Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 7-15 (Algo) Uncollectible accounts; allowance method; balance sheet approach (L07-5, 7-6) Colorado Rocky Cookte Company offers credit terms to its customers. At the end

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Exercise 7-15 (Algo) Uncollectible accounts; allowance method; balance sheet approach (L07-5, 7-6) Colorado Rocky Cookte Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled 5690.000 The allowance method is used to account for uncollectible accounts. The alowance for uncollectible accounts had a credit balance of $45.000 at the beginning of 2021 and $27.500 in receivables were winten off dunng the year as uncollectible. Also. $2.500 in cash was received in December from a customer whose account previously had been wien oft. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year Required: 1. Prepare Journal entries to record the write-off or receivables, the collection of $2.500 for previously women off receivables, and the year-end adjusting entry for bad debt expense 2. How would accounts receivable be shown in the 2021 year-end balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the write-off of receivables, the collection of $2.500 for previously written off receivables, and the year end adjusting entry for bad debt expense. (if no antey is required for a transaction/event, selectoral styrebuired the first account field.) View transaction list Journal entry worksheet Record the reinstatement of an account previously written off Note Enterdisbits before credits Event General Journal edit 2 Record entry Clear entry View general Journal Required 2 > Prey 5 of 9 Exercise 7-15 (Algo) Uncollectible accounts, allowance method: balance sheet approach (L07-5, 7-6) Colorado Rocky Cookie Company offers credit terms 10-15 customers At the end of 2021 accounts receivable totaled $690.000 The allowance method is used to account for uncollectible accounts. The nlcvance for uncollectible accounts had a credit balance of $45.000 at the beginning of 2021 and $27.500 in receivables were men off curing one year as uncollectible. Also, $2,500 m cach wos teceived in December from a customer whose account previously had been written 0 The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year Required: 1. Prepare journal entries to record the write-off of recewablesthe collection of $2500 for previously written off recevables, and the 2. How would accounts receivable be shown in the 2021 year-end balance sheet Complete this question by entering your answers in the tabs below Required: Required 2 Prepare journal entries to record the write-off of receivables the collection of $2.500 for previously written of receivables, and the year end adjusting entry for bad debt expense. (If no entry required for atrastelavent calect "Ne joumal try required in the first account field.) View transactionist Journal entry worksheet 1 2 3 4 > Record the write-off of receivables. Note: Enter debits before credits Event General Journal Creo Record entry Clear entry View general journal Required 2 > Exercise 7-15 (Algo) Uncollectible accounts; allowance method; balance sheet approach (LO7-5, 7-6) Colorado Rocky Cookte Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $690,000. The allowance method is used to account for uncollectible accounts. The aitowance for uncollectible accounts had a credit balance of $45.000 at the beginning of 2021 and $27,500 in receivables were written off during the year as uncollectible Also, $2,500 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year Required: 1. Prepare journal entries to record the write-off of receivables, the collection of $2500 for previously written oft receivables, and me year-end adjusting entry for bad debt expense 2. How would accounts receivable be shown in the 2021 year-end balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the write-off of receivables, the collection of 32.500 fer previously written off receivables, and the year end adjusting entry for bad debt expense. (if no ente la required for transaction/event, elect.Ne journal entry required in the first account field.) View transaction list Journal entry worksheet Exercise 7-15 (Algo) Uncollectible accounts; allowance method; balance sheet approach (LO7-5, 7-6) Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $690,000. The allowance method is used to account for uncollectible accounts The allowance for uncollectible accounts had a credit balance of $45.000 at the beginning of 2021 and $27,500 in receivables were written off during the year as uncollectible Also, $2.500 in cash was received in December from a customer whose account previously had been written off the company estimates bad debts by applying a percentage of 10% to accounts receivable at the end of the year. Required: 1. Prepare journal entries to record the write-off of receivables, the collection of $2,500 for previously written off receivables, and the year-end adjusting entry for bad debt expense. 2. How would accounts receivable be shown in the 2021 year-end balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 How would accounts receivable be shown in the 2021 year and balance sheet Balance sheet Partial) Current Assets Accounts receivable (net)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach With Data Analytics

Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton

2nd Edition

1119786045, 978-1119785996

More Books

Students also viewed these Accounting questions

Question

Menstrual cycle length. Exercise

Answered: 1 week ago