1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anestetic [448]
3 years ago
14

Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2013, accounts receivable totaled $670,000. Th

e allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $41,000 at the beginning of 2013 and $25,500 in receivables were written off during the year as uncollectible. Also, $2,100 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year.
Prepare journal entries to record the write-off of receivables, the collection of $2,100 for previously written off receivables, and the year-end adjusting entry for bad debt expense.

Record the write-off of receivables.
Record the reinstatement of an account previously written off.
Record collection of account previously written off.
Record bad debt expense for the year.
Business
1 answer:
Inga [223]3 years ago
3 0

Answer:

Journal entries

Explanation:

The journal entry are as follows

1. Allowance for doubtful debts $25,500

              To Account receivable $25,500

(Being the written off amount is recorded)

2. Account receivable Dr $2,100

         To Allowance for doubtful debts $2,100

(Being the reinstatement of an account previously written off is recorded)

3. Cash Dr $2,100

          To Account receivable $2,100

(Being the collection of account is recorded)

4. Bad debt expense Dr $82,900

              To Allowance for doubtful debts $82,900

(Being the bad debt expense is recorded)

It is computed below:

= $670,000 × 15% - ($41,000 + $25,500 + $2,100)

= $100,500 - $17,600

= $82,900

Only these entries are recorded

You might be interested in
On August 1, 2019, the accountant for Western Imports downloaded the company's July 31, 2019. Bank statement from the bank?s Web
Radda [10]

Answer:

Required 1.

<u>Bank Reconciliation Statement as at 31 July</u>

Balance at bank as per updated Cash Book           $28,192

Add Unpresented Cheques

Check 1429                                                 $1,248

Check 1430                                                    $140      $1,388

Less Lodgements not yet credited                             ($790)

Balance as per Bank Statement                              $28,790

Required 2.

Journal Entries :

J1

Cash $14,300 (debit)

Accounts Receivable : Foncier Ricard $14,300 (credit)

J2

Accounts Payable : Central Common $261 (debit)

Cash $261 (credit)

J3

Check 1425 $30 (debit)

Cash $30 (credit)

Explanation:

The first step is to update the Cash Book Bank Balance as follows :

<u>Debit :</u>

Balance as at July 31                                                    $14,183

Credit Transfer : Foncier Ricard                                 $14,300

Totals                                                                           $28,483

<u>Credit:</u>

Check 1425 understated ($99 - $69)                               $30

Direct Debit : Central Common                                       $261

Cash Book Updated Balance (Balancing figure)       $28,192

Totals                                                                           $28,483

Then prepare a Bank Reconciliation Statement as at 31 July :

<u>Bank Reconciliation Statement as at 31 July</u>

Balance at bank as per updated Cash Book           $28,192

Add Unpresented Cheques

Check 1429                                                 $1,248

Check 1430                                                    $140      $1,388

Less Lodgements not yet credited                             ($790)

Balance as per Bank Statement                              $28,790

Journal Entries :

J1

Cash $14,300 (debit)

Accounts Receivable : Foncier Ricard $14,300 (credit)

J2

Accounts Payable : Central Common $261 (debit)

Cash $261 (credit)

J3

Check 1425 $30 (debit)

Cash $30 (credit)

3 0
3 years ago
Evaluate the following​ statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. B
Sav [38]
To night it is fffffffffffffalse
3 0
3 years ago
A US company producing cell phones in Brazil would be counted in the measurement of the United States
stira [4]
GNP. So B is correct.

4 0
3 years ago
Amelie received an email that claimed to be from a Nigerian prince who needed help setting up
Aleksandr-060686 [28]

Answer:

Explanation:

Spam

8 0
3 years ago
Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of p
MariettaO [177]

Answer:

$66.9725

Explanation:

Data provided in the question:

Dividend:

D1 = $1.20

D2 = $1.40

D3 = $1.55

Expected future price, P3 = $82

Required return = 8.9 percent = 0.089

Now,

Stock price today = Present value of dividends and the future value

Stock price today = \frac{1.20}{(1+0.089)}+\frac{1.40}{(1+0.089)^2}+\frac{1.55}{(1+0.089)^3}+\frac{82}{(1+0.089)^3}

or

Stock price today = 1.1019 + 1.1805 + 1.2001 + 63.49

or

Stock price today = $66.9725

8 0
3 years ago
Other questions:
  • After you set a price for your product you discover that your competitors are selling the same thing at a significantly lower pr
    13·2 answers
  • Name two steps Mexico’s government did to reform their economy.
    5·1 answer
  • "a british study involving more than 11,000 participants indicated that brain-training activities over a period of six weeks ___
    14·1 answer
  • Unexpectedly high inflation tends to hurt ________ most
    15·1 answer
  • Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax
    14·1 answer
  • A venture capitalist, willing to invest $1,000,000 , has three investments to choose from. The first investment, a software comp
    14·1 answer
  • What annual growth rate is needed for a country to double its output in each of the following cases? Instructions: Round your an
    11·1 answer
  • Sammie is planning a persuasive request. What advice should she follow for the opening of her request?
    5·1 answer
  • On April 2, Rolex SA sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 of sales was rece
    13·1 answer
  • Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!