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

Instructions

(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

Questions Cloud

Determine the value of ending inventory if the sales value : Determine the value of ending inventory if the sales value at splitoff method is used for product costing. Round to three decimal places when necessary.
Journalize and post to the allowance account the following : May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1.
Determine the amount of joint cost allocated to each product : Determine the amount of joint cost allocated to each product if the physical-measure method is used.
What amount of bad debts expense will bee record : Assume the same facts as in (c), except that there is a $2,000 debit balance in Allowance for Doubtful Accounts.What amount of bad debts expense will Bee record?
Assume that no cash discounts were taken on the collections : Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable.
Determine the amount allocated to each product if the estima : Determine the amount allocated to each product if the estimated net realizable value method is used, and compute the cost per case for each product.
Kloppenberg company prepares financial statements annually : Kloppenberg Company prepares financial statements annually. During the year the following selected transactions occurred.
Describe what would happen to a company value chain : Describe what would happen to a company’s value chain if all electronic devices and systems suddenly were unavailable and an expected time for resolution time was unknown. Could a value chain be maintained without electronics and technology to suppor..
Calculate the depreciation on a residential rental building : The first year of depreciation on a residential rental building costing 200,000 purchased on May 2, 2012. The second year of depreciation on a computer costing 3,000 purchased in May 2011, using the half year convention and accelerated depreciation

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Determine what your state income taxes

Determine your total taxes paid based on the above calculations, and determine the percentage of income that you would pay in taxes based on the following formula:Total taxes paid ÷ Total income.

  Totals on cash register dials are as follows groceries 200

jan. 3. totals on cash register dials are as follows groceries 200 meats 50 vegetable and fruits 20. note enter the

  Prepare a classified balance sheet at july

Analyze transactions (a)-(e) to determine their effects on the accounting equation. Use the format shown in the demonstration case on page 69. Record the transaction effects determined in requirement 1 using a journal entry format. Summarize the jour..

  Find oilily wacc under each of the following scenarios

a. Oilily has a market value debt-to-value ratio of 40 percent. Oilily's pretax borrowing cost on new long-term debt in France is 7 percent. Oilily's beta relative to the French stock market is 1.4.

  Question regarding the comprehensive analysis

Incremental analysis is considered to be more economical than a comprehensive analysis, while being just as effective. Do you agree or disagree?

  On january 1 2011 franz company purchased a truck that

on january 1 2011 franz company purchased a truck that cost 44000. the truck had an expected useful life of 5 years and

  The annual payment and the change in surrender value

The cash surrender value of the life insurance policies increased during the year from $8,500 to $10,000.

  Tina is the only shareholder of edgecombe corporation

Tina is the only shareholder of Edgecombe Corporation.

  How is the interest revenue computed

A company purchased a $5,000, 25-year zero-coupon bond for $820 to yield 8.5% to maturity. How is the interest revenue computed?

  When fixed overhead is allocated to product the greater the

many accounting writers have emphasized the effect that the allocation of fixed overhead can have on managerial

  There are 36 units of the item in the physical inventory at

the units of an available for sale during the year were as followsjan. 1 inventory 42 units at 60mar. 10 purchase 58

  Determine the proper balances as of 123114 for a separate

gibbs manufacturing co. was incorporated on 1214 but was unable to begin manufacturing activities until 8114 because

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