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
Doss [256]
3 years ago
13

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,529, Metlock, Inc. estimates that 7% of

its accounts receivable balance of $77,800 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Metlock, Inc. determined that B. Jared’s account was uncollectible and wrote off $1,168. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Business
2 answers:
maw [93]3 years ago
8 0

Answer:

December 31, 2021

Debit Bad debt expense  $5,446

Credit Allowance for doubtful debt  $5,446

Being entries to account for receivable that may be incollectible.

May 11, 2022,

Debit Allowance for doubtful debt  $1,168

Credit Accounts Receivable  $1,168

Being entries that write off receivables due from Jared.

June 12, 2022

Debit Bank/Cash account  $1,168

Credit Bad debt account  $1,168

Being entries to recognize receivable settled that was previously written off.

Explanation:

When a company makes sales on account/credit, the required entries are debit accounts receivable credit revenue account. On the receipt of cash, credit accounts receivables and debit cash.

However, where the receivable are assessed and the conclusion reached is that they may be incollectible, debit bad debts expense and credit allowance for doubtful debts.

Should the receivables go bad, debit allowance for doubtful debt and credit accounts receivable.

So on December 31, 2021, amount of receivables that may be incollectible

= 7% * $77,800

= $5,446

Entries required are

Debit Bad debt expense  $5,446

Credit Allowance for doubtful debt  $5,446

Being entries to account for receivable that may be incollectible.

On May 11, 2022, Metlock, Inc. determined that B. Jared’s account was uncollectible and wrote off $1,168

To write it off,

Debit Allowance for doubtful debt  $1,168

Credit Accounts Receivable  $1,168

Being entries that write off receivables due from Jared.

On June 12, 2022, Jared paid the amount previously written off

Since the amount had been completely written off the accounts receivable, the entries required are

Debit Bank/Cash account  $1,168

Credit Bad debt account  $1,168

Being entries to recognize receivable settled that was previously written off.

Alborosie3 years ago
3 0

Journal entries on December 31, 2021, May 11, 2022, and June 12, 2022

December 31, 2021

Dr Bad Debt Expense 6,975

Cr Allowance for Doubtful Accounts (7% X $77,800) + $1,529) 6,975

May 11, 2022

Dr Allowance for Doubtful 1,168

Cr Accounts receivable 1,168

June 12, 2022

Dr Accounts Receivable 1,168

Cr Allowance for Doubt Accounts 1,168

Dr Cash 1,168

Cr Account Receivable 1,168

You might be interested in
Suppose the economy is in a recessionary gap. to move equilibrium aggregate output closer to the level of potential output, the
prisoha [69]
The best option is to decrease taxes.
5 0
2 years ago
E16-4. On January 1.2013, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8
coldgirl [10]

Answer:

A. Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

B.Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital $5,692,500

Explanation:

(a) Preparation of the journal entry to record the original issuance of the convertible debentures

Dr Cash Account $10,800,000

Cr To Bonds Payable $10,000,000

Cr To Premium Payable $800,000

($10,000,000*8/100=$800,000)

(Being issue of share on convertible debenture)

b.Preparation of the journal entry to record the exercise of the conversion option, using the book value method

Dr Bonds Payable account $3,000,000

Dr Premium on bonds payable Debited $2,700,000

Cr To Common Stock $7,500

Cr Additional paid in capital$5,692,500

($3,000,000+$2,700,000-$7,500)

(Being maintain the record of outstanding conversation of debenture)

Calculation for for BONDS CONVERTED

First step is to calculate the amortization for 2013

Amortization for 2013=$10,000,000/20

Amortization for 2013=$500,000

Second step is to calculate the amortization for 2014

Amortization for 2014=$10,000,000/20

Amortization for 2014=$500,000

Third step is to Calculate the premium on bonds payable

Premium on bonds payable=$10,000,000−($500,000+$500,000)

Premium on bonds payable=$9,000,000

Now let calculate the bonds converted

Bonds converted=$9,000,000×30/100

Bonds converted=$2,700,000

Calculation for COMMON STOCK

First step is to calculate the number of bonds

Number of bonds=$10,000,000/1000

Number of bonds=10,000

Second step is to calculate Price for the bond

Price for the bond=10,000×5

Price for the bond=50,000

Third step is to Calculate for Stock Split

Stock Split=50,000/2

Stock Split=25,000

Now let calculate the common stock

Common stock=25,000×30/100

Common stock=7,500

Calculation for BONDS PAYABLE

Bonds Payable=10,000,000×30/100

Bonds Payable=3,000,000

6 0
2 years ago
Read 2 more answers
Dwayne has renters insurance that he must pay twice a year. If each payment is $84, how much money should he set aside each mont
lozanna [386]

since he has to pay it 2 times a year, it should be divided by 6. so 84/6=14

Answer: C. $14

4 0
2 years ago
Read 2 more answers
Critics of government intervention in the economy are most likely to emphasize government’s effect on—
Dmitry_Shevchenko [17]

Answer:

Critics of government intervention in the economy are most likely to emphasize government’s effect on the provision of vital services

Explanation:

When government provides vital services, infrastructures it limits critics and this enables the masses to feel the impact of government's intervention

3 0
2 years ago
Terry purchases a property. the deed includes a description of an easement given to the neighboring property. this is an easemen
lakkis [162]

This is an easement created by statute or court action.

<h3>What is a statute?</h3>

It should be noted that a statute simply means a written law that's passed by a legislative body.

In this case, purchases a property. the deed includes a description of an easement given to the neighboring property. this is an easement created by an easement created by statute or court action.

Learn more about laws on:

brainly.com/question/946945

#SPJ1

6 0
1 year ago
Other questions:
  • The main outputs of the _____ process are team performance assessments and enterprise environmental factors updates.
    13·1 answer
  • 12. What was the most important aspect of the southern economy in the late nineteenth and early twentieth centuries? a. Agricult
    9·1 answer
  • A company purchased some large machinery on a deferred payment plan. the contract calls for $40,000 down on january 1 and $40,00
    15·1 answer
  • Having never been to singapore, you should still be able to tell me the % of work force involved in primary and secondary activi
    12·1 answer
  • The business risk of a company: Multiple Choice
    5·1 answer
  • Over the years Rianna paid $65,000 in premiums on a life insurance policy with a face value of $100,000. Upon reaching 65, while
    6·1 answer
  • The policy at Sunland Company is to expense all office supplies at the time of purchase. On the last day of the accounting perio
    12·1 answer
  • I worked hard<br>my exam.<br>for passing<br>for pass<br>to pass<br>to passing​
    5·2 answers
  • For more than 20 years, the Fed has used the federal funds rate as its monetary policy target. It has not targeted money supply
    6·1 answer
  • Identify the statement that characterizes the Age Discrimination in Employment Act. Multiple Choice It permits an employer to re
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!