Question: 4 Fleming Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2013, and December 31, 2014, appear below: 12/31/13 12/31/14 Net Credit Sales $400,000 $500,000 Accounts Receivable 60,000 80,000 Allowance for Doubtful Accounts 5,200 ? Instructions (a) Record the following events in 2014. Aug. 10 Determined that the account of Sue King for $800 is uncollectible. Sept. 12 Determined that the account of Tom Young for $3,700 is uncollectible. Oct. 10 Received a check for $500 as payment on account from Sue King, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November. Nov. 15 Received a check for $300 from Sue King as payment on her account. (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2014. (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2014? Question: 5 Zimmer Company sold the following two machines in 2020: Machine A Machine B Cost $76,000 $80,000 Purchase date July 1, 2016 January 1, 2017 Useful life 8 years 5 years Salvage value $4.000 $4.000 Depreciation method Straight-line Double-declining-balance Date sold July 1, 2020 August 1, 2020 Sales price $35,000 $16,000 Instructions 1. Pass the necessary journal entries to record purchase of the machine A and Machine B on 1 July 2016 and 1 January, 2017 respectively. 2. Calculate depreciation of the machine A and machine B for the year 2016, 2017, 2018, 2019. 3. Journalize all entries required to update depreciation and record the sales of the two assets in 2020. Question: 1 On December 1, 2020, G Company had the following account balances. Cash Credit $ 2,200 Accounts receivable Inventory Supplies Equipment Debit $ 7,200 Accumulated Depreciation- Equipment 4,600 Accounts Payable 12,000 Salaries and Wages Payable 1,200 Owner's Capital 22,000 $47.000 4,500 1,000 39,300 $47.000 During December, the company completed the following summary transactions. December 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10,n/60. Appropriate party paid freight on purchases $50 December 9 Received credit from Tiger Co. for merchandise returned $100. December 10 Sold merchandise on account to John traders $600, FOB shipping point, terms 2/15, n/30. The cost of goods sold is $400. Appropriate party paid freight cost $20. December 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear S450, FOB destination terms 3/10, 1/30. Appropriate party paid freight on purchases $50. December 16 Paid Tiger Co. in full. December 17 Received credit from Classic Sportswear for merchandise returned $50. December 20 Made sales on account to Chenzi traders $500, FOB Destination, terms 2/10, 1/30. Cost of goods sold is $300 Appropriate party paid freight cost $20. December 21 Paid Classic Sportswear in full. December 23 Goods returned from Chenzi traders $100. The cost of goods sold is $30 December 30 Received payments from Chenzi traders in full. December 31 Received payments from John traders in full. Instructions a. Journalize the December transactions using both perpetual and periodic inventory system in a table side by side. b. Enter the December 1 balances in the ledger and post the December transactions and prepare a trail balance on December 31 (using perpetual inventory system) Question: 1 On December 1, 2020, G Company had the following account balances. Debit Cash $ 7,200 Accumulated Depreciation Equipment Accounts receivable 4,600 Accounts Payable Inventory 12,000 Salaries and Wages Payable Supplies 1,200 Owner's Capital Equipment 22,000 $47.000 Credit $ 2,200 4,500 1,000 39,300 $47.000 During December, the company completed the following summary transactions. December 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, 1/60. Appropriate party paid freight on purchases $50 December 9 Received credit from Tiger Co. for merchandise returned $100. December 10 Sold merchandise on account to John traders $600, FOB shipping point, terms 2/15, n/30. The cost of goods sold is $400. Appropriate party paid freight cost $20. December 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear S450, FOB destination, terms 3/10, 1/30. Appropriate party paid freight on purchases $50. December 16 Paid Tiger Co. in full. December 17 Received credit from Classic Sportswear for merchandise returned $50. December 20 Made sales on account to Chenzi traders $500, FOB Destination, terms 2/10, 1/30. Cost of goods sold is $300 Appropriate party paid freight cost $20. December 21 Paid Classic Sportswear in full. December 23 Goods returned from Chenzi traders $100. The cost of goods sold is $30 December 30 Received payments from Chenzi traders in full. December 31 Received payments from John traders in full. Instructions a. Journalize the December transactions using both perpetual and periodic inventory system in a table side by side. b. Enter the December 1 balances in the ledger and post the December transactions and prepare a trail balance on December 31 (using perpetual inventory system) Question: 4 