Question : 151. Prepare general journal entries for the following transactions of this : 1256931

 

151. Prepare general journal entries for the following transactions of this company for the current year:

 

Apr. 25

Sold $4,500 of merchandise to CBC Corp., receiving a 10%, 60-day, $4,500 note receivable.

June 24

The note of CBC Corp., received on April 25 was dishonored.

 

 

 

152. Prepare general journal entries for the following transactions of this company for the current year:

Dec. 13

Accepted a $8,000, 60-day, 9% note dated December 13 in granting Faith Renee a time extension on her  past-due account receivable.

31

Prepared an adjusting entry to record the accrued interest on the Renee note.

 

  

153. The following information is from the annual financial statements of Duke Company.

 

2014

2013

2012

Net sales

$385,000

$308,000

$255,000

Accounts receivable, net (year-end)

57,500

54,000

44,700

Calculate the accounts receivable turnover ratio for 2013and 2014.

 

 

 

 

 

 

 

154. Corona Company has credit sales of $4.60 million for year 2014. On December 31, 2014, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $13,164. Corona prepares a schedule of its December 31, 2014, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:

December 31, 2014Accounts Receivable

Age of Accounts

Receivable

Expected Percent Uncollectible

$720,000

Not yet due

1.05

%

252,000

1 to 30 days past due

1.80

 

49,600

31 to 60 days past due

6.30

 

14,100

61 to 90 days past due

31.75

 

2,850

Over 90 days past due

66.00

 

 

Assuming the company used the aging of accounts receivable method, determine the amount that should be recorded for bad debt expense on December 31, 2014.

 

 

 

 

 

155. Corona Company has credit sales of $4.60 million for year 2014. The company estimates that 2% of sales will be uncollectible. On December 31, 2014, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $13,164. Corona prepares a schedule of its December 31, 2014, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:

December 31, 2014Accounts Receivable

Age of Accounts

Receivable

Expected Percent Uncollectible

$720,000

Not yet due

1.05

%

252,000

1 to 30 days past due

1.80

 

49,600

31 to 60 days past due

6.30

 

14,100

61 to 90 days past due

31.75

 

2,850

Over 90 days past due

66.00

 

 

Assuming the company used the percent of sales method determine the amount that should be recorded for bad debt expense on December 31, 2014.

 

 

 

 

 

 

156. Corona Company has credit sales of $4.60 million for year 2014. The company estimates that 1.42% of accounts receivable will be uncollectible. On December 31, 2014, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $13,164. Corona prepares a schedule of its December 31, 2014, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here:

December 31, 2014Accounts Receivable

Age of Accounts

Receivable

Expected Percent Uncollectible

$720,000

Not yet due

1.05

%

252,000

1 to 30 days past due

1.80

 

49,600

31 to 60 days past due

6.30

 

14,100

61 to 90 days past due

31.75

 

2,850

Over 90 days past due

66.00

 

 

Assuming the company uses the percent of accounts receivable method, determine the amount that should be recorded for bad debt expense on December 31, 2014.