Question 1

Record the following transactions for Adcock Company.
1. On April 12, sold $11,000 of merchandise to Milton Inc., terms 2/10, n/30.
2. On April 15, Milton returned $2,000 of merchandise.
3. On April 22, Milton paid for the merchandise.

Accepted Answer

The answer of Record the following transactions for Adcock Company.
1....

Question 2

Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:  Instructions
(a) Prepare the adjusting entry on December 31, 2018, to recognize bad debt expense.
(b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts.

Accepted Answer

The answer of Molina Company had a $700 credit balance...

Question 3

Eaton Company's ledger at the end of the current year shows Accounts Receivable of $150,000.
Instructions
a. If Allowance for Doubtful Accounts has a credit balance of $4,400 in the trial balance and bad debts are expected to be 10% of accounts receivable, journalize the adjusting entry for the end of the period.
b. If Allowance for Doubtful Accounts has a debit balance of $4,400 in the trial balance and bad debts are expected to be 10% of accounts receivable, journalize the adjusting entry for the end of the period.
,

Accepted Answer

The answer of Eaton Company's ledger at the end of...

Question 4

Compute the maturity value for each of the following notes receivable.
1. A $5,000, 6%, 3-month note dated July 20.
Maturity value $____________.
2. A $12,000, 9%, 150-day note dated August 5.
Maturity value $____________.

Accepted Answer

The answer of Compute the maturity value for each of...

Question 5

The December 31, 2017 balance sheet of Barone Company had Accounts Receivable of $400,000 and a credit balance in Allowance for Doubtful Accounts of $32,000. During 2018, the following transactions occurred: sales on account $1,500,000; sales returns and allowances, $50,000; collections from customers, $1,250,000; accounts written off $36,000; previously written off accounts of $6,000 were collected.
Instructions
(a) Journalize the 2018 transactions.
(b) If the company uses the percentage of receivables basis to estimate bad debt expense and determines that uncollectible accounts are expected to be 8% of accounts receivable, what is the adjusting entry at December 31, 2018?

Accepted Answer

The answer of The December 31, 2017 balance sheet of...

Question 6

Ace Distributors has the following transactions related to notes receivable during the last month of the year.
Dec. 1 Loaned $15,000 cash to K. Hogan on a 1-year, 6% note.
16 Sold goods to F. Manning, receiving a $4,800, 60-day, 7% note.
31 Accrued interest revenue on all notes receivable.
Instructions
Journalize the transactions for Ace Distributors.

Accepted Answer

The answer of Ace Distributors has the following transactions related...

Question 7

Prepare journal entries to record the following transactions entered into by Valente Company:
2017
June 1 Received a $10,000, 12%, 1-year note from Andrea Foley as full payment on her account.
Nov. 1 Sold merchandise on account to Patton, Inc. for $12,000, terms 2/10, n/30.
Nov. 5 Patton, Inc. returned merchandise worth $500.
Nov. 9 Received payment in full from Patton, Inc.
Dec. 31 Accrued interest on Foley's note.
2018
June 1 Andrea Foley honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2018.

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 8

Presented below are various receivable transactions entered into by Beran Tool Company. Indicate whether the receivables are reported as accounts receivable, notes receivable, or other receivables on the balance sheet.
a. Loaned a company officer $5,000.
b. Accepted a $3,000 promissory note from a customer as payment on account.
c. Determined that a $10,000 income tax refund is due from the IRS.
d. Sold goods to a customer on account for $4,000.
e. Recorded $500 accrued interest on a note receivable due next year.
f. Advanced $1,400 to a trusted employee.

Accepted Answer

The answer of Presented below are various receivable transactions entered...

Question 9

Stine Co. sells Christmas angels. Stine determines that at the end of December, it has the following aging schedule of Accounts Receivable:  Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Accepted Answer

The answer of Stine Co. sells Christmas angels. Stine determines...

