Current Attempt in Progress Sheridan Co. uses an aging schedule to determine its estimated uncollectible accounts at December 31. Complete the following schedule. Number of Days Accounts Receivable Estimated % Uncollectible Estimated Uncollectible Outstanding Accounts 0-30 days $286.000 1 % $ 31-60 days 88,000 4 % 61-90 days 44,000 10 % Over 90 days 22,000 20 % Total $440,000 Determine the required balance in the Allowance for Doubtful Accounts and the carrying amount of the accounts receivable. Allowance for doubtful accounts Carrying amount Current Attempt in Progress Cullumber Co. uses the percentage of sales approach to record bad debt expense. It estimates that 1.5 % of net credit sales will become uncollectible. Credit sales are $1,104,000 for the year ended April 30, 2021: sales discounts are $25,000; accounts receivable are $384,400; and the allowance for doubtful accounts has a credit balance of $7,440. Prepare the adjusting entry to record bad debt expense in 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Apr. 30 (To record estimate of uncollectible accounts.) eTextbook and Media List of Accounts Calculate the carrying amount of accounts receivable on April 30, 2021. Carrying amount $ Other bookmarks Question 3 /4 View Policies Current Attempt in Progress Sheridan Supply Co. has the following transactions: Nov. 1 Loaned $67.200 cash to A. Morgan on a one-year, 8 % note . Sold goods to H. Giorgi on acccount for $14,400, terms n/30. The goods cost Sheridan $9,000. Sheridan uses the perpetual 15 inventory system Sold goods to Wrightman, Inc., receiving a $22,800, three-month, 6 % note. The goods cost Sheridan $15,200. H. Giorgi was unable to pay her account. Giorgi gave Sheridan a six-month, 7 % note in settlement of her account. Dec. 1 15 31 Accrued interest revenue on all notes receivable. Interest is due at maturity. Mar. 1 Collected the amount owing on the Wrightman note. June H. Giorgi defaulted on the note. Future payment is expected. 15 Record the transactions for Sheridan Supply Co. Sheridan Supply Co. has no stated return policy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter '0" for the amounts. Record journal entries in the order presented in the problem.) Debit Credit Date Account Titles and Explanation (Lend cash in exchange for a note.) Record the transactions for Sheridan Supply Co. Sheridan Supply Co. has no stated return policy. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (Lend cash in exchange for a note.) (To record sales on account.) (To record cost of goods sold.) (To record sales in exchange for a note receivable.) (To record cost of goods sold.) 157 PM (Accept note for accounts receivable.) 4dENG 2019-10-17 Other bookmarks (To record sales in exchange for a note receivable.) (To record cost of goods sold.) (Accept note for accounts receivable.) (Accrue interest earned.) (To record collection of note receivable and interest.) (To record dishonouring of note where collection is expected.)
