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Alex777 [14]
3 years ago
10

Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at one percent of credit sale

s, which were $2,700,000 during the year. On December 31, the Accounts Receivable balance was $450,000 and the Allowance for Doubtful Accounts had a credit balance of $30,600 before adjustment.
Prepare the adjusting entry to record the credit losses for the year.

Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear in the December 31 balance sheet.


a.

General Journal
Date Description Debit Credit
Dec.31 AnswerBad Debts ExpenseAllowance for Doubtful Accounts Answer Answer
AnswerBad Debts ExpenseAllowance for Doubtful Accounts Answer Answer
To record allowance for credit losses.

b. (Do not use negative signs with your answers.)

Current Assets:
AnswerAccounts ReceivableLess: Allowance for Doubtful Accounts $Answer
AnswerAccounts ReceivableLess: Allowance for Doubtful Accounts Answer
$Answer
Business
1 answer:
likoan [24]3 years ago
6 0

Answer:

Dec.31           Bad Debts Expense    27000

December 31    Balance Sheet Accounts Receivable             392400

Explanation:

Harris Company

Credit Sales for the current year $2700,000

Credit Losses = 1% of $ 2700,000= $ 27000

Add Allowance for Doubtful Accounts $ 30600 Cr

Required Adjustments          $ 57,600 Cr

General Journal

Date                     Description            Debit                Credit

Dec.31           Bad Debts Expense    27000

                         Allowance for Doubtful Accounts   27000

December 31 Balance Sheet.

                       Accounts Receivable      $450,000        

Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)

                      Accounts Receivable             392400

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On December 31, 2020, the Bennett Company had 100,000 shares of common stock issued and outstanding. On July 1, 2021, the compan
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Answer:

$5.31

Explanation:

Earnings per share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

<em>where,</em>

<u>Earnings Attributable to Holders of Common Stock is :</u>

Net Income                                                                       $650,000

Less Preference Stock dividend                                       ($71,000)

Earnings Attributable to Holders of Common Stock      $579,000

<em>and</em>

<u>Weighted Average Number of Common Stocks Outstanding :</u>

Common Stocks at Beginning outstanding                                  100,000

Stocks Sold at Weighted Average (18,000 / 2)                                9,000

Weighted Average Number of Common Stocks Outstanding    109,000

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Answer: Please refer to Explanation

Explanation:

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Having a retirement plan with your employer especially one in which you are a 100% vested is a drain on your income. It might have benefits in future when you retire but if you want to engage in financial planning, you need to have access to every penny and that includes the money going to the retirement plan.

Don’t bother to set target dates for achieving your financial goals. No

Setting a target date for various amounts in your financial goals enables you to work towards them with more determination. It is important to set target dates.

Pay credit card balances in full each month. Yes

Paying your credit card balance in full every month helps you avoid interest accruing as well as increasing your credit score. It is therefore very important to pay off the balance in full every month which will be easier as long as you charge things to it that you can afford.

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3 0
3 years ago
The following are the typical classifications used in a balance sheet:
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Answer:

<u>a. Current assets</u>

Allowance for uncollectable accounts

Inventories

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Cash

<u>b. Investments and funds  </u>

Investment in xyz corporation

<u>c. Property, plant, and equipment </u>

Equipment

Land in use

Building in use

<u>d. Intangible assets </u>

Patents

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Land held for investment

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Deferred rent revenue for the next 12 months

Notes payable due in 6 months

Accrued liabilities

Taxes payable

<u>g. Long-term liabilities</u>

Notes payable due in 5 years

<u>h. Paid-in-capital</u>

Common stock

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Explanation:

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Assets

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Equity

We have Paid In Capital such as Common Stock and Retained Earnings comprising of Profits and dividends.

Classification of items  as will be shown in the balance sheet will be done as above.

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