Question 10

On December 31, 2018, the balance in Megan's Products Accounts Receivable was $680,000 and net credit sales amounted to $3,800,000 during 2018. An aging analysis of the accounts receivable indicated that $40,000 in accounts are expected to be uncollectible.
Instructions
Prepare the adjusting entries to record estimated bad debt expense using the percentage-of-receivables basis under each of the following independent assumptions:
(a) Allowance for Doubtful Accounts has a credit balance of $3,200 before adjustment.
(b) Allowance for Doubtful Accounts has a debit balance of $730 before adjustment.

Accepted Answer

The answer of On December 31, 2018, the balance in...

Question 11

Fleming Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2017, and December 31, 2018, appear below:
12/31/17 12/31/18
Net Credit Sales $400,000 $500,000
Accounts Receivable 60,000 80,000
Allowance for Doubtful Accounts 5,200 ?
Instructions
(a) Record the following events in 2018.
Aug. 10 Determined that the account of Sue King for $800 is uncollectible.
Sept. 12 Determined that the account of Tom Young for $3,700 is uncollectible.
Oct. 10 Received a check for $500 as payment on account from Sue King, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November.
Nov. 15 Received a check for $300 from Sue King as payment on her account.
(b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2018.
(c) What is the balance of Allowance for Doubtful Accounts at December 31, 2018?

Accepted Answer

The answer of Fleming Sign Company uses the allowance method...

Question 12

Determine the interest on the following notes:
(a) $2,000 at 6% for 90 days.
(b) $900 at 9% for 5 months.
(c) $3,000 at 8% for 60 days
(d) $1,600 at 7% for 6 months

Accepted Answer

The answer of Determine the interest on the following notes:
(a)...

Question 13

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips honors the note on May 8. Record the collection of the note and interest by Jackson assuming that no interest has been accrued.

Accepted Answer

The answer of On March 9, Phillips gave Jackson Company...

Question 14

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips dishonors the note on May 8. Record the entry that Jackson would make when the note is dishonored, assuming that no interest has been accrued. Assume Jackson expects collection will occur.

Accepted Answer

The answer of On March 9, Phillips gave Jackson Company...

Question 15

At December 31, 2018, Wynne Company reported Accounts Receivable of $45,000 and Allowance for Doubtful Accounts of $3,500. On January 7, 2019, Brown Enterprises declares bankruptcy and it is determined that the receivable of $1,200 from Brown is not collectible.
1. What is the cash realizable value of Accounts Receivable at December 31, 2018?
2. What entry would Wynne make to write off the Brown account?
3. What is the cash realizable value of Accounts Receivable after the Brown account is written off?

Accepted Answer

The answer of At December 31, 2018, Wynne Company reported...

Question 16

On January 6, Whitson Co. sells merchandise on account to Garcia Inc. for $7,000, terms 2/10, n/30. On January 16, Garcia Inc. pays the amount due. Prepare the entries on Whitson's books to record the sale and related collection.
(b) On January 10, Jill Hoyle uses her Berkman Co. credit card to purchase merchandise from Berkman Co. for $9,000. On February 10, Hoyle is billed for the amount due of $9,000. On February 12, Hoyle pays $4,000 on the balance due. On March 10, Hoyle is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Berkman Co.'s books related to the transactions that occurred on January 10, February 12, and March 10.

Accepted Answer

The answer of On January 6, Whitson Co. sells merchandise...

Question 17

The following data exists for Carley Company.  Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2018.

Accepted Answer

The answer of The following data exists for Carley Company....

Question 18

On February 7, Jackson Company sold goods on account to Phillips Enterprises for $5,200, terms 2/10, n/30. On March 9, Phillips gave Jackson a 60-day, 12% promissory note in settlement of the account. Record the sale and the acceptance of the promissory note on the books of Jackson Company.

Accepted Answer

The answer of On February 7, Jackson Company sold goods...

Question 19

Newton Company has the following accounts in its general ledger at July 31: Accounts Receivable $40,000 and Allowance for Doubtful Accounts $2,500. During August, the following transactions occurred.
Oct. 15 Sold $15,000 of accounts receivable to Fast Factors, Inc. who assesses a 3% finance charge.
25 Made sales of $800 on VISA credit cards. The credit card service charge is 2%.
Instructions
Journalize the transactions.

