Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 1 Reconcile the 2020 opening balance in Accounts Receivable to the $568,800 ending balance on the controller's aged listing Accounts Receivable Reconciliation $ V

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Part 1 Reconcile the 2020 opening balance in Accounts Receivable to the $568,800 ending balance on the controller's aged listing Accounts Receivable Reconciliation $ V $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit Am O HP Question 5 of 7 6/15 Flounder Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $485,000 and an Allowance for Doubtful Accounts of $40,000. Flounder recognized credit sales during the year of $6,670,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,400 of accounts that were deemed to be uncollectible, although one customer whose $4,200 account had been written off surprised management by paying the amount in full in late September. Including this surprise receipt. $6,554.000 cash was collected on account in 2020 To assess the reasonableness of the allowance for doubtful accounts, the controller prepared the following aged listing of the receivables at December 31, 2020: Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days Amount $279.500 124.000 83,000 39,000 18,700 Probability of Collection 98% 92% 80% 74% 50% 075 24.600 $568,800 Part 1 o 2 g E Question 5 of 7 6/15 E Part 2 Prepare the adjusting entry to bring the Allowance for Doubtful Accounts to its proper balance at year end. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account tities and enter "O" for the amounts) Account Titles and Explanation Debit Credit Date Dec. 31 eTextbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later Question Part Score Part 3 BI Question 5 of 7 > 6/15 !!! Part 3 Show how accounts receivable would be presented on the December 31, 2020 statement of financial position. Flounder Corp. Statement of financial position (Partial) $ (net) $ e Textbook and Media List of Accounts Save for Lates Attempts: 0 of 3 used Submit Answer Question Part Score --/3 Part 4 6 / 15 List of Accounts Save for Later Attempts: 0 of 3 used Submit Answer Question Part Score --/3 Part 4 What is the dollar effect of the year-end bad debt adjustment on the before-tax income? The year-end bad debt adjustment would before-tax income $ e Textbook and Media List of Accounts Save for later Attempts: 0 of 3 used Submit Answer Question Part Score -12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Regulation In Japan Evolution And Development From 2001 To 2015

Authors: Masatsugu Sanada, Yoshihiro Tokuga

1st Edition

0367221071, 9780367221072

More Books

Students also viewed these Accounting questions

Question

How would you handle the difficulty level of the texts?

Answered: 1 week ago