All categories

3 years ago

Total 0 1 to 30 31 to 60 61 to 90 over 90

Business

1 answer:

natulia [17]3 years ago

4 0

Answer:

a. $25,650

b. Journal entries

Explanation:

The computation is shown below:

a. The balance of the Allowance for Doubtful Accounts is

= Total account receivable × estimated percentage

= $570,000 × 4.5%

= $25,650

b. The adjusting entry is as follows

Bad Debt Expense $13,650 ($25,650 - $12,000)

To Allowance for Doubtful Accounts $13,650

(Being the bad debt expense is recorded)

c. The adjusting entry is as follows

Bad Debt Expense $26,650 ($25,650 + $1,000)

To Allowance for Doubtful Accounts $26,650

(Being the bad debt expense is recorded)

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George has the following capital gains and losses for 2019: $6,000 STCL, $5,000 28% gain, $2,000 25% gain, and $6,000 0%/15%/20%

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3 years ago

A seller agreed to sell a tract of land by an enforceable written contract to a buyer for an agreed price. At the time and place

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2 years ago

Prepare summary journal entries to record the following transactions for a company in its first month of operations.

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Answer:

1a. Dr Raw materials inventory $114,000

Cr Accounts payable $114,000

b(1) Dr Work in process inventory $45,500

Cr Raw materials inventory$45,500

b(2) Dr Factory overhead $20,400

Cr Raw materials inventory$20,400

c.Dr Work in process inventory 37,000

Dr Factory overhead 13,000

Cr Cash 50,000

d. Dr Factory overhead 9,125

Cr Cash 9,125

e. Dr Work in process inventory 45,500

Cr Factory overhead45,500

f. Dr Finished goods inventory $80,500

Cr Work in process inventory$80,500

g(1) Dr Cost of goods sold$80,500

Cr Finished goods inventory $80,500

g(2) Dr Accounts receivable $115,000

Cr Sales $115,000

Explanation:

Preparation of summary journal entries

1a. Dr Raw materials inventory $114,000

Cr Accounts payable $114,000

(Being to record raw materials purchased on account )

b(1) Dr Work in process inventory $45,500

Cr Raw materials inventory$45,500

(Being to Record the entry to assign costs of direct materials used)

b(2) Dr Factory overhead $20,400

Cr Raw materials inventory$20,400

(Being to record the entry for indirect materials)

c.Dr Work in process inventory 37,000

Dr Factory overhead 13,000

Cr Cash 50,000

(Being to Record the usage of direct and indirect labor, paid in cash)

d. Dr Factory overhead 9,125

Cr Cash 9,125

(Being to Record other actual overhead costs, paid in cash)

e. Dr Work in process inventory 45,500

Cr Factory overhead45,500

(Being to Record the entry to apply overhead)

f. Dr Finished goods inventory $80,500

Cr Work in process inventory$80,500

(Being to Record costs of jobs completed)

g(1) Dr Cost of goods sold$80,500

Cr Finished goods inventory $80,500

(Being to Record the cost of the jobs sold)

g(2) Dr Accounts receivable $115,000

Cr Sales $115,000

(Being to Record sales on account)

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