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 1,500 on account; the cost of these goods to NGs was $780. October Sold merchandise to Kelly Fast Nail Gallery for $330 on account: the cost of these goods to NGS was $140 November sold merchandise to Raea Gooding Wellness for $180 on account; the cost of these goods to NGS was 130 December Received $1,020 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 3. The Allowance for Doubtful Accounts balance was $41 (credit) before the end-of-period adjusting entry is made. Prepare the journal 4. Assume the end of the previous year showed net accounts receivable of $740, and net sales for the current year are $8,400 5. Audrey's Mineral Spa has an accounts receivable turnover ratio of 8.0 times. How does NGS compare to this competitor? one month, 3%; two months, 5%; three months, 20%; more than three months, 30%. entry to account for the Bad Debt Expense Calculate the accounts receivable turnover ratio 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 1,500 on account; the cost of these goods to NGs was $780. October Sold merchandise to Kelly Fast Nail Gallery for $330 on account: the cost of these goods to NGS was $140 November sold merchandise to Raea Gooding Wellness for $180 on account; the cost of these goods to NGS was 130 December Received $1,020 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 3. The Allowance for Doubtful Accounts balance was $41 (credit) before the end-of-period adjusting entry is made. Prepare the journal 4. Assume the end of the previous year showed net accounts receivable of $740, and net sales for the current year are $8,400 5. Audrey's Mineral Spa has an accounts receivable turnover ratio of 8.0 times. How does NGS compare to this competitor? one month, 3%; two months, 5%; three months, 20%; more than three months, 30%. entry to account for the Bad Debt Expense Calculate the accounts receivable turnover ratio
