Execusmart Consultants has provided business consulting services for several years. The company has been using the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $290,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $145,000 of accounts receivable. d. On February 15, the company wrote off a $600 account receivable. e. During February, the company provided services for $240,000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $12,000 to an employee, who signed a 11% note due in 3 months. h. On March 15, the company collected $600 on the account written off one month earlier. i. On March 31, the company accrued interest earned on the note. J. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $7,800. Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (%) $ 1,900 $ 800 $ 700 $ 400 Total 0-30 Number of Days Unpaid 31-60 61-90 Over 98 2,900 $2,900 95,100 2,900 $102,800 36,300 2,900 $40,000 48,000 5,900 4,900 $48,700 3% 20% $6,300 30% $7,800 40% 2. Prepare the journal entries for items (a)-(). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 8 10 11 Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit. Bad Debt Expense Allowance for Doubtful Accounts Record entry Clear entry View general journal Execusmart Consultants has provided business consulting services for several years. The company has been using the percentage of credit sales method to estimate bad debts but switched at the end of the first quarter this year to the aging of accounts receivable method. The company entered into the following partial list of transactions. a. During January, the company provided services for $290,000 on credit. b. On January 31, the company estimated bad debts using 1 percent of credit sales. c. On February 4, the company collected $145,000 of accounts receivable. d. On February 15, the company wrote off a $600 account receivable. e. During February, the company provided services for $240,000 on credit. On February 28, the company estimated bad debts using 1 percent of credit sales. g. On March 1, the company loaned $12,000 to an employee, who signed a 11% note due in 3 months. h. On March 15, the company collected $600 on the account written off one month earlier. i. On March 31, the company accrued interest earned on the note. J. On March 31, the company adjusted for uncollectible accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $7,800. Customer Arrow Ergonomics Asymmetry Architecture Others (not shown to save space) Weight Whittlers Total Accounts Receivable Estimated Uncollectible (%) $ 1,900 $ 800 $ 700 $ 400 Total 0-30 Number of Days Unpaid 31-60 61-90 Over 98 2,900 $2,900 95,100 2,900 $102,800 36,300 2,900 $40,000 48,000 5,900 4,900 $48,700 3% 20% $6,300 30% $7,800 40% 2. Prepare the journal entries for items (a)-(). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 8 10 11 Record the adjusting entry for bad debts as of March 31, using the aging of accounts receivable method. Note: Enter debits before credits. Transaction General Journal Debit Credit. Bad Debt Expense Allowance for Doubtful Accounts Record entry Clear entry View general journal
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Which of these situations require a situational business report? Check all that apply. Associates' sales numbers need to be tracked and compiled to determine who will receive a promotion. The...
-
Question 9 3.34 pts Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D = $0.67; Po = $57.50; and g = 8.00% (constant). What is the cost of equity...
-
Execusmart Consultants has provided business consulting services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting...
-
Refer to the GrandScapes data set. Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally...
-
Define each of these terms used in the 3-Point Estimates method, and indicate how each is determined. a. Expected activity' duration. b. Variance of activity duration. c. Standard deviation of a...
-
The black grille on the back of a refrigerator has a surface temperature of 35C with a total surface area of 1 m2. Heat transfer to the room air at 20C takes place with an average convective heat...
-
The firm's decision as to how to raise money is more formally referred to as: a. The capital-structure decision b. The capital-budgeting decision c. The dividend decision d. The financial-management...
-
The Installment Jewelry Company has been in business for 5 years but has never had an audit made of its financial statements. Engaged to make an audit for 2007, you find that the company's balance...
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 212,000 Purchases of raw materials $...
-
Bob is single and works for IBM. He has a 4 yr old daughter. During the year, he had the following financial transactions. 1. Bob earned 130,000 from his employment before any monies were taken out....
-
REI sells snowboards. Assume the following information relates to REI's purchases of snowboards during September. During the same month, 110 snowboards were sold. Date Explanation Units Unit Cost...
-
Lindon Company is the exclusive distributor for an automotive product selling for $50.00 per unit with a CM ratio of 30%. The company's fixed expenses are $345,000 per year and it plans to sell...
-
Solve the given equation. 0.3x=6+2 The solution(s) is (are) x = 0, (Round to three decimal places as needed. Use a comma to separate answers as needed.)
-
A conical paper cup is 20 inches tall with a radius of 10 inches. The bottom of the cup is punctured so that the water leaks out at a rate of (2pi) / 3 cubic inches per second. At what rate is the...
-
Calculate the value of a firm through the use of discounted cash flow analysis. Problems: 1. Complete problem: Yield to Maturity for Annual Payments XYZ Corporation's bonds have 14 years remaining...
-
On your first day as HIM Director at a small community hospital, your coding staff has come to you complaining about the number of errors originating from patient access department.Over the course of...
-
Arlington Merchants reported the following on its income statement for the fiscal years ending December 31, 2016 and 2015. 2016 2015 Sales $4,857,500 $4,752,900 Cost of goods sold 3,258,950 3,207,000...
-
Assume that locational arbitrage ensures that spot exchange rates are properly aligned. Also assume that you believe in purchasing power parity. The spot rate of the British pound is $1.80. The spot...
-
The U.S. 3-month interest rate (unannualized) is 1 percent. The Canadian 3-month interest rate (unannualized) is 4 percent. Interest rate parity exists. The expected inflation over this period is 5...
-
Todays spot rate of the Mexican peso is $.10. Assume that purchasing power parity holds. The U.S. inflation rate over this year is expected to be 7 percent, while the Mexican inflation over this year...
Study smarter with the SolutionInn App