Recording Uncollectible Receivables Fan-Tadic Sports Gear You have est been hired as the accountant for Fan-Tastic Sports Gear, a wholesaler of sporting Goods and apparel. The previous accountant et abruply, and an accounting Wer has been drafting the journal entries since January. You are examining the accounting records before nating the married to the state. Some of the accounts receive transactions that you are reviewing follow ACCOUNTING EQUATION 11 71 Next > Cd My Workmore Checy Woneromang 150 PM B N M L e nin dolinvokerassignments takeAssignmentSessionLocator assignment-takeinprogress=false Calculator Feb. 15 500 counts Receivable Healthy Running Bad Debt Expense Sales Accounts Receivable Four Seasons Sportswea Bad Det Expense Mr. 4 22 2.200.00 Debt Expense 2.300.00 13 554000 31 Cash Accounts Receivable-Baris Best Gear Bad Debt Expense Accounts Receive Running Accounts Receivable-The Loder Room 20,320,00 5.750.00 Accountsvables Sports Acontece G ear Accounts Recente rar 2- Nex) Check My Work more Check My Work uses remaning O e CO 2 OPE Calculator Chart of Accounts CHART OF ACCOUNTS Fan-Tastic Sports Gear General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable Healthy Running 122 Accounts Receivable-The Locker Room EXPENSES 123 Accounts Receivable-cus Sports 124 Accounts Receivable-Get Your Gear 125 Accounts Receivable-Four Seasons Sportswear 125 Accounts Receivable-Ready-2-00 127 Accounts Receivable Bart's Best Gear 132 Notes Receivable-Fast Feet Co. 135 interest Receivable 141 Merchandise inventory 145 Office Supplies 510 Cost of Merchandise Sold 520 Sale Sales Expense 521 Advertising Expense 520 Delivery Expense 524 Repairs Expense 529 Sing penses 530 Office Stais pense 531 Rent Expense 530 Depreciation Expense On Equipment Check My Work 1 more Check My Worse remaining ANDA 151 PM 12/1/2019 Io- TE Calculator 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Office Equipment 194 Accumulated Depreciation Onice Equipment 522 Depreciation Expense-Office Equipment 533 Insurance Experte 534 Office Supplies Expense 536 Credit Card Expense 597 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense LABILITIES 210 Accounts Payable 211 Salones Payable 213 Sales Tax Payable 214 b est Payable 215 Notes Payable EQUITY 310 Rama Gupta, Capital 311 Rama QuotaDrawing Recording Uncollectible Receivables Check My Work 1 more Check My Work uses remaining M Recording Uncollectible Receivables Review the accounts receivable transactions shown in the general journal on the Fan-Tastic Sports Gear pure w hefowing on How does the company appear to be handling uncollectible receivables? Grect write-off method aging of accounts receivable method face method percent of sales method deciding whether Sports Gear is handing uncollectie receivables 2. You have made the following observations during your review of the accounting records appropriately, which of these observations are key factors in your decision? Check The company sells primary to smaller businesses who are more to have cash flow problems An analysis of the company's accounts receivable shows more accounts will be c h ant year Collection agencies are routinely used Baddebitis rising expense Check My Work 1 more Check My Workestening G BNM once method percent of sales method 2. You have made the following bervations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear is handling uncollectible cables appropriately. Which of these observations are key factors in your decision? Check all that apply The company seis primarily to smaller businesses, who are more likely to have cash flow problems An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year Collection agencies are routinely used Bad debt is a sing perse Company as you were $2.900,000 and are expected to increase by 350 000 huis year Most of the company's sales are on account 3 Ane making the observations listed in 21 you have recommended that Fantastic Sports Ceause the bado De Revised Journal Entries Check My Workmore Chexy Work emang VD4 4 1:51 PM 000 1. Assume that Fan-Tastic Sports Gear will be using the lowance method this year Seed any accounts. Check all that apply othewing t should be added to the date Net Retrable Value of Receivables Total Credit Sales Estimate for Uncolectible Accounts Balance of Aging Accounts Allowance for Doubtful Accounts 2 Fince the joumal entries shown on the Fan-Tastic Sports Gear panel and make any necessary changes oferte Chart of Accounts for the exact wording of account stes. You may also use any items from the preceding list needed. ACCOUNTING EQUATION Check My Work 1 more Check My Works remaining AVDE 2017 1 KL. Calculator Note Receivable in the trial balance for March, you see that Notes Receivable FastFeet C has a negative balance of 5135, which would seem to indicate that FastFeet pad too much Looking back through the journal entries for March you find that on March 19 the accounting intem recorded receipt of 54635 in payment of this not recevable. Further investigation reveals that on November 19, 20Y1 this not receivable was received from FastFeet Cotor 4.500. You can find no additional information about this note in the accounting records. Assume a 360 day year Using the preceding information compute the term and the interest of the not receive from Fast Foot 1. Term of the note Next > Oeck My Work 1 more My Work temang - VD4 352PM 2019 P Hj M in the trubatance for March, you see that es Recette Fast Feet Co has a negative balance of $135, which would seem to indicate that feet paid to much Looking back through the journal