Question
Option #2:Journalizing Transactions The following was taken from the records of Wesley Branch, Co in the year ending December 31, 20x7. Journalize the following transactions
Option #2:Journalizing Transactions
The following was taken from the records of Wesley Branch, Co in the year ending December 31, 20x7. Journalize the following transactions in an Excel spreadsheet for year-end 20x7 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $10,000 on January 1, 20x7. The assignment template is attached below.
Label the transactions below as journal entries #1 to #4, along with the dates of the entries:
- February 20, 20x7: Wrote off Johnson account: $300.
- May 20, 20x7: Received $360 as partial payment on the $650 account receivable due from Andrews.
- August 10, 20x7: Received $300 from Johnson on the account written off on February 20, 20x7.
- September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Masterson: $325; Benson: $320; Ishira: $450.
December 31, 20x7: Wesley Branch prepared the following aging schedule for it accounts receivables:
- $115,000 of Accounts Receivable (A/R) are 0-30 days late: 2.5% probability of being uncollectible.
- $45,000 of A/R are 31-60 days late: 12% probability of being uncollectible.
- $17,000 of A/R are 61-90 days late: 25% probability of being uncollectible.
- $3,500 of A/R are later than 90 days late: 60% probability of being uncollectible.
Instructions:
Using the Excel spreadsheet template provided for this assignment, submit the following items:
- The four journal entries (1 to 4 above) with a one-sentence description for each
- The T-account for the allowance for doubtful accounts
- The journal entry to record bad debt expense
- The balance sheet presentation of the net realizable value of accounts receivable
Review the grading rubric to understand how you will be graded on this assignment. Review Module 5 Part 2 Lecture, Section 1 for examples related to your Critical Thinking assignment for this week. Reach out to your instructor if you have questions about the assignment.
Note: The download the template required for this assignment is located in the Module 5 folder.
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