Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Swiss Supplies showed the following selected adjusted balances at its December 31, 2019, year-end: Accounts Receivable Dec. 31/19 Balance 580,000 Allowance for Doubtful Accounta 13,600

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Swiss Supplies showed the following selected adjusted balances at its December 31, 2019, year-end: Accounts Receivable Dec. 31/19 Balance 580,000 Allowance for Doubtful Accounta 13,600 Dec. 31/19 Balance During 2020, the following selected transactions occurred: a. Sales totalled $2,980,000, of which 25% were cash sales (cost of sales $1,921,000). b. Sales returns were $101,000, half regarding credit sales. The returned merchandise was scrapped. c. An account for $17,000 was recovered. d. Several accounts were written off: $19,000. e. Collections from credit customers totalled $1,890,000 (excluding the recovery in (c) above), Part A os Required: 1. Journalize transactions (a) through (e). You may find it useful to post your entries to T-accounts for Accounts Recelvable and Allowance for Doubtful Accounts. View transaction list x 1 Record the sales 2 Record the cost of sales. Record the return of defective merchandise to be scrapped. 4 Record the reversal entry of write-off due to recovery. Record the recovery Credit 5 6 Record the write-off of uncollectible accounts. 7 Record the collections from credit customers. Part B Required: 2. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 1% of net credit sales. View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits Date General Journal Debit Credit December 31 View general Journal Record entry Clear entry 12020 balance sheet 3. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Partial Balance Sheet Assets Current assets; 4. What will bad debt expense be on the income statement for the year ended December 31, 2020? Bad debt expense Part C (Independent of Part B) Required: 5. Prepare the December 31, 2020, adjusting entry to estimate bad debts assuming that uncollectible accounts are estimated to be 3% of outstanding receivables, View transaction list Journal entry worksheet 1 Record the estimate for uncollectible accounts Note: Enter debits before credits General Journal Debit Credit Data Dec 31 Record entry Clear entry View general Journal 6. Show how accounts receivable will appear on the December 31, 2020, balance sheet. Partial Balance Sheet Assets Current assets: 7. What will bad debt expense be on the income statement for the year ended December 31, 2020? Bad debt expono

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

Step: 3

blur-text-image

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

Organizing Smart Buildings And CitiesPromoting Innovation And Participation

Authors: Elisabetta Magnaghi, VĂ©ronique Flambard, Daniela Mancini, Julie Jacques, Nicolas Gouvy

10th Edition

3030606066, 9783030606060

More Books

Students also viewed these Accounting questions