Question
On September 30, 2020, the balance in Siakam Supplies Limiteds (SSL) accounts receivable account was $87,340 and the allowance for doubtful accounts had a credit
On September 30, 2020, the balance in Siakam Supplies Limiteds (SSL) accounts receivable account was $87,340 and the allowance for doubtful accounts had a credit balance of $5,500. SSL uses the aging of accounts receivable method to estimate its uncollectible accounts and applies percentages based on the age of the accounts receivable at year-end, as follows:
- 0-60 days: 5%
- 61-90 days: 15%
- Over 90 days: 25%
In October, SSL had the following transactions pertaining to receivables:
Oct | 11 | Received bankruptcy notice from customer Green Gardens, Inc.; balance receivable of $6,140 was written off. | |
17 | Credit sales totaling $17,000 was billed to customers. | ||
31 | Prepared the adjusting entry related to bad debts. The aging of accounts receivable at October 31, 2020 was as follows: |
0 - 60 days: | $55,400 | ||
61 - 90 days: | $20,600 | ||
> 90 days: | $7,200 |
Required:
a. Record SSLs transactions and required adjustments for October. Round to the nearest dollar.
Date | Account | Debit | Credit |
October 11 | Blank 1. Fill in the blank, read surrounding text. | Blank 2. Fill in the blank, read surrounding text. | |
Blank 3. Fill in the blank, read surrounding text. | Blank 4. Fill in the blank, read surrounding text. |
Date | Account | Debit | Credit |
October 17 | Blank 5. Fill in the blank, read surrounding text. | Blank 6. Fill in the blank, read surrounding text. | |
Blank 7. Fill in the blank, read surrounding text. | Blank 8. Fill in the blank, read surrounding text. |
Date | Account | Debit | Credit |
October 31 | Blank 9. Fill in the blank, read surrounding text. | Blank 10. Fill in the blank, read surrounding text. | |
Blank 11. Fill in the blank, read surrounding text. | Blank 12. Fill in the blank, read surrounding text. |
Show your calculations for the adjustment recorded on October 31 by filling in the following blanks (enter absolute values only):
Desired ending balance of the AFDA account: | $ Blank 13. Fill in the blank, read surrounding text. | |
Beginning balance of the AFDA account: | $ Blank 14. Fill in the blank, read surrounding text. | |
Accounts receivable written-off: | Blank 15. Fill in the blank, read surrounding text. | Blank 16. Fill in the blank, read surrounding text. |
Required adjustment: | $ Blank 17. Fill in the blank, read surrounding text. |
b. Assume the allowance doubtful account had a debit balance of $6,200 on September 30, 2020. Record the adjusting entry recorded on October 31. Round to the nearest dollar.
Date | Account | Debit | Credit |
October 31 | Blank 18. Fill in the blank, read surrounding text. | Blank 19. Fill in the blank, read surrounding text. | |
Blank 20. Fill in the blank, read surrounding text. | Blank 21. Fill in the blank, read surrounding text. |
Show your calculations for the adjustment recorded on October 31 by filling in the following blanks (enter absolute values only):
Desired ending balance of the AFDA account: | $ Blank 22. Fill in the blank, read surrounding text. | |
Beginning balance of the AFDA account: | $ Blank 23. Fill in the blank, read surrounding text. | |
Accounts receivable written-off: | Blank 24. Fill in the blank, read surrounding text. | Blank 25. Fill in the blank, read surrounding text. |
Required adjustment: | $ Blank 26. Fill in the blank, read surrounding text. |
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