HW QUESTION 5-9
Mazie Supply Company uses the percent of accounts receivable method. On December 31 , it has outstanding accounts receivable of $93,000, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,581 credit balance before the adjustment. (b) a $465 debit balance before the adjustment. Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,581 credit balance before the adjustment. Note: Enter debits before credits. Mayfair Company completed the following transactions and uses a perpetual inventory system. June 4 Sold $2,600 of merchandise on credit (that had cost $1,600 ) to Natara Morris, terms n/15. June 5 sold $29,000 of merchandise (that had cost $17,400 ) to customers who used their Zisa cards. Zisa charges a 3% fee. June 6 Sold $20,000 of merchandise (that had cost $12,000 ) to customers who used their Access cards. Access charges a 2% fee. June 8 Sold $17,000 of merchandise (that had cost $2,900 ) to customers who used their Access cards. Access charges a 1% fee. June 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $2,040 balance in McKee's account was from a credit sale last year. June 18 Received Morris's check in full payment for the June 4 purchase. Required: Prepare journal entries to record the preceding transactions and events. Journal entry worksheet Note: Enter debits before credits. Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. equired: Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.) Journal entry worksheet Note: Enter debits before credits. Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. On June 30 of the next year, Jarden concludes that a customer's $4,300 receivable is uncollectible and the account is written off. Does this write-off directly affect Jarden's net income
