Question :
51) Consider the following INDEPENDENT situations for XYZ Company:
a.The Allowance : 1230161
51) Consider the following INDEPENDENT situations for XYZ Company:
a.The Allowance for Uncollectible Accounts has a $1,200 credit balance prior to adjustment. Net credit sales during the year are $830,000 and 4% are estimated to be uncollectible. Accounts Receivable has a balance of $110,000 at the beginning of the year.
b.The Allowance for Uncollectible Accounts has a $900 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $17,900 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $104,000 at the end of the year.
c.The Allowance for Uncollectible Accounts has a $16,300 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $20,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $958,000 at the end of the year.
d.The Allowance for Uncollectible Accounts has a $500 credit balance prior to adjustment. Net credit sales during the year are $900,000 and 5% are estimated to be uncollectible. Accounts Receivable has a balance of $825,000 at the end of the year.
Prepare the adjusting journal entries needed for each INDEPENDENT situation.
52) Consider the following INDEPENDENT situations for XYZ Company:
a.The Allowance for Uncollectible Accounts has a $1,200 credit balance prior to adjustment. Net credit sales during the year are $830,000 and 4% are estimated to be uncollectible. Accounts Receivable has a balance of $110,000 at the beginning of the year.
b.The Allowance for Uncollectible Accounts has a $900 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $17,900 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $104,000 at the end of the year.
c.The Allowance for Uncollectible Accounts has a $16,300 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared at the end of the year, $20,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $958,000 at the end of the year.
d.The Allowance for Uncollectible Accounts has a $500 credit balance prior to adjustment. Net credit sales during the year are $900,000 and 5% are estimated to be uncollectible. Accounts Receivable has a balance of $825,000 at the end of the year.
Calculate the net receivables for each situation A through D)
53) The Cat Company obtained the following information from its accounting records for the year ended December 31, 2012:
Sales during 2012$876,500
Credit Sales are 80% of sales
Accounts Receivable$205,000
Allowance for Uncollectible Accounts
(before adjustment)$830credit
Cat Company uses the percent-of-sales method, at 2.0% of credit sales, to estimate uncollectible accounts for 2012.
The president of the company wants to change to the aging-of-receivables method and estimates $12,450 as the uncollectible amount for 2012.
Prepare a schedule for the president showing the amount of the adjusting entry, ending balance in the allowance account, and the net realizable value of accounts receivable under each method.
54) Journalize the following transactions for The Computer Store. The Computer Store uses the direct write-off method of accounting for uncollectible receivables.
April 5The Computer Store sells $3,200 of computer equipment on account to Jane Doe.
June 5Jane Doe pays The Computer Store $2,000 of the amount she owes.
July 7After repeated attempts to collect the balance due from Jane Doe fail, The Computer Store writes-off the remainder of the amount she owes.
