- Journal Entries- Recording Sales Transactions - Net Method On September 10th, Sabre made a sale on account, 2/10,n30 for $400,000, and the company uses the net method. In the spaces below, record three journal entries related to the sale. Assuming Sabre uses the net method, record the sale transaction on September 10th. Record the entry Sabre. would make if the customer paid within the discount period, on September 18th. Record the entry Sabre. would make if the customer paid after the discount period expired, on October 12th. - Journal Entries- Writeoffs \& Bad Debts ( 20 points -5 points each). Read the information presented in each question and indicate the appropriate journal entries to record these amounts. Please note that you may or may not need all of the lines in each grid. Shrute Farms, Inc. has a balance of $210,000 in accounts receivable and $14,600 in the Allowance for Bad Debts. On January 14th, Shrute determines they have an account for $6,650 that needs to be written off. Record the write-off under the allowance method. Big Red Paper Company has $175,000 of Accounts Receivable and uses the direct write-off method. On March 16th, the company realizes it will not be able to collect an account for $8,000 and it needs to be written off. Prepare the journal entry to record the write-off under the direct write-off method. Vance Refrigeration Company has $168,000 in Accounts Receivable, and a $10,200 credit balance in the Allowance for Doubtful Accounts before adjustment. On March 31, 2020 the company calculates an estimate of $42,300 based on an aging analysis of accounts receivable. Record the appropriate adjusting entry below. BONUS OPPORTUNITY: What is the Net Realizable Value of A/R at 3/31/2020 if Vance Refrigeration Company uses the aging analysis method (see above entry) for accounting for bad debts? ( 2 points) Vance Refrigeration Company has $168,000 in Accounts Receivable, and a $10,200 credit balance in the Allowance for Doubtful Accounts before adjustment. Based on the percentage of sales method, the company estimates bad debts of $36,000 on March 31,2020 . Record the apnronriate adiusting entry below. - Journal Entries- Recording Sales Transactions - Net Method On September 10th, Sabre made a sale on account, 2/10,n30 for $400,000, and the company uses the net method. In the spaces below, record three journal entries related to the sale. Assuming Sabre uses the net method, record the sale transaction on September 10th. Record the entry Sabre. would make if the customer paid within the discount period, on September 18th. Record the entry Sabre. would make if the customer paid after the discount period expired, on October 12th. - Journal Entries- Writeoffs \& Bad Debts ( 20 points -5 points each). Read the information presented in each question and indicate the appropriate journal entries to record these amounts. Please note that you may or may not need all of the lines in each grid. Shrute Farms, Inc. has a balance of $210,000 in accounts receivable and $14,600 in the Allowance for Bad Debts. On January 14th, Shrute determines they have an account for $6,650 that needs to be written off. Record the write-off under the allowance method. Big Red Paper Company has $175,000 of Accounts Receivable and uses the direct write-off method. On March 16th, the company realizes it will not be able to collect an account for $8,000 and it needs to be written off. Prepare the journal entry to record the write-off under the direct write-off method. Vance Refrigeration Company has $168,000 in Accounts Receivable, and a $10,200 credit balance in the Allowance for Doubtful Accounts before adjustment. On March 31, 2020 the company calculates an estimate of $42,300 based on an aging analysis of accounts receivable. Record the appropriate adjusting entry below. BONUS OPPORTUNITY: What is the Net Realizable Value of A/R at 3/31/2020 if Vance Refrigeration Company uses the aging analysis method (see above entry) for accounting for bad debts? ( 2 points) Vance Refrigeration Company has $168,000 in Accounts Receivable, and a $10,200 credit balance in the Allowance for Doubtful Accounts before adjustment. Based on the percentage of sales method, the company estimates bad debts of $36,000 on March 31,2020 . Record the apnronriate adiusting entry below
