April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable $ 1,980,000 dr. Special accounts receivable 261,000 dr. Accounts receivable-U.S. 115,000 dr. Allowance for doubtfulaccounts 176,950 cr. Allowance for sales discounts 49,500 cr. The following transactions and events are noted: 1. Ananalysis of accounts receivable indicates that $980,000 are still in the discount period. An allowance of $98,000 isneeded for sales discounts. 2. An analysis of accounts receivable indicated that $216,000 of accounts receivable shouldbe written off. Of the remaining balance, 70% was current, and, after the allowance for sales discounts, approximately 5% was deemed doubtful. Of the 30% noncurrent, 65% was doubtful. 3. The U.S. account receivable was recorded whenthe exchange rate was $1.15. The exchange rate at year-end was $1.10. 4. The special account receivable was a singleaccount receivable from a customer with an excellent credit rating that was transferred to a financial institution at adiscount rate of 5% during the period. The cash collected from the financial institution was credited to an account called"Miscellaneous credits." 5. Management has determined that this transaction was to be recorded as a sale/derecognitionbut has not yet made the necessary entry. 6. The company has a note receivable that has not yet been recorded. Thenote is a $98,000, three-year note that bears an interest rate of 5%. Interest is paid annually. The note was issued on 1November 20X7 because of a sale. The market interest rate for accounts of this risk is 10%. Prepare the following journalentries: 1. Record the Allowance for sales discounts. 2. Record the allowances for doubtful accounts. 3. Record the baddebt expenses. 4. Record the entry for exchange loss. 5. Record the cash collected from financial institution was creditedto an account called "Miscellaneous credits."and at a discount rate of 5% during the period. 6. Record the notesreceivable of 98,000, three year note that bears interest rate of 5%. 7. Record the entry for interest receivable anddiscount on notes receivable. Please use the present value tables to calculate as well. Please explain all numbers in detailincluding basic information. Thank you very much in advance.

Journal entry records the accounting transactions of a business in a journal book. All the business…

April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable $ 1,9 80,000 dr. Special accounts receivable 261,000 dr. Accounts receivable-U.S. 115,000 dr. Allowance for doubtful accounts 176,950 cr. Allowance for sales discounts 49,500 cr. The following transactions and events are noted: 1. An analysis of accounts receivable indicates that $980,000 are still in the discount period. An allowance of $98,000 is needed for sales discounts. 2. An analysis of accounts receivable indicated that $216,000 of accounts receivable should

April Ltd. reported various selected balances in its 31 December 20X7 unadjusted trial balance: Accounts receivable $ 1,9 80,000 dr. Special accounts receivable 261,000 dr. Accounts receivable-U.S. 115,000 dr. Allowance for doubtful accounts 176,950 cr. Allowance for sales discounts 49,500 cr. The following transactions and events are noted: 1. An analysis of accounts receivable indicates that $980,000 are still in the discount period. An allowance of $98,000 is needed for sales discounts. 2. An analysis of accounts receivable indicated that $216,000 of accounts receivable should

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,150. Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $2,360 Greg Gagne 1,470 Amber Kisko 5,620 Shannon Poole 3,260 Niki Spence 900 Dec. 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel Aug. 14 Cash…
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. Accounts Receivables 849,555 1/6 Balance Allowance for Doubtful Debts 1/6 Balance 12,100 During June, the following transactions occurred: 1. Revenue earned on credit, $1,195,000. 2. Sales returns, $24,100. 3. Accounts receivable collected, $1,400,000. 4. Accounts written off as uncollectable, $15,851. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June. Ignore GST. Required: (a) Prepare general journal entries to record the four transactions and to adjust the Allowance for Doubtful Debts account. (b) Show how accounts receivable and the allowance for doubtful debts would appear on the balance sheet at 30 June. (c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June, paid its account in full.…
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Required:1. Prepare journal entries for each transaction.2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on theinformation presented and balance off each account.3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for theAccounts Receivable.4. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31
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Required information [The following information applies to the questions displayed below.] On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Expected Percent Uncollectible 1.20% Accounts Receivable $ 820,000 328,000 65,600 32,800 13,120 Accounts Receivable Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31. X Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X X Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due X X Percent Uncollectible (#.##%) || = = = 1.95 6.45 32.50 67.00 = Estimated Uncollectible
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(c) What is the balance of accounts receivable on it December 31 balance sheet? Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $ 180,000 1% 31-60 days past due 40,000 2 61-120 days past due 22,000 5 121-180 12,000 10 Over 180 days past due 8,000 25 Total accounts receivable $ 262,000