User Account

All Pages

Repeat the journal entry for the December transaction

Assignment Help Accounting Basics
Reference no: EM132527531

Question - Watts Ltd uses the allowance method of recording bad debts and had a credit balance of $8,000 in the Allowance for Doubtful Debts account on 1 December 2016. The following transactions occurred in December 2016 and January 2017:

18 Dec 2016 Watts Ltd wrote off a total of $12,800 accounts receivable as uncollectable.

31 Dec 2016 Watts Ltd conducted an ageing analysis of Accounts receivable at the end of financial year 2016. The analysis reveals that the Allowance for Doubtful Debts account should have a credit balance of $11,000 as at 31 December. (Hint: an adjustment to the Allowance for Doubtful Debts account is required).

18 Jan 2017 A cheque for $800 is received from A. Morris, whose account was previously written off as uncollectable on 10 December 2016.

Required -

a) Prepare journal entries to record all the above transactions/events.

b) Repeat the journal entry for the 18 December 2016 transaction, assuming that Watts Ltd uses the direct write-off method of accounting for bad debts, instead of the allowance method.

Reference no: EM132527531

Questions Cloud

Calculate the amount of interest capitalized for the year : With the assumption the company uses the specific interest method, calculate the amount of interest capitalized for the year
Present short-term interest rates in the interbank market : Present short-term interest rates (annualized) in the interbank market are as follows:
Determine the dealership sales price variance for the month : The budget for the month was to sell 12 cars at an average price of $15,200. Compute the dealership's sales price variance for the month.
Write down the important formulas : During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow
Repeat the journal entry for the December transaction : Repeat the journal entry for the 18 December 2016 transaction, assuming that Watts Ltd uses the direct write-off method of accounting for bad debts
Find the budgeted amounts of fixed and variable costs : Find the budgeted amounts of fixed and variable costs for 15,000 units would be? Based on a predicted level of production and sales of 12,000 units
What is the discounted payback period : An investment project has an initial cost of $382, and cash flows $105, $130, $150, and $150 for Years 1 to 4, respectively. The cost of capital is 9 percent. W
What would be the financial advantage of buying arburetors : Given this new assumption, what would be the financial advantage (disadvantage) of buying 20,000 carburetors from the outside supplier?
What is the expected cost of payment : Boeing just signed a contract to sell a Boeing 787 aircraft to Air France. Air France will be billed €20 million which is payable in one year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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