Accounting Homework

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Print by: Alfear Holmes ACC557065VA016-1146-001: Financial Accounting / Week 5 Homework: Chapter 08

*Exercise 8-3 The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $28,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Elburn determines that T. Thum’s $1,400 balance is uncollectible.

(b) If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.

(c) If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.

Account Titles and Explanation Debit Credit

(a)

(b) (1)

(2)

Page 1 of 1Exercise 8-3

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Exercise 8-3

Accounts Payable Accounts Receivable Allowance for Doubtful Accounts Bad Debts Expense Buildings Cash Cost of Goods Sold Income Summary Interest Receivable Interest Revenue Inventory Land Maintenance and Repairs Expense Notes Payable Notes Receivable Other Operating Expenses Owner's Capital Owner's Drawings Prepaid Insurance Sales Discounts Sales Returns and Allowances Sales Revenue Service Charge Expense Supplies Supplies Expense

List Of Accounts CLOSE

Page 1 of 1Exercise 8-3. List Of Accounts

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