Reference no: EM132659671
The following transactions occurred for Gullible Co. during the current year ended December 31.
June 6: Reinstated the account of Ira Tate, which had been written off in the preceding year as uncollectible. Gullible received the full $1,945 cash that was owed on Ira's account.
July 19: Wrote off the $11, 150 balance owed by Contract Rigging Co, which is now bankrupt.
Aug 13: Received 35% of the $20,000 balance owed by Oops Co., a bankrupt business, and wrote off the remainder as uncollectible.
Sept 2: Reinstated the account of Ima N. Dinero, which had been written off two years earlier as uncollectible. Gullible received the full $3, 170 cash that was owed on Ima's account.
Dec. 30: Wrote off $19,090 for receivable balances that were determined to be uncollectible.
Dec. 31: Based on analysis of the aging schedule for the $960,750 of Accounts Receivable, it was estimated that $42,000 will be uncollectible. Use the T-Account to help determine the adjustment amount and then record the necessary entry.
Required:
Question A) Prepare a T-account for Allowance for Doubtful Accounts and enter a June 1 CREDIT balance of $40,000.
Question B) Journalize the above transactions and post amounts affecting the Allowance for Doubtful Accounts to the T-account. The T-account will help determine the adjustment needed for Dec 31.
Question C) Determine the expected Net Realizable Value of Accounts Receivable as of December 31. The A/R balance is given on December 31 as $960,750.
Question D) Go back to Dec. 31 and assume you had not made that adjustment yet. Instead of basing the adjustment on an analysis of receivables,
1. Prepare an adjusting journal entry based on an estimated expense of 1% of sales. Credit sales were $4,400,000 for the year.
2. Determine the balance in the Allowance for Doubtful Accounts after adjustment using this new information.
3. Determine the Net Realizable Value of Accounts Receivable as of December 31 based on this new adjustment.
|
What spending variance for medical supplies in november
: What spending variance for medical supplies in November would be closest to? Tennies Clinic uses client-visits as its measure of activity.
|
|
Prepare journal entries in general journal of ekon limited
: Ekon Limited Ekon Limited, Prepare journal entries in the general journal of Ekon Limited to record the above transactions (cash transactions included)
|
|
Explain the relationship among data mining and text mining
: Explain the relationship among data mining, text mining, and sentiment analysis. In your own words, define text mining, and discuss its most popular.
|
|
What was total amount of the company merchandise purchase
: Last month, the company's cost of goods sold was $84,000. What was the total amount of the company's merchandise purchases for the month?
|
|
Determine the expected net realizable value of accounts
: Determine the expected Net Realizable Value of Accounts Receivable as of December 31. The A/R balance is given on December 31 as $960,750.
|
|
Determine the amount of retained earnings at end of period
: Determine the amount of Retained Earnings at the end of the period. Income Summary has a debit of $201,300 and a credit of $269,700.
|
|
Discuss the company and its approach to big data analytics
: Search the UC Library and/or Google Scholar for a "Fortune 1000" company that has been successful in this integration. Discuss the company, its approach to big.
|
|
How journalize the four entries required to close accounts
: Rainbow Services Co., How Journalize the four entries required to close the accounts. If an amount box does not require an entry, leave it blank.
|
|
Identify the conclusions of the authors
: What did the authors investigate, and in general how did they do so? Indicate whether or not you think the data support their conclusions/hypothesis.
|