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The Generation Employment Agency started business on January 1, 2020. The company produced monthly financial statements and had total sales of $525 000 (of which

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The Generation Employment Agency started business on January 1, 2020. The company produced monthly financial statements and had total sales of $525 000 (of which 500 000 was on account during the first four months On April 30, Accounts Receivable had a balance of 5236 400 no accounts have been written off to date, which was made up of the following accounts aged according to the date of the sale Click the icon to view the aging of accounts receivable table.) Click the icon to view the accounts receivable transactions) Required Requirement 1. The Generation Employment Agency has heard that other companies in the industry use the lowance method of accounting for uncollecties with many of these estimating the codes through an aging of accounts receivable - Journal the m es that would have to be made on April 30 (for the month of January through April) (Record debitis forst, the credits Exclude explanations from journal entries. Do not round intermediary calculations. Only round the amounts you input in the cell to the nearest dollar) E LEM VIGILWds Tildue u Ulure TUMUWII DLcUTILS Dueu au X Aging schedule Customer Golden Distributors PG Courier Personnel Solutions Natures Design Month of Sale January February March $ 3,600 $ 1.000 $ 2,000 $ 1,000 1,200 3,400 5,000 14,000 8,000 2,000 7,400 8,120 23,760 16,360 53,480 $ 35,360 $ 39,960 $ 75,000 $ April 1,800 2,400 4,000 28,400 49,480 86,080 Other Accounts Receivable Accounts Recievable Transactions The following accounts receivable transactions took place in May 2020: May 12 Decided the PG Courier account was uncollectible and wrote it off. 15 Collected $6,600 from Golden Distributors for sales made in the first three months. 21 Decided the Personnel Solutions account was uncollectible and wrote it off. 24 Collected $2,000 from Natures Design for sales in the month of January 26 Received a cheque from Personnel Solutions for $18,200 plus four cheques of $3,200 each, post-dated to June 26, July 26, August 26, and September 26. 31 Total sales in the month were $380,000; 90 percent of these were on account, and 75 percent of the sales on account were collected in the month. 1. The Generation Employment Agency has heard that other companies in the industry use the allowance method of accounting for uncollectibles, with many of these estimating the uncollectibles through an aging of accounts receivable. a. Journalize the adjustments that would have to be made on April 30 (for the months of January through April), assuming the following estimates of uncollectibles: Age of Accounts Receivable Percent Estimated Uncollectible From current month From prior month From two months prior From three months prior From four months prior 45% b. Journalize the transactions of May 2020. c. Journalize the month-end adjustment, using the table that appears in requirement 1a. 2. For the method of accounting for the uncollectibles used above, show a. The balance sheet presentation of the accounts receivable b. The overall effect of the uncollectibles on the income statement for the months of April and May 2020. The Generation Employment Agency started business on January 1, 2020. The company produced monthly financial statements and had total sales of $525 000 (of which 500 000 was on account during the first four months On April 30, Accounts Receivable had a balance of 5236 400 no accounts have been written off to date, which was made up of the following accounts aged according to the date of the sale Click the icon to view the aging of accounts receivable table.) Click the icon to view the accounts receivable transactions) Required Requirement 1. The Generation Employment Agency has heard that other companies in the industry use the lowance method of accounting for uncollecties with many of these estimating the codes through an aging of accounts receivable - Journal the m es that would have to be made on April 30 (for the month of January through April) (Record debitis forst, the credits Exclude explanations from journal entries. Do not round intermediary calculations. Only round the amounts you input in the cell to the nearest dollar) E LEM VIGILWds Tildue u Ulure TUMUWII DLcUTILS Dueu au X Aging schedule Customer Golden Distributors PG Courier Personnel Solutions Natures Design Month of Sale January February March $ 3,600 $ 1.000 $ 2,000 $ 1,000 1,200 3,400 5,000 14,000 8,000 2,000 7,400 8,120 23,760 16,360 53,480 $ 35,360 $ 39,960 $ 75,000 $ April 1,800 2,400 4,000 28,400 49,480 86,080 Other Accounts Receivable Accounts Recievable Transactions The following accounts receivable transactions took place in May 2020: May 12 Decided the PG Courier account was uncollectible and wrote it off. 15 Collected $6,600 from Golden Distributors for sales made in the first three months. 21 Decided the Personnel Solutions account was uncollectible and wrote it off. 24 Collected $2,000 from Natures Design for sales in the month of January 26 Received a cheque from Personnel Solutions for $18,200 plus four cheques of $3,200 each, post-dated to June 26, July 26, August 26, and September 26. 31 Total sales in the month were $380,000; 90 percent of these were on account, and 75 percent of the sales on account were collected in the month. 1. The Generation Employment Agency has heard that other companies in the industry use the allowance method of accounting for uncollectibles, with many of these estimating the uncollectibles through an aging of accounts receivable. a. Journalize the adjustments that would have to be made on April 30 (for the months of January through April), assuming the following estimates of uncollectibles: Age of Accounts Receivable Percent Estimated Uncollectible From current month From prior month From two months prior From three months prior From four months prior 45% b. Journalize the transactions of May 2020. c. Journalize the month-end adjustment, using the table that appears in requirement 1a. 2. For the method of accounting for the uncollectibles used above, show a. The balance sheet presentation of the accounts receivable b. The overall effect of the uncollectibles on the income statement for the months of April and May 2020

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