Langston Hayes runs a part-time catering service. All sales are billed to clients with a credit...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Langston Hayes runs a part-time catering service. All sales are billed to clients with a credit terms that stipulate payment must be received 30 days after the invoice is received. The Allowance method for bad debts is used for any accounts deemed uncollectible. Analyze the following selected transactions and record the account names and amounts affected. Leave all fields blank if transaction does not have an accounting effect. (Use Sales Revenue account for all revenue) Assets Liabilities Equity Transactions: Account Amount Account Amount Account Amount December 31, 2022 Adjustment: Using Percent of Sales method, estimated bad debts to Allowance for Doubtful Accounts be $1,000. The current Allowance account is empty. -$1,000 Bad Debts Expense -$1,000 March 15, 2023 Catered wedding for clients Jake and Sara Crews. Invoice for $3,500 was mailed to clients. May 11 Catered graduation party for Susan Reid for $2,250. Invoice was delivered at end of the evening. September 28 Received payment from Susan Reid for total due. November 1 Received $1,500 partial payment from Jake and Sara Crews. December 31, 2023 Adjustment: Bad debts from this year's sales are estimated to be 25% of total sales (round to the nearest dollar). February 29, 2024 Catered leap year birthday party for Brandon Boyles' 24th (or 6th) birthday. Invoice for $2,800 was delivered to Melanie Boyles. March 15 Determined that Jake and Sara Crews will be unable to pay the remaining debt owed. Account must be written off. Accounts Receivable -$2,000 $2,000 Total Assets -$1,000 Total Liabilities $0 Total Equity -$1,000 What is the current balance of Accounts Receivable? What is the current balance of Allowance for Doubtful Accounts? Langston Hayes runs a part-time catering service. All sales are billed to clients with a credit terms that stipulate payment must be received 30 days after the invoice is received. The Allowance method for bad debts is used for any accounts deemed uncollectible. Analyze the following selected transactions and record the account names and amounts affected. Leave all fields blank if transaction does not have an accounting effect. (Use Sales Revenue account for all revenue) Assets Liabilities Equity Transactions: Account Amount Account Amount Account Amount December 31, 2022 Adjustment: Using Percent of Sales method, estimated bad debts to Allowance for Doubtful Accounts be $1,000. The current Allowance account is empty. -$1,000 Bad Debts Expense -$1,000 March 15, 2023 Catered wedding for clients Jake and Sara Crews. Invoice for $3,500 was mailed to clients. May 11 Catered graduation party for Susan Reid for $2,250. Invoice was delivered at end of the evening. September 28 Received payment from Susan Reid for total due. November 1 Received $1,500 partial payment from Jake and Sara Crews. December 31, 2023 Adjustment: Bad debts from this year's sales are estimated to be 25% of total sales (round to the nearest dollar). February 29, 2024 Catered leap year birthday party for Brandon Boyles' 24th (or 6th) birthday. Invoice for $2,800 was delivered to Melanie Boyles. March 15 Determined that Jake and Sara Crews will be unable to pay the remaining debt owed. Account must be written off. Accounts Receivable -$2,000 $2,000 Total Assets -$1,000 Total Liabilities $0 Total Equity -$1,000 What is the current balance of Accounts Receivable? What is the current balance of Allowance for Doubtful Accounts?
Expert Answer:
Answer rating: 100% (QA)
Here are the account names and amounts affected for the selected transactions 1 December 31 2022 Acc... View the full answer
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Posted Date:
Students also viewed these accounting questions
-
Gather information: Review the financial data provided for John Williams, include $250,000 in sales and $110,000 in expenses. Please note the purchase of office furniture, a 7-year property, costing...
-
Can Someone please show me an example of an excel model for this problem in Derivatives On 3 March 2020, five-year credit default swaps (CDS) on the senior US dollar denominated debt of ANZ Banking...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
Are the statements in (a) and (b) below saying the same thing? (Hint: think about the tradeoffs between concerns of intra- and intergenerational equity.) (a) Sustainability is principally about...
-
Consider the condenser in Problem 9.42. Find the specific energy and exergy that are given out, assuming an ambient at 20oC. Find also the specific exergy destruction in the process.
-
Design a layout on a 2 x 3 grid that satisfies thesepreferences. Department A Department B Department C Department D Department E O XAXI Department
-
What are the most significant components of the audit expectation gap? Briefly discuss potential or existing actions by the audit profession aimed at closing these gaps.
-
Summary information from the financial statements of two companies competing in the same industry follows. Required 1. For both companies compute the (a) Current ratio, (b) Acid-test ratio, (c)...
-
1. Find the Payback period for the following project: Project X Initial Outlay $8,610 Year 1 $3,190 Year 2 $3,290 Year 3 $3,750 Year 4 $7,470 The answer should be calculated to two decimal places....
-
Aircraft Parameters: 1. 2. - - - - 3,200 lb aircraft weight during cruise Engine produces 260 HP at Sea Level 125 HP is required to fly level at 7,000 feet and 150 kt What is the estimated climb rate...
-
Q1: Graph the equation y = 2x + 6 by finding the x- and y-intercepts and a check point. Show your calculation of the x- and y-intercepts, and check point. In your graph, label the intercepts. Q2:...
-
If you owned 6 0 0 shares of Peloton stock and sold all your shares at the closing price on May 2 7 , 2 0 2 2 , how much would you have received? ( Show calculations ) it doesn't matter when you...
-
Where can innovations take an organization in the future? How will the changes from innovation reach a company customers? How can the recommendations for innovation affect an organization competitive...
-
What amount will be paid in full settlement of Invoice 2 2 3 9 2 , assuming that credit for returns and allowances was received prior to payment and that the invoice was paid within the discount...
-
What is the best method to determine an improvement curve slope? Which situation would you use improvement curve analysis to evaluate proposed costs? When is it most appropriate to document or model...
-
Dont use any Ai site cource hero bartleby for answering What isthe definition of accounting? 1 answer
-
Refrigerant R-12 at 30C, 0.75 MPa enters a steady flow device and exits at 30C, 100 kPa. Assume the process is isothermal and reversible. Find the change in availability of the refrigerant.
-
Net realizable value and gross profit joint cost allocation Refer to the data in Exercise 18-1. Exercise 18-1 Physical units and sales value joint cost allocation Featherweight Company makes sterile...
-
Joint product costing A plastics manufacturer produces three grades of bulk plastic in a joint production process. Total joint costs are $66,000. Each of the products requires some process- ing...
-
Basic joint product costing Below are production and sales data for three joint products. Joint costs are $35,000. Production Selling Cost After Product Quantity Price Split-Off Sales Quantity M1...
Study smarter with the SolutionInn App