Menu
support@businesspapershelp.com
+1(805) 568 7317

160 on september 30 emerson co has 540 250 of accounts receivable emerson uses the a 4299068

 

160. On September 30, Emerson Co. has $540,250 of accounts receivable. Emerson uses the allowance method of accounting for bad debts and has an existing credit balance in the allowance for doubtful accounts of $13,750. 1. Prepare journal entries to record the following selected October transactions. The company uses the perpetual inventory system. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its October 31 balance sheet.

a. Sold $325,000 of merchandise (that cost $178,500) to customers on credit.

b. Received $425,100 cash in payment of accounts receivable.

c. Wrote off $16,700 of uncollectible accounts receivable.

d. In adjusting the accounts on October 31, its fiscal year-end, the company estimated that 3.0% of accounts receivable will be uncollectible. 

161. Loma Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

  

a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.

b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $550 credit.

c. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $300 debit. 

 

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now