entre for March, you find that on March 19 the accounting intem recorded receipt of 4635 in payment of this not receivable. Further investigation reveals that on November 19, 2011, this not receivable was received from Fast Feet Color 54.500 You can find a l l on about this note in the accounting records. Assume a 360 day your Ung the preceding information compute them and the interest rate of the receive from Fast Feet 1 Term of the note 2. Interest of the note m ent on M t 2011 Journalce the entry needed to record information about the Rulere Chart of Accounts of exact wording of c om round al amount to the ACCOUNTING EQUATION UD 4 0 K L N 3. Journalze the entry needed to record information about the not receivable bom Fast Feel for the yw 2011. Assume that the entry on November 19, 2011 is correct Refer to the Chart of Accounts lead wording of accounts. Round al amounts to the read er JOUL ACCOUNTING EQUATION y 2012 A Chart on commended to collection of the new Accounts of exact wording of accounts Round all amount to the r on March o le ACCOUNTING EQUATION K Calculator 4 Journalize the entry needed to record collection of the nate at maturity on March 19 2012 Assume that the only on November 19 2017 comed Accounts of exact wording of account titles. Round all amounts to the nearest dolar erohe Chut of ACCOUNTING EQUATION CET Final Questions Fan-Tastic Sports Gear recorded 52.900.000 of sales last year and project sales to increase by 5350 000 in the current year. Last year 80% of sales were on account with over 300 customer accounts Bad debit pense was $26.187 1. Assume that Fans Sports Gear used the allowance method last year, and the towance account at the end of the year had a debt balance of 82.190The company estimated uncolette accounts pense using the percent of credits method and expected 0.75% of credit to be come What is the amount of the Next > Check My Work 1 more Check My Works remaining VD4 * 001 Jul 0P Final Questions to increase by 5350,000 in the current year. Last years of w on account Fan-Tastic Sports et recorded 2.500.000 of last year and over 300 customer accounts, Bad expense was 26.187 1. Assume that Fans Sports Geared the wance method last year, and the account the end of the year had a n R.190 The company estimated colectiile accounts expense using the percent of credit sal method and expected 75of credits to be collectible. What is the amount of the adjusting entry to provide for doit accounts on December 317 Round of computations to the solar 5 2 Hugher Tastic Sports come have the one o n the there ? E t here is no charge) by S 3. Ung the towance method th t of the cats would be on which financial statement Next) My Work 1 more Che e se L'OP 7Nm n MT: Recording Uncollectible Receivables Fan-Tadic Sports Gear You have est been hired as the accountant for Fan-Tastic Sports Gear, a wholesaler of sporting Goods and apparel. The previous accountant et abruply, and an accounting Wer has been drafting the journal entries since January. You are examining the accounting records before nating the married to the state. Some of the accounts receive transactions that you are reviewing follow ACCOUNTING EQUATION 11 71 Next > Cd My Workmore Checy Woneromang 150 PM B N M L e nin dolinvokerassignments takeAssignmentSessionLocator assignment-takeinprogress=false Calculator Feb. 15 500 counts Receivable Healthy Running Bad Debt Expense Sales Accounts Receivable Four Seasons Sportswea Bad Det Expense Mr. 4 22 2.200.00 Debt Expense 2.300.00 13 554000 31 Cash Accounts Receivable-Baris Best Gear Bad Debt Expense Accounts Receive Running Accounts Receivable-The Loder Room 20,320,00 5.750.00 Accountsvables Sports Acontece G ear Accounts Recente rar 2- Nex) Check My Work more Check My Work uses remaning O e CO 2 OPE Calculator Chart of Accounts CHART OF ACCOUNTS Fan-Tastic Sports Gear General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Petty Cash 610 Interest Revenue 121 Accounts Receivable Healthy Running 122 Accounts Receivable-The Locker Room EXPENSES 123 Accounts Receivable-cus Sports 124 Accounts Receivable-Get Your Gear 125 Accounts Receivable-Four Seasons Sportswear 125 Accounts Receivable-Ready-2-00 127 Accounts Receivable Bart's Best Gear 132 Notes Receivable-Fast Feet Co. 135 interest Receivable 141 Merchandise inventory 145 Office Supplies 510 Cost of Merchandise Sold 520 Sale Sales Expense 521 Advertising Expense 520 Delivery Expense 524 Repairs Expense 529 Sing penses 530 Office Stais pense 531 Rent Expense 530 Depreciation Expense On Equipment Check My Work 1 more Check My Worse remaining ANDA 151 PM 12/1/2019 Io- TE Calculator 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Office Equipment 194 Accumulated Depreciation Onice Equipment 522 Depreciation Expense-Office Equipment 533 Insurance Experte 534 Office Supplies Expense 536 Credit Card Expense 597 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense LABILITIES 210 Accounts Payable 211 Salones Payable 213 Sales Tax Payable 214 b est Payable 215 Notes Payable EQUITY 310 Rama Gupta, Capital 311 Rama QuotaDrawing Recording Uncollectible Receivables Check My Work 1 more Check My Work uses remaining M Recording Uncollectible Receivables Review the accounts receivable transactions shown in the general journal on the Fan-Tastic Sports Gear pure w hefowing on How does the company appear to be handling uncollectible receivables? Grect write-off method aging of accounts receivable method face method percent of sales method deciding whether Sports Gear is handing uncollectie receivables 2. You have made the