entries related to uncollectible accounts

Entries related to uncollectible accounts Instructions Chart of Accounts TAccounts Journal Final Questions Instructions The following transactions were completed by Emmanuel Company during the current fiscal year ended December 31: Jan 29 Received 40% of the $18,200 balance owed by Jankovich Co., a bankrupt business, and wrote off the remainder as uncollectible. Apr. 18 Reinstated the account of Vince Karm, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,400 cash in full payment of Karm's account Wrote off the $6,465 balance owed by Golden Stallion Co., which has no assets Aug 9 Noy 7 Reinstated the account of Wiley Co., which had been written off in the preceding year as uncollectible Journalized the receipt of $3,830 cash in full payment of the account. Dec 31 Wrote off the following accounts as uncollectible (one entry) Claire Moon Inc. $7,190, Jet Set Co., $5,510; Randall Distributors, $9.410; Harmonic Audio, $1,205. Based on an analysis of the $1,820,500 of accounts receivable, it was estimated that $36,410 will be uncollectible. Journalized the adjusting entry. 31 Required: 1. Record the January 1 credit balance of $25,415 in a 7 account for Allowance for Doutor Accounts 2. a. Journalize the transactions. For the December 31 adjusting entry, assume the $1,820,500 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for the exact wording of the accounties CNOW journa/s do not use Ines for journal explanations. Every line on a journal page is used for debit or credit entries. ONOW Journals will automatically ident a crear entry when a credit amount is entered b. Post each entry that affects the following selected T accounts and determine the new balances Allowance for Doubtw Accounts and Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31 Yaner all of the adjustments and the adjusting entry) uncollectible. Journalized the adjusting entry. Required: 1. Record the January 1 credit balance of $25,415 in a Taccount for Allowance for Doubtw Accounts a. Journalize the transactions. For the December 31 adjusting entry, assume the $1,820,500 balance in accounts receivable reflects the adjustments made during the year. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indente credit entry when a credit amount is entered b. Post each entry that affects the following selected T accounts and determine the new balances. Allowance for Doubtful Accounts and Bad Debt Expense.* 3. Determine the expected net realizable value of the accounts receivabl e as of December 31 (after all of the adjustments and the adjusting entry) 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables the adjusting entry on December 31 had been based on an estimated expense of 4 of 1% of the sales of $18,350,000 for the year, determine the fowowing a. Bed debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. c. Expected net realizable value of the accounts receivable as of December 31 The ending balance label is provided on the len side of the T account even when the ending balance is a creat The used cell on the balance line should be left blank Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable Jankovich Co. 122 Accounts Receivable-Vince Karm EXPENSES 123 Accounts Receivable-Golden Stallion Co. 510 Cost of Merchandise Sold 124 Accounts Receivable-Wiley Co. 520 Sales Salaries Expense 125 Accounts Receivable-Claire Moon Inc. 521 Advertising Expense 128 Accounts Receivable Jet Set Co. 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Randall Distributors 523 Delivery Expense 128 Accounts Receivable-Harmonic Audio 524 Repairs Expense 129 Allowance for Doubtful Accounts 529 Selling Expenses 131 Interest Receivable 530 Office Salaries Expense 132 Notes Receivable 531 Rent Expense 141 Merchandise inventory 632 Depreciation Expense-Office Equipment 145 Office Supplies 533 Insurance Expense 146 Store Supplies 151 Prepaid insurance 634 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 181 Land 191 Store Equipment 537 Cash Short and Over 192 Accumulated Depreciation Store Equipment 638 Bad Debt Expense 181 Land 536 Credit Card Expense 537 Cash Short and Over 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 538 Bad Debt Expense 193 Office Equipment 539 Miscellaneous Expense 194 Accumulated Depreciation Office Equipment 710 Interest Expense LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Emmanuel, Capital 311 Emmanuel, Drawing Entries related to uncollectible accounts Instructions Chart of Accounts TAccounts Journal Final questions TAccounts X 1. Record the January 1 credit balance of $25,415 in aT account for Allowance for Doubtur Accounts, 2b. Post each entry that affects the following selected T accounts and determine the new balances. Allowance for Doubtful Accounts and Bad Debt Expense. *The ending balance label is provided on the left side of the T account even when the ending balance is a credit The unused celi on the balance line should be left blank Allowance for Doubtful Accounts Jan 1 Balance Dec. 31 Adj. Balance Bad Debt Expense Entries related to uncollectible accounts Instructions Chart of Accounts TAccounts Journal Final Quesmans Journal PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITE 2 3 4 5 6 7 8 3 10 w 11 12 13 14 15 16 17 Entries related to uncollectible accounts Instructions Chart of Accounts TAccounts Journal Final Questions Final Questions 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry) $ 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables the adjusting entry on December 31 had been based on an estimated expense of 70% of the sales of $18.350,000 for the year, determine the fo a. Bad debt expense for the year. $ b. Balance in the allowance account after the adjustment of December 31. $ c. Expected net realizable value of the accounts receivable as of December 31. $