment of this note recevable. Further westones that on November 10, 2017. noreciated trom Fast Future additional information about this nobe in the accouting records Assume a day you Using the preceding whommationcompute the term and the interest rate of the role recently from Fart Foot 1. Term of the now days Po DI 2. nererate of the note Port At the entry needed a new formation about the returnvalde kom at /vet for yow 2017 A are entry on went awwwww decor Rundamento e rest Question nor attempted PAGE 1 JOURNAL Score: 0/2 ACCOUNTING EQUATION DATE BOT POST, REY CEO OTY DESCRIPTION LES AWETS DI 4. Journals the only ended to record collection of water at maturty on March 20. Asume way on November 18 2017 acomet Returns ne chat of Account creat covet tes und at man the nearest do Question not attempted JOURNAL Score: 0:49 ACCOUNTING EQUATION DATE DESCRIPTION POSTRE De CEPIT ASSETS COUNTY 1 - Parco Fan-Tastic Sports Gearing recorded $2,000,000 of sales last year and projects to increase by $360.000 neuenyew. Last year of awe an account with over 300 customer Bad 1. Assume at Fan-Taste Sponta Goa Incoad the allowance method last year, and the allowance account the end of the year had a debt balance at 2.240 The companyated recibe accounts expense oing the percent of credit als method and expected 0.05% of credit sales to be uncollectible. What is the amount of the adjusting enty to provide for doubt accounts on December 317 Round al computation to a neart.com 2. How much higher lower) would Fan-Tastic Sports Gear Inc net income have been under the allowance method assumption prevodystown (1) than under the direct write a metoder or there is no charge Higher by $ 3. Uning the allowance method, the breakable of the receivables would appear on which now semen? Bench

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions