Assume that no cash discounts were taken on the collections

Assignment Help Accounting Basics
Reference no: EM131144333

At December 31, 2009, Dill Imports reported the following information on its balance sheet.

Accounts receivable.......... $250,000
Less: Allowance for doubtful accounts... 15,000
During 2010, the company had the following transactions related to receivables.

1. Sales on account..................... $2,400,000
2. Sales returns and allowances................. 45,000
3. Collections of accounts receivable.............. 2,250,000
4. Write-offs of accounts receivable deemed uncollectible..... 12,000
5. Recovery of bad debts previously written off as uncollectible... 3,000


(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.

(b) Enter the January 1, 2010, balances in Accounts Receivable and Allowance for Doubtful Accounts. Post the entries to the two accounts (use T accounts), and determine the balances.

(c) Prepare the journal entry to record bad debts expense for 2010, assuming that an aging of accounts receivable indicates that estimated bad debts are $22,000.

(d) Compute the accounts receivable turnover ratio for the year 2010.

Reference no: EM131144333

Calculate and evaluate the contribution margin ratio

Prepare an Income Statement in appropriate format for your business. Calculate and evaluate the Weighted Average Contribution Margin (WACM). Calculate and evaluate the Contrib

Reallocation of fixed costs

1. If a division is reporting losses, does that necessarily mean that it should be closed? 2. Was the reallocation of fixed costs across divisions unethical? 3. What should Bl

Discussion of impact of monetary exchange rates

Prepare a paper that addresses the political and business risks and the rewards associated with global business operations. Include a discussion of the impact of monetary ex

Prepare an unadjusted trial balance for the end of june

Prepare an unadjusted trial balance for the end of June. If you are using the GL tool in Connect, this requirement is completed automatically using your previous answers. Refe

Roofling company paid wages

Roofling Company paid wages of $319,600 this year. Of this amount, $193,900 was taxable for net FUTA and SUTA purposes. The state's contribution tax rate is 4.3% for Roofling

Costing believing that its traditional cost system

Activity-Based Costing Believing that its traditional cost system may be providing misleading information, an organization is considering an activity-based costing approach.

What are the four basic financial statements

What are the four basic financial statements? What is the primary purpose of each of the four basic financial statements? In your opinion, which financial statement is the m

How many units does samantha need to sell to breakeven

How many units does Samantha need to sell to breakeven? How much revenue does Samantha need to generate to breakeven? How many units does Samantha need to sell to ea


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd