Question : 60) On July 31, the accountant for Team Shirts was : 1253210

 

60) On July 31, the accountant for Team Shirts was reviewing items related to accounts receivable. The following information was gathered for July:

 

a. The beginning balance in the Allowance for uncollectible accounts was $(600).

b. An account receivable owed by a customer in England for $250 U.S. dollars was determined to be uncollectible.

c. Credit sales for July were $12,000. The accountant for Team Shirts estimated that 4% of the sales would eventually be uncollectible.

 

What is the amount of bad debts expense for July? What will be the ending balance in the Allowance for uncollectible accounts?

 

61) On June 30, the accountant for Team Shirts was reviewing items related to accounts receivable. The following information was gathered for June:

 

a. The April 1 balance in the Allowance for uncollectible accounts was $(1,200).

b. $300 owed by the Power Pugs had been written off in June.

c. Credit sales for June were $7,000. The accountant for Team Shirts estimated that 3% of the sales would eventually be uncollectible.

 

1. What is the amount of bad debts expense for June? On which financial statement is it found?

 

2. What will be the amount in the Allowance for uncollectible accounts at June 30? On which financial statement is it found?

62) At December 31, 2011, Dodgem Company has Accounts receivable of $25,000. The Allowance for uncollectible accounts has a balance of $(200) before adjustment.

 

Part A: Show the effect of the following events on the accounting equation, including both account titles and amounts:

 

Shareholders’ equity

 

 

Assets

Liabilities

CC

Retained earnings

1.

On Dec. 31, 2011, Dodgem estimates that 10% of its accounts receivable will be  uncollectible.

 

 

 

 

2.

During 2012, Dodgem had $500,000 of sales on account.

 

 

 

 

3.

During 2012, Dodgem collected $490,000 from credit customers.

 

 

 

 

4.

During 2012, Dodgem wrote off $2,000 of specific customer accounts.

 

 

 

 

5.

On Dec. 31, 2012, Dodgem estimates that 10% of its accounts receivable will be uncollectible.

 

 

 

 

 

Part B: Select the column which represents the 2011 financial statement where the item will appear, and fill in the correct dollar amount:

 

 

 

Income Statement

Balance Sheet

1.

Net accounts receivable

 

 

2.

Bad debts expense

 

 

3.

Allowance for uncollectible accounts

 

 

 

Part C: Select the column which represents the 2012 financial statement where the item will appear, and fill in the correct dollar amount:

 

 

 

Income Statement

Statement of Cash Flows

Balance Sheet

1.

Sales

 

 

 

2.

Cash received from customers

 

 

 

3.

Net accounts receivable

 

 

 

4.

Bad debts expense

 

 

 

5.

Allowance for uncollectible accounts

 

 

 

 

63) Part A: Justin Company has accounts receivable of $40,000. The allowance for uncollectible accounts has a balance of $200, a positive number, before adjustment. An aging schedule prepared December 31, 2012 estimates that $1,100 of accounts receivable are uncollectible. Show the effect of the adjusting entry on the accounting equation, including both account titles and amounts:

 

Shareholders’ equity

 

Assets

Liab.

CC

Retained earnings

 

 

 

 

 

 

Part B: Jayson Company has accounts receivable of $40,000. The allowance for uncollectible accounts has a balance of ($200), a negative number, before adjustment. An aging schedule prepared December 31, 2012 estimates that $1,100 of accounts receivable are uncollectible. Show the effect of the adjusting entry on the accounting equation, including both account titles and amounts:

Shareholders’ equity

 

Assets

Liab.

CC

Retained earnings