ACCT 211 Homework 7 Accounting for Receivables Exercises Assignment solutions complete answers

ACCT 211 Homework 7 Accounting for Receivables Exercises Assignment solutions complete answers 

 

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Vail Company recorded the following transactions during November.
 

Date
General Journal
Debit
Credit
November 5
Accounts Receivable—Ski Shop
5,680
 
November 5
Sales
 
5,680
November 10
Accounts Receivable—Welcome Incorporated
1,105
 
November 10
Sales
 
1,105
November 13
Accounts Receivable—Zia Company
648
 
November 13
Sales
 
648
November 21
Sales Returns and Allowances
167
 
November 21
Accounts Receivable—Zia Company
 
167
November 30
Accounts Receivable—Ski Shop
2,304
 
November 30
Sales
 
2,304
 
1. Post these entries to both the general ledger accounts and the accounts receivable ledger subsidiary ledger accounts.
2. Prepare a schedule of accounts receivable.

 

Levine Company uses the perpetual inventory system.
 

April 8
Sold merchandise for $4,000 (that had cost $2,956) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
April 12
Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee.
 
Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)

 

Dexter Company uses the direct write-off method.
 

March 11
Dexter determines that it cannot collect $9,700 of its accounts receivable from Leer Company.
March 29
Leer Company unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.
 
Prepare journal entries to record the above transactions.

 

At year-end December 31, Chan Company estimates its bad debts as 0.60% of its annual credit sales of $726,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $363 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.

Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.

 

Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $96,000, and it estimates that 4% will be uncollectible.

Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:

(a) a $1,632 credit balance before the adjustment.
(b) a $480 debit balance before the adjustment.

 

Daley Company prepared the following aging of receivables analysis at December 31.
 

 
Total
Days Past Due
0
1 to 30
31 to 60
61 to 90
Over 90
Accounts receivable
$ 670,000
$ 416,000
$ 110,000
$ 56,000
$ 38,000
$ 50,000
Percent uncollectible
 
3%
4%
7%
9%
12%
a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.
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 $5,600 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 $2,100 debit.