Hello i have the difficult time to find the solution or Part B and C on page 594 of the Fundamental Accouting Principles, 16th canadian edition.
CHAPTER 8 Receivables Problem 8-4B Aging accounts receivable LO2,3 excel CHECK FIGURE: 2. Bad Debt Expense = $97,365 balance of $9,800. The accountant for Fresh has prepared a schedule of the December 31, 2020, accounts re- On December 31, 2020, Fresh Veggie Company's Allowance for Doubtful Accounts had an unadjusted debit ceivable by age and, on the basis of past experience, has estimated the percentage of the receivables in each age category that will become uncollectible. This information is summarized as follows: December 31, 2020 Accounts Receivable Age of Accounts Receivable Expected'Rereenigde Uncollectibles 1.25% $1,510,000 715,000 152,000 97,000 Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 2.00 6.50 33.00 50.00 25,000 Required 1. Calculate the amount that should appear in the December 31, 2020, balance sheet as the Allowance for Doubtful Accounts. 2. Prepare the journal entry to record bad debt expense for 2020. Analysis Component: On July 31, 2021, Fresh concluded that a customer's $9,200 receivable (created in 2020) was uncollectible and that the account should be written off. What effect will this action have on Fresh's 2021 profit? Explain your answer. Problem 8-5B Accounts receivable transactions and bad debt adjustments LO1, 2, 3 CHECK FIGURES: 2. Bad Debt Expense = $118,160; 5. Bad Debt Expense = $35,940 Wondra Supplies showed the following selected adjusted balances at its December 31, 2019, year-end: Allowance for Doubtful Accounts Accounts Receivable 12,300 Dec. 31/19 Balance 2 Dec. 31/19 Balance 490,000 During 2020, the following selected transactions occurred: Sales totalled $1,800,000, of which 85% were credit sales (cost of sales $987,000). b. Sales returns were $31,000, all regarding credit sales. The returned merchandise was scrapped. C. An account for $29,000 was recovered. d. Several accounts were written off, including one very large account; the total was $65,500. e. Collected accounts receivable of $1,630,000 (excluding the recovery in (c) above). Sales discounts of $22,000 were taken. Part A Required 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable and Allowance for Doubtful Accounts. 593 CHAPTER 8 Receivables Part B L a Required 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts, assuming uncollectible accounts are estimated to be 8% of net credit sales. 3. Show how accounts receivable will appear on the December 31, 2020, balance sheet. 4. What will bad debt expense be on the income statement for the year ended December 31, 2020? Part C (independent of Part B) Required 5. Prepare the December 31, 2020. adjusting entry to estimate bad debts, assuming uncollectible accounts are estimated to be 4% of outstanding receivables. 6. Show how accounts receivable will appear on the December 31, 2020, balance sheet. 7. What will bad debt expense be on the income statement for the year ended December 31, 2020? Prohlem 8-6B Recording accounts receivable transactions and bad debt adjustments L01,2,3
