Business, 21.12.2021 05:40 miayadeliss6910

A) Staples Corporation shows a credit balance of $21,500 in Allowance for Doubtful Accounts at December 31, 2017, before the current year's provision for uncollectible accounts. The accounts receivable aging schedule revealed the following: Not yet due
1–30 days past due 31–60 days past due 61–90 days past due Over 90 days past due
Estimated Percentage Uncollectible
$250,000 3% 660,000 6% 125,000 12%
85,000 28% 25,000 42%
Compute the total uncollectible and journalize the entry on December 31, 2019, to record bad debts expense.
b) Reeves Company had the following related to Notes Receivable. They close their books on 31st July therefore any interest owed should be accrued.
Date
Apr 16 Jan 25
i. ii. iii.
Maker
Flower Ltd Petal Inc
Face Term Interest
$18,000 120-days 9% $30,000 6-month 10%
On July 1 loaned $27,000 cash to Lily Low on a 9-month, 10% note. On July 15 Flower Ltd paid the amount due in full.
On July 24 Petal Inc note has been dishonored.
Journalize the July transactions.
c) Johnson Company had an Accounts Receivable balance of $100,000 at the beginning-of-the- year. Presented below is information for Johnson company which were not recorded:
Net sales (all on account) for the year were $720,000.
Collections on accounts receivable during the year were $570,000.
i. Prepare journal entries to record the items during the year noted above.
ii. Compute Johnson’s accounts receivable turnover and days to collect receivables for the
year.
d) The trial balance before adjustment of Braxton Inc. shows the following balances.
Accounts receivable
Allowance for doubtful accounts Net Credit Sales
Journalize the Bad Debt Expenses assuming:
i. 1.2% of Sales will be uncollectible
DEBIT
$170,000 1,750
CREDIT
$1,280,000
ii. 9% of gross accounts receivable will be uncollectible
iii. the same as part ii above instead there is a credit balance in Allowance for doubtful
accounts of $1,700 and collected $2,100 from an account previously written off. Answer the questions relating to each of the four independent situations as requested. 5 marks each

Answers: 2

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A) Staples Corporation shows a credit balance of $21,500 in Allowance for Doubtful Accounts at Decem...