Question
Fan-Tastic Sports Gear Inc. You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The
Fan-Tastic Sports Gear Inc.
You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, 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 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing.
| Journal | |||
| Date | Description | Debit | Credit |
| Jan. 17 | Sales | 9,700 | |
| Bad Debt Expense | 9,700 | ||
| 17 | Bad Debt Expense | 9,700 | |
| Accounts Receivable-CJs Sports Corp. | 9,700 | ||
| 21 | Cash | 10,700 | |
| Bad Debt Expense | 2,200 | ||
| Accounts Receivable-Four Seasons Sportswear Co. | 12,900 | ||
| Feb. 15 | Accounts Receivable-Healthy Running Inc. | 3,000 | |
| Bad Debt Expense | 500 | ||
| Sales | 3,500 | ||
| Mar. 4 | Accounts Receivable-Four Seasons Sportswear Co. | 2,200 | |
| Bad Debt Expense | 2,200 | ||
| 4 | Cash | 2,200 | |
| Bad Debt Expense | 2,200 | ||
| 13 | Cash | 5,540 | |
| Accounts Receivable-Barbs Best Gear | 5,540 | ||
| 31 | Bad Debt Expense | 20,970 | |
| Accounts Receivable-Healthy Running Inc. | 5,250 | ||
| Accounts Receivable-The Locker Room | 4,100 | ||
| Accounts Receivable-CJs Sports Corp. | 2,780 | ||
| Accounts Receivable-Get Your Gear Inc. | 7,050 | ||
| Accounts Receivable-Ready-2-Go | 1,790 | ||
Revised Journal Entries
1. Assume that Fan-Tastic Sports Gear Inc. will be using the allowance method this year. Select the item from the following list that should be added to the existing chart of accounts.
1. Review the different journal entries used in the allowance method.
2. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes. If an amount box does not require an entry, leave it blank.
| Jan. 17 | Allowance for Doubtful AccountsAccounts Receivable-Healthy Running Inc.CashSalesInterest ExpensesAllowance for Doubtful Accounts | Allowance for Doubtful Accounts | Allowance for Doubtful Accounts |
| Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.CashSalesInterest ExpensesAccounts Receivable-CJ's Sports Corp. | Accounts Receivable-CJ's Sports Corp. | Accounts Receivable-CJ's Sports Corp. | |
| Jan. 21 | Accounts Receivable-Ready-2-GoAccounts Receivable-Healthy Running Inc.CashSalesInterest ExpensesCash | Cash | Cash |
| Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Allowance for Doubtful AccountsSalesInterest ExpensesAccounts Receivable-CJ's Sports Corp. | Accounts Receivable-CJ's Sports Corp. | Accounts Receivable-CJ's Sports Corp. | |
| Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Accounts Receivable-Four Seasons Sportswear Co.SalesInterest Expenses | - Select - | - Select - | |
| Feb. 15 | Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Accounts Receivable-The Locker RoomSalesInterest Expenses | - Select - | - Select - |
| Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Barb's Best GearAccounts Receivable-The Locker RoomSalesInterest Expenses | - Select - | - Select - | |
| Mar. 4 | Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Accounts Receivable-The Locker RoomAccounts Receivable-Four Seasons Sportswear Co.Interest Expenses | - Select - | - Select - |
| Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Allowance for Doubtful AccountsSalesInterest Expenses | - Select - | - Select - | |
| Mar. 4 | Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Accounts Receivable-The Locker RoomCashInterest Expenses | - Select - | - Select - |
| Accounts Receivable-CJ's Sports Corp.Accounts Receivable-Healthy Running Inc.Accounts Receivable-The Locker RoomAccounts Receivable-Four Seasons Sportswear Co.Interest Expenses | - Select - | - Select - | |
| Mar. 13 | Allowance for Doubtful AccountsAccounts Receivable-Healthy Running Inc.Accounts Receivable-The Locker RoomCashSales | - Select - | - Select - |
| Allowance for Doubtful AccountsAccounts Receivable-Healthy Running Inc.Accounts Receivable-The Locker RoomAccounts Receivable-Barb's Best GearSales | - Select - | - Select - | |
| Mar. 31 | Allowance for Doubtful AccountsCost of Goods SoldBonds PayableSalesInterest Expenses | - Select - | - Select - |
| Accounts Receivable-Healthy Running Inc.Cost of Goods SoldBonds PayableSalesInterest Expenses | - Select - | - Select - | |
| Accounts Receivable-The Locker RoomGain on Redemption of BondsInterest RevenueInterest ExpensesSales | - Select - | - Select - | |
| Accounts Receivable-CJ's Sports Corp.Bonds PayableDiscount on Bonds PayableSalesInterest Expenses | - Select - | - Select - | |
| Accounts Receivable-Get Your Gear Inc.Cost of Goods SoldNotes PayableSalesInterest Expenses | - Select - | - Select - | |
| Accounts Receivable-Ready-2-GoCost of Goods SoldNotes PayableSalesInterest Expenses | - Select - | - Select - |
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