130 the following journal entries illustrate the two methods of accounting for uncol 4296955
130. The following journal entries illustrate the two methods of accounting for uncollectible receivables. Identify each.
(a)
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Uncollectible Accounts Expense |
450 |
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Accounts Receivable-Billings |
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450 |
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(b)
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Allowance for Doubtful Accounts |
450 |
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Accounts Receivable-Helena |
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450 |
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131. Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases. Indicate the ending balance in each case.
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(a) |
Credit balance of $400 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $8,500. |
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(b) |
Credit balance of $400 in the allowance account just prior to adjustment. Uncollectible accounts are estimated at 2% of sales, which totaled $1,000,000 for the year. |
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132. Mega Sales has Gross sales of $1,525,000.00. Of these sales, $1,175,000.00 were on accounts receivable. During the year of 2007 there were sales returns and allowances and sales discounts on sales made on account of $55,000.00. Mega Sales calculates that 6 1/2% of the period sales less sales returns and allowances and sales discounts will be uncollectible.
Calculate the net realizable value of sales and write the journal entry to recognize the period expense of uncollectible accounts.
133. Journalize the following transactions using the allowance method of accounting for uncollectible receivables.
June 10 Received $1,300 from Jan Downs and wrote off the remainder owed of $4,200.
Oct. 11 Reinstated the account of Jan Downs and received $4,200 cash in full payment.
134. At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. Bad Debt Expense is estimated at 1/2 of 1% of net sales.
Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.