Accepted Answer

The answer of Newton Company has the following accounts in...

Question 20

Compute bad debt expense based on the following information:
(a) RLF Company estimates that 10% of accounts receivable will become uncollectible. Accounts receivable are $100,000, at the end of the year, and the allowance for doubtful accounts has a $600 credit balance.
(b) RLF Company estimates that 10% of accounts receivable will become uncollectible. Accounts receivable are $100,000 at the end of the year, and the allowance for doubtful accounts has a $500 debit balance.

Accepted Answer

The answer of Compute bad debt expense based on the...

Quiz 8: Accounting for Receivables

Record the following transactions for Adcock Company. 1. On April 12, sold $11,000 of merchandise to Milton Inc., terms 2/10, n/30. 2. On April 15, Milton returned $2,000 of merchandise. 3. On April 22, Milton paid for the merchandise.

Compute the maturity value for each of the following notes receivable. 1. A $5,000, 6%, 3-month note dated July 20. Maturity value $. 2. A $12,000, 9%, 150-day note dated August 5. Maturity value $.

Stine Co. sells Christmas angels. Stine determines that at the end of December, it has the following aging schedule of Accounts Receivable: Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Determine the interest on the following notes: (a) $2,000 at 6% for 90 days. (b) $900 at 9% for 5 months. (c) $3,000 at 8% for 60 days (d) $1,600 at 7% for 6 months

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips honors the note on May 8. Record the collection of the note and interest by Jackson assuming that no interest has been accrued.

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips dishonors the note on May 8. Record the entry that Jackson would make when the note is dishonored, assuming that no interest has been accrued. Assume Jackson expects collection will occur.

The following data exists for Carley Company. Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2018.

On February 7, Jackson Company sold goods on account to Phillips Enterprises for $5,200, terms 2/10, n/30. On March 9, Phillips gave Jackson a 60-day, 12% promissory note in settlement of the account. Record the sale and the acceptance of the promissory note on the books of Jackson Company.

Quiz 8: Accounting for Receivables

Record the following transactions for Adcock Company. 1. On April 12, sold $11,000 of merchandise to Milton Inc., terms 2/10, n/30. 2. On April 15, Milton returned $2,000 of merchandise. 3. On April 22, Milton paid for the merchandise.

Compute the maturity value for each of the following notes receivable. 1. A $5,000, 6%, 3-month note dated July 20. Maturity value $____________. 2. A $12,000, 9%, 150-day note dated August 5. Maturity value $____________.

Stine Co. sells Christmas angels. Stine determines that at the end of December, it has the following aging schedule of Accounts Receivable: Compute the net receivables based on the above information at the end of December. (There was no beginning balance in the Allowance for Doubtful Accounts).

Determine the interest on the following notes: (a) $2,000 at 6% for 90 days. (b) $900 at 9% for 5 months. (c) $3,000 at 8% for 60 days (d) $1,600 at 7% for 6 months

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips honors the note on May 8. Record the collection of the note and interest by Jackson assuming that no interest has been accrued.

On March 9, Phillips gave Jackson Company a 60-day, 12% promissory note for $5,200. Phillips dishonors the note on May 8. Record the entry that Jackson would make when the note is dishonored, assuming that no interest has been accrued. Assume Jackson expects collection will occur.

The following data exists for Carley Company. Calculate the accounts receivable turnover and the average collection period for accounts receivable in days for 2018.

On February 7, Jackson Company sold goods on account to Phillips Enterprises for $5,200, terms 2/10, n/30. On March 9, Phillips gave Jackson a 60-day, 12% promissory note in settlement of the account. Record the sale and the acceptance of the promissory note on the books of Jackson Company.

Compute the maturity value for each of the following notes receivable. 1. A $5,000, 6%, 3-month note dated July 20. Maturity value $. 2. A $12,000, 9%, 150-day note dated August 5. Maturity value $.