Question
Percentage of Sales Method: The Miko Company Case On January 1, 2014, the Miko Company had the following accounts on its books: Accounts Receivable: $120,000
Percentage of Sales Method: The Miko Company Case On January 1, 2014, the Miko Company had the following accounts on its books: Accounts Receivable: $120,000 (debit) Allowance for Uncollectable Accounts: $4,200 (credit) Assignment Template attached below During the year 2014, credit sales were $260,000 and collections on accounts were $220,000. The following transactions occurred during 2014: January 11, 2014: Wrote off Moras account, $1,200. August 30, 2014: Wrote off MyLines account, $250. November 20, 2014: Sophy pays $600 of her $1,600 account receivables due. December 1, 2014: Received $3,000 payment on Smiths accounts receivable, which was previously written off and needs to be restated. December 31, 2014: In an adjusting entry, Miko Company recorded the provision for uncollectable accounts at 1.5% of credit sales for the year. Instructions: Submit the following items in an Excel spreadsheet, labeling each as 1, 2, 3, and 4: The four journal entries (1 to 4 above) with a one-sentence description The allowance for doubtful accounts T-account The journal entry to record bad debt expense The balance sheet presentation of net realizable value, including gross accounts receivables of $42,000
| Miko Company Company- December 31, 2014 | |||||||||
| Question 1: | |||||||||
| Journal# | Date | Account Title | Debit | Credit | |||||
| a | 1-Jan | Allowance for doutful accounts | |||||||
| Mora- Accounts receivable | |||||||||
| b | |||||||||
| 30-Aug | Allowance for doutful accounts | ||||||||
| Accounts Receivables MyLine | |||||||||
| c | 20-Nov | Cash | |||||||
| Allowance for doutful accounts | |||||||||
| Sophy- Accounts receivable | |||||||||
| d | 1-Dec | Smith- Accounts receivable | |||||||
| Allowance for doutful accounts | |||||||||
| Cash | |||||||||
| Jones- Accounts receivable | |||||||||
| Question 2 | |||||||||
| Dates | T-Account Allow | ||||||||
| Debit | Credit | ||||||||
| BB | |||||||||
| 1-Jan | |||||||||
| 30-Aug | |||||||||
| 20-Nov | |||||||||
| 1-Dec | |||||||||
| Bad Debt Expense= | |||||||||
| Ending Balance | |||||||||
| Calculations: | Bad debt expense= | ||||||||
| Credit sales for the year are | |||||||||
| Percentage of sales are bad debt | |||||||||
| Ending balance= Adding credits/subtracting debits | |||||||||
| Question 3 | |||||||||
| Date | Account Title | Debit | Credit | ||||||
| 31-Dec | Bad Debt Expense | ||||||||
| Allowance for doutful accounts | |||||||||
| Question 4 | |||||||||
| Balance Sheet Presentaion | |||||||||
| Gross Accounts Receivables | |||||||||
| Ending Blance of Allowance for Doubtbul Accounts | |||||||||
| Net Realizable Balance | |||||||||
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Microeconomics Theory And Applications
Authors: Edgar K. Browning, Mark A. Zupan
10th Edition
0470128917, 9780470128916
