Basic Accounting Homework (Very Easy for Accountants)
fakehwaccount
1. value:1.00 points
Ch 9. Homework - Group B (graded) instructions | help
Exercise 9-7 Percent of receivables method L.O. P2 Hecter Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.
Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $190,000 $132,000 $30,000 $12,000 $ 6,000 $10,000 Percent uncollectible 1% 2 % 4 % 7 % 12% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 3.5% of total
accounts receivable to estimate uncollectibles, instead of the aging of receivables method. (Omit the "$" sign in your response.)
Allowance for doubtful accounts $
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 $300 credit. (Omit the "$" sign in your response.)
Date General Journal Debit Credit
Dec 31 Bad debts expense
Allowance for doubtful accounts
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 $200 debit. (Omit the "$" sign in your response.)
Date General Journal Debit Credit Dec 31 Bad debts expense
Allowance for doubtful accounts
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©2014 McGraw-Hill Education. All rights reserved.
Daniel NashPrinciples of Accounting I: acg2001_474426
2. value:1.00 points
Ch 9. Homework - Group B (graded) instructions | help
Exercise 9-14 Notes receivable transactions L.O. P3 Following are selected transactions Deshawn Company for 2010 and 2011. 2010 Dec. 13 Accepted a $12,000, 45-day, 6% note dated December 13 in granting Latisha Clark a time
extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Clark note. 2011 Jan. 27 Received Clark’s payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $6,000, 9%, 90-day note dated March 3 in granting a time extension on the pastdue
account receivable of Shandi Company.
17 Accepted a $4,000, 30-day, 10% note dated March 17 in granting Juan Torres a time extensionon his past-due account receivable. Apr. 16 Torres dishonors his note when presented for payment. May 1 Wrote off the Torres account against the Allowance for Doubtful Accounts. June 1 Received the Shandi payment for principal and interest on the note dated March 3. Prepare journal entries for the above transactions for 2011. (Use 360 days a year. Do not round intermediate calculations and round your final answers to nearest dollar amount. Omit the "$" sign in your response.)
Date General Journal Debit Credit 2011
Jan. 27 Cash
Interest revenue Interest receivable Notes receivable-L. Clark Mar. 3 Notes receivable-Shandi Co
Accounts receivable-Shandi Co
17 Notes receivable-J. Torres
Accounts receivable-J. Torres
Apr. 16 Accounts receivable-J. Torres
Interest revenue Notes receivable-J. Torres
May 1 Allowance for doubtful accounts
Accounts receivable-J. Torres
June 1 Cash
Interest revenue Notes receivable-Shandi Co
rev: 05_07_2013_QC_30241
eBook Link references
©2014 McGraw-Hill Education. All rights reserved.
Daniel NashPrinciples of Accounting I: acg2001_474426