Balance of accounts receivable

Assignment Help Financial Accounting
Reference no: EM132203730

Problem

- Credit Sales terms:  2%/10 days and n/30 days on all accounts  

- January 1, 2014 balance of Accounts Receivable was $39,500 with a credit balance of $15,000 in the Allowance for Doubtful Accounts.  

- On July 5, 2014 an Accounts Receivable balance from a customer of 10,000 was determined to be uncollectable and was written off.  

- The company determines bad debt expense based on an aging analysis based on 4 time periods at the end of the year.

-  Not yet due: 1%  (Outstanding Balance:  5,000)

- Up to 6 months past due:  5% (Outstanding Balance:  30,000)

- 6 to 12 months past due:  20% (Outstanding Balance:  20,000)

- Greater than 12 months past due:  50% (Outstanding Balance 8,000)

Required:

Prepare journal entries for each transaction:

-  To record the July 5 Account Receivable balance

- To record bad debt expense given the company using the Allowance for Doubtful Accounts

Reference no: EM132203730

Questions Cloud

About phrases or statements in your work environment : Think about phrases or statements in your work environment or in the real life that are or have:
Maintaining effective employee training program : Implementing and maintaining an effective employee training program can be challenging at times,
Historical evaluation of production and operation management : Give a 3 page essay of the historical evaluation of production and operation management from the 15 century to present day?
Estimating costs based on past information : A company is estimating its costs based on past information. The total costs incurred by the company at different levels of output were as follows:
Balance of accounts receivable : January 1, 2014 balance of Accounts Receivable was $39,500 with a credit balance of $15,000 in the Allowance for Doubtful Accounts.
Youth related anti-social behaviour in nearby blue bay : These residents are feeling frightened and vulnerable due to a recent increase in youth related anti-social behaviour in nearby Blue Bay.
Description of products and services offered to consumer : Product a. This section of the marketing plan should include a description of the products and services offered to the consumer.
Zap fund is the mainstay of portfolio : Zap Fund is the mainstay of your portfolio. The investment company just announced its? year-end distributions.
How much are the proceeds that they will receive : On January 1, Electric Company issued $325,000 of 6%, 3-year bonds when the market rate of interest was 10%.

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Determine the costs per equivalent unit for may

Finding  the equivalent units for materials and conversion - Determine the costs per equivalent unit for May?

  Stock was originally recorded using the cost method

24,800 shares reacquired by Elixir Corporation for $48 per share were exchanged for undeveloped land that has an appraised value of $1,740,700. At the time of the exchange, the common stock was trading at $63 per share on an organized exchange. (a) P..

  Receivable as the basis for determining bad debt expense

Flip Company at the end of the fiscal 2014 year has the following information: Credit Sales, $2,500,000 Sales Returns & Allowances $25,000 Accounts Receivable $200,000 and Allowance for Doubtful Accounts with a debit o $1,500. Prepare the general jou..

  What is the nominal required return on wine investments

What is the nominal required return on wine investments in the U.K.? in Vino - Identify expected future cash flows on this foreign investment project. Discount these cash flows at the vino-unit discount rate from a) to find NPV0V. Use the current s..

  Alternative minimum taxable income

Russet Corporation, a calendar year taxpayer, has alternative minimum taxable income (before the exemption amount) of $500,000 in 2016. Russet Corporation’s tentative minimum tax for 2016 is… Give an explanation for your answer.

  Prepare a reconciliation schedule to convert 2014 income

Prepare a reconciliation schedule to convert 2014 income as well as stockholders'' equity on December 31, 2014 from US GAAP to IFRS.

  What would be the minimum expected return from a new capital

What would be the minimum expected return from a new capital investment project to satisfy the suppliers of the capital? Assume the applicable tax rate is 40%, interest on debt is 5%.

  Determine the cost of acquisition of the machine

Determine the cost of acquisition of the machine. Provide journal entries to account for the machine on 1 July 2013 (acquisition) and on 30 June 2014

  Prepare a projected income statement for november

Prepare a projected income statement for November. Prepare schedules computing inventory budgets by months.

  Compute the required sales needed to achieve target

Compute the required sales needed to achieve management's target net income of $68,610 and who are the stakeholders in this decision, is it ethical for Gina to revise the costs as indicated? Briefly explain.

  Itemized deductions after any applicable limitations

Simpson is a single individual under 65 who is employed full-time by Duff Corporation. This year Simpson reports AGI of $52,000 and has incurred the following medical expenses: Dentist charges $ 1,740 Physician's charges 2,190 Optical charges 515 Cos..

  What amounts will be reported on the income statement

Assume that the company's tax rate is 30%. What amounts will be reported on the income statement for income before irregular items and extraordinary items, respectively?

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