User Account

All Pages

Record journal entries for collection of written-off account

Assignment Help Accounting Basics
Reference no: EM132737710

The following data relates to Medicore Inc. for the year 2020:

Credit sales for 2020: $6,500,000

Sales returns and allowances for 2020: $300,000

Accounts receivable as at Dec. 31, 2020: $750,000

Allowance for doubtful accounts as at Jan. 1, 2020: $18,000

Medicore estimates its bad debt expense during the year as 0.2% of net credit sales. On May 15, 2020, Medicore unexpectedly collected $10,000 of a previously written-off account.

Required:

Problem 1: Record the journal entries for:The collection of the previously written-off account on May 15; Bad debt expense for the year.

Problem 2: After the journal entries from a) had been completed, management reviewed the balance in the allowance for doubtful accounts, and determined that it should be 5% of gross accounts receivable. Prepare the adjusting journal entry required.

Reference no: EM132737710

Questions Cloud

Healthcare delivery disparities : What effects could telemedicine have on healthcare delivery disparities in the US? Discuss 3 current challenges to widespread telemedicine use.
Provide the journal entries for chpl related to the sale : Provide the journal entries for CHPL related to this sale for the year 2020, assuming CHPL has a December 31 year end. Assume all cost of goods sold entries
Determine the scope for risk management process : 1. Organisational processes, procedures and requirements for undertaking risk management assessments and managing risk should be periodically reviewed. Why?
Describe the strategiesyou use to search for evidence : Outline/Describe the strategies/process you use to search for evidence related to best practices (including databases used, search phrases, number of articles.
Record journal entries for collection of written-off account : The allowance for doubtful accounts, and determined that it should be 5% of gross accounts receivable. Prepare the adjusting journal entry required.
Prepare a customer profitability analysis for trace telecom : Prepare a customer profitability analysis for Trace Telecom and Caltex Computer and Construct an Excel spreadsheet to solve requirement
What value for inventory must be shown : The net realisable value of the inventory is deemed to be $28 000. What value for inventory must be shown on the entity's balance sheet for the reporting period
Post a brief description of your clinical issue of interest : Post a brief description of your clinical issue of interest. This clinical issue will remain the same for the entire course and will be the basis.
Find and calculate the recoverable amount : Assuming Thyme uses the rational entity impairment model, Prepare the entry to record the impairment loss. Calculate the recoverable amount.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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