Fleming Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2013, and December 31, 2014, appear below: 12/31/13 12/31/14 Net Credit Sales $400,000 $500,000 Accounts Receivable 60,000 80,000 Allowance for Doubtful Accounts 5,200 ? Instructions (a) Record the following events in 2014. Aug. 10 Determined that the account of Sue King for $800 is uncollectible. Sept. 12 Determined that the account of Tom Young for $3,700 is uncollectible. Oct. 10 Received a check for $500 as payment on account from Sue King, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November. Nov. 15 Received a check for $300 from Sue King as payment on her account. (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2014. (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2014? Question: 5 Zimmer Company sold the following two machines in 2020: Machine A Machine B Cost $76,000 $80,000 Purchase date July 1, 2016 January 1, 2017 Useful life 8 years 5 years Salvage value $4.000 $4.000 Depreciation method Straight-line Double-declining-balance Date sold July 1, 2020 August 1, 2020 Sales price $35,000 $16,000 Instructions 1. Pass the necessary journal entries to record purchase of the machine A and Machine B on 1 July 2016 and 1 January, 2017 respectively. 2. Calculate depreciation of the machine A and machine B for the year 2016, 2017, 2018, 2019. 3. Journalize all entries required to update depreciation and record the sales of the two assets in 2020. Question: 1 On December 1, 2020, G Company had the following account balances. Cash Credit $ 2,200 Accounts receivable Inventory Supplies Equipment Debit $ 7,200 Accumulated Depreciation- Equipment 4,600 Accounts Payable 12,000 Salaries and Wages Payable 1,200 Owner's Capital 22,000 $47.000 4,500 1,000 39,300 $47.000 During December, the company completed the following summary transactions. December 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10,n/60. Appropriate party paid freight on purchases $50 December 9 Received credit from Tiger Co. for merchandise returned $100. December 10 Sold merchandise on account to John traders $600, FOB shipping point, terms 2/15, n/30. The cost of goods sold is $400. Appropriate party paid freight cost $20. December 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear S450, FOB destination terms 3/10, 1/30. Appropriate party paid freight on purchases $50. December 16 Paid Tiger Co. in full. December 17 Received credit from Classic Sportswear for merchandise returned $50. December 20 Made sales on account to Chenzi traders $500, FOB Destination, terms 2/10, 1/30. Cost of goods sold is $300 Appropriate party paid freight cost $20. December 21 Paid Classic Sportswear in full. December 23 Goods returned from Chenzi traders $100. The cost of goods sold is $30 December 30 Received payments from Chenzi traders in full. December 31 Received payments from John traders in full. Instructions a. Journalize the December transactions using both perpetual and periodic inventory system in a table side by side. b. Enter the December 1 balances in the ledger and post the December transactions and prepare a trail balance on December 31 (using perpetual inventory system) Question: 1 On December 1, 2020, G Company had the following account balances. Debit Cash $ 7,200 Accumulated Depreciation Equipment Accounts receivable 4,600 Accounts Payable Inventory 12,000 Salaries and Wages Payable Supplies 1,200 Owner's Capital Equipment 22,000 $47.000 Credit $ 2,200 4,500 1,000 39,300 $47.000 During December, the company completed the following summary transactions. December 5 Purchased golf bags, clubs, and balls on account from Tiger Co. $1,200, FOB shipping point, terms 2/10, 1/60. Appropriate party paid freight on purchases $50 December 9 Received credit from Tiger Co. for merchandise returned $100. December 10 Sold merchandise on account to John traders $600, FOB shipping point, terms 2/15, n/30. The cost of goods sold is $400. Appropriate party paid freight cost $20. December 12 Purchased golf shoes, sweaters, and other accessories on account from Classic Sportswear S450, FOB destination, terms 3/10, 1/30. Appropriate party paid freight on purchases $50. December 16 Paid Tiger Co. in full. December 17 Received credit from Classic Sportswear for merchandise returned $50. December 20 Made sales on account to Chenzi traders $500, FOB Destination, terms 2/10, 1/30. Cost of goods sold is $300 Appropriate party paid freight cost $20. December 21 Paid Classic Sportswear in full. December 23 Goods returned from Chenzi traders $100. The cost of goods sold is $30 December 30 Received payments from Chenzi traders in full. December 31 Received payments from John traders in full. Instructions a. Journalize the December transactions using both perpetual and periodic inventory system in a table side by side. b. Enter the December 1 balances in the ledger and post the December transactions and prepare a trail balance on December 31 (using perpetual inventory system)