following observations during your review of the accounting records appropriately, which of these observations are key factors in your decision? Check The company sells primary to smaller businesses who are more to have cash flow problems An analysis of the company's accounts receivable shows more accounts will be c h ant year Collection agencies are routinely used Baddebitis rising expense Check My Work 1 more Check My Workestening G BNM once method percent of sales method 2. You have made the following bervations during your review of the accounting records. In deciding whether Fan-Tastic Sports Gear is handling uncollectible cables appropriately. Which of these observations are key factors in your decision? Check all that apply The company seis primarily to smaller businesses, who are more likely to have cash flow problems An analysis of the company's accounts receivable shows more accounts will be uncollectible than last year Collection agencies are routinely used Bad debt is a sing perse Company as you were $2.900,000 and are expected to increase by 350 000 huis year Most of the company's sales are on account 3 Ane making the observations listed in 21 you have recommended that Fantastic Sports Ceause the bado De Revised Journal Entries Check My Workmore Chexy Work emang VD4 4 1:51 PM 000 1. Assume that Fan-Tastic Sports Gear will be using the lowance method this year Seed any accounts. Check all that apply othewing t should be added to the date Net Retrable Value of Receivables Total Credit Sales Estimate for Uncolectible Accounts Balance of Aging Accounts Allowance for Doubtful Accounts 2 Fince the joumal entries shown on the Fan-Tastic Sports Gear panel and make any necessary changes oferte Chart of Accounts for the exact wording of account stes. You may also use any items from the preceding list needed. ACCOUNTING EQUATION Check My Work 1 more Check My Works remaining AVDE 2017 1 KL. Calculator Note Receivable in the trial balance for March, you see that Notes Receivable FastFeet C has a negative balance of 5135, which would seem to indicate that FastFeet pad too much Looking back through the journal entries for March you find that on March 19 the accounting intem recorded receipt of 54635 in payment of this not recevable. Further investigation reveals that on November 19, 20Y1 this not receivable was received from FastFeet Cotor 4.500. You can find no additional information about this note in the accounting records. Assume a 360 day year Using the preceding information compute the term and the interest of the not receive from Fast Foot 1. Term of the note Next > Oeck My Work 1 more My Work temang - VD4 352PM 2019 P Hj M in the trubatance for March, you see that es Recette Fast Feet Co has a negative balance of $135, which would seem to indicate that feet paid to much Looking back through the journal entre for March, you find that on March 19 the accounting intem recorded receipt of 4635 in payment of this not receivable. Further investigation reveals that on November 19, 2011, this not receivable was received from Fast Feet Color 54.500 You can find a l l on about this note in the accounting records. Assume a 360 day your Ung the preceding information compute them and the interest rate of the receive from Fast Feet 1 Term of the note 2. Interest of the note m ent on M t 2011 Journalce the entry needed to record information about the Rulere Chart of Accounts of exact wording of c om round al amount to the ACCOUNTING EQUATION UD 4 0 K L N 3. Journalze the entry needed to record information about the not receivable bom Fast Feel for the yw 2011. Assume that the entry on November 19, 2011 is correct Refer to the Chart of Accounts lead wording of accounts. Round al amounts to the read er JOUL ACCOUNTING EQUATION y 2012 A Chart on commended to collection of the new Accounts of exact wording of accounts Round all amount to the r on March o le ACCOUNTING EQUATION K Calculator 4 Journalize the entry needed to record collection of the nate at maturity on March 19 2012 Assume that the only on November 19 2017 comed Accounts of exact wording of account titles. Round all amounts to the nearest dolar erohe Chut of ACCOUNTING EQUATION CET Final Questions Fan-Tastic Sports Gear recorded 52.900.000 of sales last year and project sales to increase by 5350 000 in the current year. Last year 80% of sales were on account with over 300 customer accounts Bad debit pense was $26.187 1. Assume that Fans Sports Gear used the allowance method last year, and the towance account at the end of the year had a debt balance of 82.190The company estimated uncolette accounts pense using the percent of credits method and expected 0.75% of credit to be come What is the amount of the Next > Check My Work 1 more Check My Works remaining VD4 * 001 Jul 0P Final Questions to increase by 5350,000 in the current year. Last years of w on account Fan-Tastic Sports et recorded 2.500.000 of last year and over 300 customer accounts, Bad expense was 26.187 1. Assume that Fans Sports Geared the wance method last year, and the account the end of the year had a n R.190 The company estimated colectiile accounts expense using the percent of credit sal method and expected 75of credits to be collectible. What is the amount of the adjusting entry to provide for doit accounts on December 317 Round of computations to the solar 5 2 Hugher Tastic Sports come have the one o n the there ? E t here is no charge) by S 3. Ung the towance method th t of the cats would be on which financial statement Next) My Work 1 more Che e se L'OP 7Nm n MT
