Question 1

An aging of Sernett Company's accounts receivable at the end of 2012 yielded the following information about the lengths of time that the receivables had been outstanding:

Accepted Answer

The balance in the Allowance for Doubtful Accounts before adjustments was $310. Based on the preceding information, a)What should be the balance in the Allowance for Doubtful Accounts after the adjusting entry? b)What is the amount of uncollectible accounts expense that should be reported on the income statement?

Question 2

On September 30,2012,Falls Company collected the accrued interest revenue on a one-year note receivable dated October 1,2010.Show the effect of the collection of previously-accrued interest on Falls' financial statements.

Accepted Answer

The answer of On September 30,2012,Falls Company collected the accrued...

Question 3

Porter Company experienced the following events during 2012:
1.Recognized $8,400 of service revenue on account
2.Wrote off as uncollectible an account receivable in the amount of $27
3.Prepared adjusting entry to recognize uncollectible accounts expense.Porter expected that 1% of service revenue would not be collected
Required:
Show how each of these events would affect the financial statements model,below.Include dollar amounts of increases and decreases.When an account is not affected by a particular event,indicate with NA.

Accepted Answer

The answer of Porter Company experienced the following events during...

Question 4

On March 31,2012,Stuart Co.wrote off a $600 account receivable of one of its customers.The $600 sale had been made in 2011.Stuart uses the allowance method to account for uncollectible accounts expense.Show how the write-off of the account would affect Stuart's financial statements.

Accepted Answer

The answer of On March 31,2012,Stuart Co.wrote off a $600...

Question 5

The Repair Shop provided $618,000 of services to customers during 2012.All customers paid for the services with credit cards.The company submitted the credit card receipts to the credit card company immediately,and the credit card company paid cash in the amount of face value less a 4 percent service charge.
Required:
Record the credit card sales and collection of the receivables in the horizontal statements model,below.Show dollar amounts of increases and decreases.For cash flows,indicate whether the item is an operating activity (OA),investing activity (IA),or financing activity (FA).Use NA to indicate that an element is not affected by an event.

Accepted Answer

The answer of The Repair Shop provided $618,000 of services...

Question 6

Potter Co.used the allowance method to account for uncollectible accounts expense.On June 20,2012,Potter wrote off an uncollectible account in the amount of $8,000.Show the effect of this write-off.

Accepted Answer

The answer of Potter Co.used the allowance method to account...

Question 7

The following information is available for Parsons Corporation,which uses the allowance method of accounting for uncollectible accounts.

Accepted Answer

The answer of The following information is available for Parsons...

Question 8

On December 31,2012,Stuart Co.estimated it had $8,000 of uncollectible accounts related to credit sales it made during the year.Stuart,which uses the allowance method,made the proper adjusting entry on this date.Indicate the effects of the adjusting entry.

Accepted Answer

The answer of On December 31,2012,Stuart Co.estimated it had $8,000...

Question 9

Hines Enterprises loaned $4,000 to Baldwin Company on October 1,2010,for one year at 8% interest.
Required:
Show the effects on the financial statements model (below)of
a)the loan to Baldwin
b)the adjusting entry at December 31,2010
c)accrual of interest and collection of the note and related interest on October 1,2011
Indicate dollar amounts of increases and decreases.For cash flows,indicate whether the item is an operating activity (OA),investing activity (IA),or financing activity (FA).If an element is not affected by an event,indicate with NA.

Accepted Answer

The answer of Hines Enterprises loaned $4,000 to Baldwin Company...

Question 10

Hardin Company collected a receivable due from a credit card company (from a sale to a customer who paid with a credit card).Show the effect of collection of the credit card receivable on Ulmer's financial statements.

Accepted Answer

The answer of Hardin Company collected a receivable due from...

Question 11

On November 1,2012,Hardin Company accepted a credit card as payment for $2,000 of services rendered to one of its customers.Assume the credit card fee of 3% is recorded on the date of the sale.Show the effect of the sale and credit card fee on Ulmer's financial statements.

Accepted Answer

The answer of On November 1,2012,Hardin Company accepted a credit...

Question 12

Green Bay Corporation used the allowance method to account for uncollectible accounts expense.On June 20,2012,Green Bay wrote off an uncollectible account in the amount of $3,000.On September 1,2012,the account was collected.How would the appropriate entries on September 1 affect the financial statements?

Accepted Answer

The answer of Green Bay Corporation used the allowance method...

Question 13

Haltom Co.uses the allowance method to account for uncollectible accounts.Show how the adjusting entry to recognize uncollectible accounts expense would affect the elements of Haltom's financial statements.

Accepted Answer

The answer of Haltom Co.uses the allowance method to account...

Question 14

On October 1,2012,Falls Company loaned $10,000 to a customer for one year at 6% interest.Show the effect of this transaction on Falls' financial statements.

Accepted Answer

The answer of On October 1,2012,Falls Company loaned $10,000 to...

Question 15

On December 31,2012,Falls Company recognized the accrued interest revenue on a one-year note receivable dated October 1,2012.Show the effect of the accrual of interest on Falls' financial statements.

Accepted Answer

The answer of On December 31,2012,Falls Company recognized the accrued...

Question 16

Mohr Manufacturing,Inc.had the following sales during 2012:

Accepted Answer

The answer of Mohr Manufacturing,Inc.had the following sales during 2012:...

Question 17

Stewart Company sold 180 units @ $320 each on October 31,2012.Cash selling and administrative expenses were $15,000.The following information is also available:

Accepted Answer

The answer of Stewart Company sold 180 units @ $320...

Question 18

Warden Company has the following account balances at the end of 2012:

Accepted Answer

The answer of Warden Company has the following account balances...

Question 19

If Schulze Company is using LIFO,how would the accountant compute cost of goods sold when recording a sale under the perpetual inventory system?

Accepted Answer

The answer of If Schulze Company is using LIFO,how would...

Question 20

On September 30,2012,Falls Company collected the principal on a one-year note receivable dated October 1,2011.Show the effect of the collection of the principal on Falls' financial statements.

Accepted Answer

The answer of On September 30,2012,Falls Company collected the principal...

Quiz 5: Accounting for Receivables and Inventory Cost Flow