Questions 2-5
The following transactions occurred over the months of September to December at Nicole's Getaway Spa (NGS) September Sold spa merchandise to Ashley Welch Beauty for $2,150 on account; the cost of these goods to NGS was $1,048. October Sold merchandise to Kelly Fast Nail Gallery for $598 on account; the cost of these goods to NGS was $278. November Sold merchandise to Raea Gooding Wellness for $448 on account; the cost of these goods to NGS was $260. December Received $1,410 from Ashley Welch Beauty for payment on its account. Required: 1. Prepare journal entries for each of the transactions. Assume a perpetual inventory system 2. Estimate the Allowance for Doubtful Accounts required at December 31, assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 3% two months, 5% three months, 20% more than three months, 30% 3. The Allowance for Doubtful Accounts balance was $54 (credit before the end of period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense 4. Assume the end of the previous year showed net accounts receivable of $870, and net sales for the current year are $9,700. Calculate the accounts receivable turnover ratio 5. Audrey's Mineral Spa has an accounts receivable turnover ratio of 120 times. How does NGS compare to this competitor? Complete this question by entering your answers in the tabs below. Required Required Required Required Required Prepare joumal entries for each of the transactions. Assume a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Date General Journal Debit Credit September Accounts Receivable 2.150 Sales Revenue 2.150 1 2 September Cost of Goods Sold Inventory 1,040 1,040 3 October Accounts Receivable Sales Revenue 590 590 4 October 270 Cost of Goods Sold Inventory 2707 8 9 5 November Accounts Receivable Sales Revenue 4407 4407 6 November Cost of Goods Sold Inventory 260 260 7 December Cash Accounts Receivable 1.410 1410 The following transactions occurred over the months of September to December at Nicole's Getaway Spa (NGS). September Sold spa merchandise to Ashley Welch Beauty for $2,150 on account; the cost of these goods to NGS was $1,040. October Sold merchandise to Kelly Fast Nail Gallery for $590 on account; the cost of these goods to NGS was $270. November Sold merchandise to Raea Gooding Wellness for $440 on account; the cost of these goods to NGS was $260. December Received $1,410 from Ashley Welch Beauty for payment on its account. Required: 1. Prepare journal entries for each of the transactions. Assume a perpetual Inventory system 2. Estimate the Allowance for Doubtful Accounts required at December 31, assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 3%; two months, 5%; three months, 20%; more than three months, 30%. 3. The Allowance for Doubtful Accounts balance was $54 (credit) before the end-of-period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense 4. Assume the end of the previous year showed niet accounts receivable of $870, and net sales for the current year are $9,700. Calculate the accounts receivable turnover ratio. 5. Audrey's Mineral Spa has an accounts receivable turnover ratio of 12.0 times. How does NGS compare to this competitor? Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Required Requirgih, Required 3 4 W Estimate the Allowance for Doubtful Acc Required 4 at December 31, assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 3%; two months, 5%; three months, 20%; more than three months, 30%. Show less Estimated Uncollectible One Month $ 65X Two Months 30x Three Months 118 More than three Months 392X Total $ 605 The following transactions occurred over the months of September to December at Nicole's Getaway Spa (NGS). September Sold spa merchandise to Ashley Welch Beauty for $2,158 on account; the cost of these goods to NGS was $1,040. October Sold merchandise to Kelly Fast Nail Gallery for $598 on account; the cost of these goods to NGS was $270. November Sold merchandise to Raea Gooding Wellness for $440 on account; the cost of these goods to NGS was $260. December Received $1,410 from Ashley Welch Beauty for payment on its account. Required: 1. Prepare journal entries for each of the transactions. Assume a perpetual inventory system. 2. Estimate the Allowance for Doubtful Accounts required at December 31, assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 3%; two months, 5%; three months, 20%; more than three months. 30% 3. The Allowance for Doubtful Accounts balance was $54 (credit) before the end-of-period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense. 4. Assume the end of the previous year showed net accounts receivable of $870, and net sales for the current year are $9,700. Calculate the accounts receivable turnover ratio. 5. Audrey's Mineral Spa has an accounts receivable turnover ratio of 12.0 times. How does NGS compare to this competitor? Answer is not complete. Complete this question by entering your answers in the tabs below. 1 2 4 Required Required Required Required Required 5 The Allowance for Doubtful Accounts balance was $54 (credit) before the end-of-period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Show less No Transactio General Journal Debit Credit
