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mere to search Signature: Date: Assignment 1 HRM210 W2020 Name: Student ID 3. BeleVu Supplies showed the following se Accounts Receivable Supplies showed the following selected adiusted balances at its December 31, 2019, year-end: Dec. 31/16 Balance 490,000 Allowance for Doubtful Accounts 16,400 Dec. 31/16 Balance During the year 2020, the following selected transactions occurred: a. Sales totalled $2,800,000, of which 25% were cash sales (cost of sales $1,804,000). b. Sales returns were $108,000, half regarding credit cales. The returned merchandise was scrapped c. An account for $24,000 was recovered. d. Several accounts were written off; $26,000. e. Collections from credit customers totalled $1.790,000 (excluding the recovery in (C) above). 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Cash ........... 700,000 2,100,000 2,800,000 1,804,000 1,804,000 108,000 Accounts Receivable................ Sales................... To record sales; 25% * $2,800,000 total sales - cash sales of $700,000 Cost of Goods Sold ........................ .......... ........ Merchandise Inventory ................ To record cost of sales. Sales Returns and Allowances.............................. Accounts Receivable ............... ............ ....... Cash ......................................... . . ... To record return of defective merchandise to be scrapped. I Cash Allowance for doubtful accounts An account Recovered I , 54,000 54,000 240vol 24000 I Page 4 of 7 Assignment 1 HRM210 W2020 70 Name: Student ID: Signature: _Date: d) - Allowance for doubtful accounts Customer's Xccounts Several accounts 26.000 26. ovo 79.00 Customers To record accounts Collection 179, ovo Part B 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1% of net credit sales. Dec. 31 Name of Account Debit Credit 3. What will be the balance of the Allowance for Doubtful Accounts 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 5. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3% of outstanding receivables. Name of Account Debit Credit Page 5 Assignment 1 HRM210 W2020 Signature Name: Date: Student ID: Calculations: Allowance for Doubtful Accounts Accounts Receivable 6. What will be the balance of the Allowance for Doubtful Accounts on the December 31, 2020, Dalance sheet. 7. What will bad debt expense be on the income statement for the year ended December 31, 2020? Page 6 of 7
