PA8-1 (Algo) Recording Accounts Receivable Transactions Using the Aging Method [LO 8-2] Henderson Incorporated was formed...

Transcribed Image Text:

PA8-1 (Algo) Recording Accounts Receivable Transactions Using the Aging Method [LO 8-2] Henderson Incorporated was formed in 2015 with the merger of B&H Corporation and PWW Foods Incorporated. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): Accounts Receivable Debits $ 1,170 Credits Allowance for Doubtful Accounts Sales (assume all on credit) $47 18,800 Required: 1. Assume Henderson uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Henderson uses the aging of accounts receivable method and estimates that $85 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Assume instead Henderson's uses the aging of accounts receivable method and estimates that $85 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense assuming Henderson's unadjusted balance in Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $25. 4. If one of Henderson's customers declared bankruptcy, what journal entry would be used to write off its $15 balance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume Henderson uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.) View transaction list Show less a PA8-1 (Algo) Recording Accounts Receivable Transactions Using the Aging Method [LO 8-2] Henderson Incorporated was formed in 2015 with the merger of B&H Corporation and PWW Foods Incorporated. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): Accounts Receivable Debits $ 1,170 Credits Allowance for Doubtful Accounts Sales (assume all on credit) $47 18,800 Required: 1. Assume Henderson uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. 2. Assume instead Henderson uses the aging of accounts receivable method and estimates that $85 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Assume instead Henderson's uses the aging of accounts receivable method and estimates that $85 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense assuming Henderson's unadjusted balance in Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $25. 4. If one of Henderson's customers declared bankruptcy, what journal entry would be used to write off its $15 balance? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume Henderson uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.) View transaction list Show less a