Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PROBLEM 1 2 1 A) The Kiley Company had a $900 credt balance in Allowance for Doubtlul Accounts at December 31, 2018. before the current

image text in transcribed
PROBLEM 1 2 1 A) The Kiley Company had a $900 credt balance in Allowance for Doubtlul Accounts at December 31, 2018. before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $120,000 1% 1-30 days past due 12,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8.000 30% Total Accounts Receivable $155.00 Instructions (a) Prepare the adjusting entry on December 31, 2018, to recognize bad debts expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $700 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts (c) Assume that the company has a policy of providing for bad debts at the rate of 1% of Sales, that Sales for 2018 were $500,000, and that Allowance for Doubtful Accounts had a $550 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts. B) 1) Sept. 12 - Determined that the account of Joe Vatt for 1,200.00 is uncollectible. 2) Nov. 15 - Received a check in the amount of $ 700.00 from Joe Watt. Record the above two events. c) Prepare the following journal entries to record the following transactions June 1, 2013 - Received a 9,000, 12%, 1 year note from Mr. Frost At The Time of SALE Dec 31, 2018 Accrued interest on the above note June 1, 2019-Mr. Frost paid the full amount plus interest Alle cate and does not pay a future Assume we are (6) Assume that on June 1, 2018 - Mr. Frost deshonors expecting to collect in 6 - but we are not expecting to collect in the future . (c) The some on

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_2

Step: 3

blur-text-image_3

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

Safety Health And Environmental Auditing A Practical Guide

Authors: Simon Watson Pain

2nd Edition

1138557153, 9781138557154

More Books

Students also viewed these Accounting questions