Prepare all of the necessary year-end adjusting entries

Assignment Help Accounting Basics
Reference no: EM132540203

Question - At December 31 of the current year, which is the fiscal year-end of Penguins Incorporated, the following balances appeared in the general ledger, prior to adjusting entries:

Accounts Receivable $110,000 DR

Allowance for doubtful accounts 2,000 CR

Sales Revenue (1/2 of this total = credit sales) 400,400 CR

Sales Returns & Allowances (1/2 of this total relates to credit sales) 10,400 DR

Included in the Accounts Receivable are accounts to be written off in the amount of $2

(a) Prepare all of the necessary year-end adjusting entries under the assumption that it is estimated that two percent of outstanding customer receivables will not be collected.

(b) If bad debts are estimated to three-quarters of two percent (.015) of NET credit sales, indicate how your answer to part (1) would change - just prepare the journal entry that would change!

Show how "Receivables" will be disclosed on the balance sheet as at December 31 for both parts (a) and (b).

Reference no: EM132540203

Questions Cloud

How much will be in the Deferred Rent Revenue account : How much will be in the Deferred Rent Revenue account by the end of the year, after the adjusting entries have been prepared and posted
Calculate the average price per share : On December 15, Eagle issues an additional 1000 shares for $9 per share. Calculate the average price per share. Journalize the two transactions
Compute the depreciation charge on this equipment : Compute the depreciation charge on this equipment for 2012, for 2019, and the total charge for the period from 2013 to 2018
Network restrictions surrounding web authentication service : The network restrictions surrounding the web authentication service is one layer of defense.
Prepare all of the necessary year-end adjusting entries : Prepare all of the necessary year-end adjusting entries under the assumption that it is estimated that two percent of outstanding customer receivables
Prepare appropriate journal entries for marin corporation : Marin Corporation operates a retail computer store. Prepare the appropriate journal entries for the above transactions for Marin Corporation
Speech will be to present value speech. : Select an object, person or place that represents a significant aspect of your cultural background, personality, values, ambitions, etc.
Threats to various parts of heterogeneous architectures : Discuss two different examples of threats to various parts of heterogeneous architectures and how they might manifest.
Prepare journal entries for the preceding transactions : During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, Prepare journal entries for the preceding transactions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Segment margin for store

Assume that this proposal is adopted, and that as a result sales in Store Q increase by $40,000. The new segment margin for Store Q should be:

  Selecting the appropriate component

For each of the factors in the table below, identify the appropriate internal control component by selecting the appropriate component from the list provided.

  Self-esteem change in adolescence

What is self-esteem? How does self-esteem change in adolescence?

  Compute the gain recognized by demers company

Straight-line depreciation is used. Demers reported net income of $28,000 and $32,000 for 2006 and 2007, respectively. Compute the gain recognized by Demers Company relating to the equipment for 2006

  Compute the taxable income from nelson engineering

The Nelson's spent $ 6,200 in home mortgage interest on their original acquisition cost of $450,000. Compute the taxable income from Nelson Engineering

  Prepare journal entries to summarize all transactions

Prepare journal entries to summarize all transactions in which the district engaged

  What did each cap component cost on a per-unit basis

What did each cap component cost on a per-unit basis? What is the probable type of behavior that each of the costs exhibits?

  Advise a memo advising the investors of the tax implications

Please advise a memo advising the investors of the tax implications of issuing additional shares of stock

  What is the time value of money?

What is the time value of money? Why should accountants have an understanding of compound interest, annuities, and present value concepts?

  Calculate the projected net income

Using the operating leverage, calculate the projected net income if the sales of $500,000 were to increase by 10%. Show the proof in the format above

  What can be done to maximize revnue

What can be done to maximize revnue? How can you change your budgeting process to make it more efficient?

  Given the following information compute the ending balances

given the following information compute the ending balances of the materials inventory work in process inventory and

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd