Show me how to post my homework

Just do my homework!

  • HTML tags will be transformed to conform to HTML standards.
  • Add rel="nofollow" to external links
Question
Submitted by neel on Tue, 2013-01-08 16:41
due on Sat, 2013-01-12 16:41
answered 1 time(s)
neel is willing to pay $15.00
neel bought 666 out of 1812 answered question(s)

Allowance method:

  1. Allowance method: Income statement and balance sheet

    approaches. 
    Tempe

    Company reported accounts receivable of $300,000 and an allow­ance for

    uncollectible accounts of $31,000 (credit) on the December 31, 19X2, balance

    sheet. The following data pertain to 19X3 activities and operations:

 

  

 

Sales

  on account



    

 

$2,000,000



    

 

Cash

  collections from credit customers



    

 

1,600,000



    

 

Sales

  discounts



    

 

50,000



    

 

Sales

  returns & allowances



    

 

100,000



    

 

Uncollectible

  accounts written off



    

 

29,000



    

 

Collections

  on accounts that were previously written off



    

 

2,700



 

 

 

Instructions

  1. Prepare journal entries to

    record the sales- and receivables-related trans­actions from 19X3.
  2. Prepare the December 31,

    19X3, adjusting entry for uncollectible ac­counts assuming that uncollectibles

    are estimated to be 2% of net credit sales.
  3. Prepare the December 31,

    19X3, adjusting entry for uncollectible ac­counts assuming that uncollectibles

    are estimated at 1% of year-end accounts receivable.
  4. Compute the amount of the

    adjusting entry in part (c) assuming that $46,000, rather than $29,000, of

    accounts were written off in 19X3.

Answer
Submitted by neel on Tue, 2013-01-08 16:45
teacher rated 537 times
4.163875
price: $15.00

Allowance method

body preview (2 words)

Allowance method

file1.xlsx preview (254 words)

xxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
x
a
xxxxxxxx xxxxxxxxxx 2000000
To xxxxxxxxxxxx
Cash 1600000
To Accounts xxxxxxxxxxxxxxxxx
xxxxx Return & xxxxxxxxxx xxxxxx
xx Accounts Receivablexxxxxx
Sales Discount 50000
To Accounts Receivable50000
xxxxxxxxxx of xxxxxxxx xxxx xxxxx
To Accounts Receivablexxxxx
Accounts Receivable 2700
To Allowances xx Doubtful xxxxxxxx
xxxx2700
xx Accounts Receivable2700
b
xxxxxx xxxxx 2000000
xxxx xxxxx Discount50000
Less Sales xxxxxx100000
xxx xxxxxx Salesxxxxxxx
Allowances of xxxxxxxx xxxx x xx of xxx credit sales
= xxxxx
xxxxxxx Allowances xx Doubtful xxxx31000
Lessxxx Debts xxxxxxx off xxxxx
xxx xxx xxxxx recovered 2700
Allowance xxx xxx xxxx xxxxxxx32300
xxxxxxx Allowances xx Doubtful Debt xxxxx
Bad xxxxx xxxxxxx32300
xx xxxxxxxxxx xx xxxxxxxx xxxxxxxxx
c
xxxxxxx xxxxxxxxxxx300000
xxx Receivables on xxxxxxx xx xxxxx during xxxx 2000000
xxxx xxxxxxxxxxx xxxxxxxx -1600000
xxxx Sales xxxxxxxx-50000
Less Sales xxxxxx-100000
xxxx xxxxxxx xxxxxxx Off-29000
Closing xxxxxxx xxxxxx
xxxxxxxxxx of Doubtful Debt = xx xx xxxxxxxx Receivable
xxxxx
xxxxxxx Allowances of Doubtful xxxx 31000
Lessxxx Debts xxxxxxx xxx xxxxxx
Add Bad Debts recovered 2700
xxxx
Allowance for Bad xxxx Requiredxxxx
xxxxxxxxx for xxx Debt xxxxxxx4700
xxxxxxxxx xxxxxxxx for Allowance xxx Bad debtxxx
xxx xxxxx Expense 510
xx xxxxxxxxxx xx xxxxxxxx Debtxxx
x
Opening Receivables 300000
xxx Receivables on xxxxxxx of xxxxx during

- - - more text follows - - -


Buy this answer

Try it before you buy it
Check plagiarism for $2.00