User Account

All Pages

Prepare the bad debts adjusting entry

Assignment Help Financial Accounting
Reference no: EM132532657

The following information is provided regarding Garry Limited's accounts receivable and allowance for doubtful accounts:

Accounts Receivable, January 1, 2019:                                                                                                                  $1,450,000

Collections of Accounts Receivable during the year:                                                                                                 $1,700,000

Write-offs of Accounts Receivable:                                                                                                                         $ 425,000

Accounts Receivable, December 31, 2019:                                                                                                               $1,800,000

Allowance for Doubtful Accounts (December 31, 2019 balance (before bad debts adjusting entry at December 31, 2019): $ 155,000(debit)

Required:

Question (a) Calculate the credit sales for the year 2019.

Question (b) Provide the journal entry that was made to write-off the uncollectible amounts during 2019.

Question (c) Ignoring your answer to (a) and assuming that credit sales for 2019 were $4.15 million, prepare the bad debts adjusting entry assuming that management estimates that 3.00% of the credit sales would be uncollectible.

Question (d) After recording your entry from part (c), is the balance in the allowance for doubtful accounts adequate? Explain

Reference no: EM132532657

Questions Cloud

How to efficiently model uncertainty in ml and nlp : More work is necessary on how to efficiently model uncertainty in ML and NLP, as well as how to represent uncertainty resulting from big data analytics.
Explain any two accounting conventions that limit the scope : Use three qualitative characteristics of financial statements to discuss this statement. explain any two accounting conventions that limit the scope
CSE1IIT Inside Information Technology Assignment : CSE1IIT Inside Information Technology Assignment Help and Solution, La Trobe University - Assessment Writing Service - To demonstrate your knowledge
Digital evidence is defined as any data stored : Consider the types of digital data that exist and how they might be useful in an investigation. identify types of digital data and how they affect your life.
Prepare the bad debts adjusting entry : Prepare the bad debts adjusting entry assuming that management estimates that 3.00% of the credit sales would be uncollectible.
How the knowledge have been applied in a practical manner : Provide a reflection of at least 500 words (or 2 pages double spaced) of how the knowledge, skills, or theories of this course have been applied.
Resistance to change is normal everyday : Resistance to change is a normal everyday aspect in the workplace.
Why each of the steps are important in data mining : Below are the steps used in data mining. Please provide why each of the steps listed below are important in data mining: Business understanding.
Determine the carrying amount to be reported as ppe : Determine the carrying amount to be reported as PPE at the end of the year. (Assume deprecation rate: Straight line method with no salvage value)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Should the company make or buy the value

Determine whether Computer Villages should discontinue the furniture line and the financial benefit (cost) of dropping it.

  Enters into a lease for computer equipment

Mr.Speakers enters into a lease for computer equipment. Mr.Speakers leases five, 27” iMacs with 5k Retina displays, the 3.5ghz quad core chipset and advanced graphics capabilities. The iMacs retail for $2,300 apiece. The lease specifies monthly payme..

  Calculation of estimated allowance for doubtful accounts

Calculation of Estimated Allowance for doubtful accounts with a change in Sales - What would you answers be for parts 1 and 2 if sales for the current period were $220,000

  What is the amount of the upfront payment option

You decide you want to sell the bond to use the cash for something else. When you check to see that the company is currently offering a new seven-year bond

  Explain how given transaction affect the accounting equation

The following list of transactions relates to a television repair business during the first month of business. Explain how each transaction affects the accounting equation.

  Calculation of current assets total assets amp net

calculation of current assets total assets amp net income.calculate 1 current assets 2 total assets 3 net income based

  Exercise of the conversion option on convertible debt

On the Statement of Cash Flows, the exercise of the conversion option on convertible debt would be: Identify which of the following is an accurate description of the proper accounting treatment or the ongoing valuation basis.

  What was the amount of interest paid in year ended september

What was the amount of interest paid in the year ended September 27, 2014? What was the amount of income taxes paid for the same period?

  What should be the required initial investment

Fishbone Corporation wants to withdraw $127,900 (including principal) from an investment fund at the end of each year for 10 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?

  Guarantee residual value

If lessee does not guarantee residual value, is this a capital lease or operating lease. Show work

  Prepare budget schedules-inventory levels

Harbor Freight plans inventory levels (at cost) at the end of each month as follows: May: $271,000, June: $226,000, July: $209,000, and August: $241,000. Sales are expected to be June: $449,000, Prepare budget schedules for June, July, and August for..

  Impact the accumulated depreciation account

If fair values are used and adjusted each balance sheet date, how do you think this will impact the accumulated depreciation account?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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