Johnson receivable for MGM Resorts International. Round to one decimal place. re
ID: 2331407 • Letter: J
Question
Johnson receivable for MGM Resorts International. Round to one decimal place. receivable for Johnson & Johnson. Round to one decimal place. (a) and (b). in Journalize the following t equipment company that uses the direct write-off method of accounting for uncollectible in the of Champion Medical Co., a medical 19. Sold merchandise on account to Dr. Dale Van Dyken, $30,000. The cost of the Jan. July 7. Received $12,000 from Dr. Dale Van Dyken and wrote of the remainder owed Nov. 2. Reinstated the account of Dr. Dale Van Dyken that had been written off on merchandise sold was $20,500 on the sale of January 19 as uncollectible. July 7 and received $18,000 cash in full payment. Journalize the following transactions in the accounts of Sedona Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollect- ible receivables: May 1. Sold merchandise on account to Beijing Palace Co., $18,900. The cost of the Aug. 30. Received $8,000 from Beijing Palace Co. and wrote off the remainder owed on Dec. 8. Reinstated the account of Beijing Palace Co. that had been written off on merchandise sold was $11,200. the sale of May 1 as uncollectible. August 30 and received $10,900 cash in full payment.Explanation / Answer
Ex 9-3 Journal Entries, using direct write-off method
Ex 9-4 Journal Entries, using allowance method
Ex 9-5 Journal Entries to write off accounts receivable
Ex 9-6 - Adjusting entries
Note 1
Excess amount of Bad debts written off = $68,250
Add: Bad debt Expense @3/4th of 1% of sales = ($81,500,000 x 1%)*3/4 = $611,250
Total allowance to be created = $68,250 + $611,250 = $679,500
Note 2
Excess amount of Bad debts written off = $68,250
Add: Estimated Uncollectable amount = $575,000
Total allowance to be created = $68,250 + $575,000 = $643,250
Note 3
Bad debt Expense @1/2 of 1% of sales = ($81,500,000 x 1%)*1/2 = $407,500
Less: Credit balance of the Allowance account = $45,000
Total allowance to be created = $407,250 - $45,000 = $362,500
Note 4
Estimated uncollectable amount = $450,000
Less: Credit balance of the Allowance account = $45,000
Total allowance to be created = $450,000 - $45,000 = $405,000
Ex 9-11 Estimating doubtful accounts
Balance
(a)
Uncollectable percentage
(b)
Uncollectable amount
(a) x (b)
Therefore, total estimated uncollectable amount = $372,500
Ex 9-12 Journal entry to record Uncollectable account
Note
Excess amount of Bad debts written off = $28,400
Add: Estimated uncollectable amount = $372,500
Total allowance to be created = $28,400 + $372,500 = $400,900
Date Account Titles and Explanation Debit Credit Jan. 19 Accounts receivable a/c $30,000 Sales revenue a/c $30,000 [To record credit sales to Dr. Dale Van Dykan] Jan. 19 Cost of Goods Sold a/c $20,500 Inventory a/c $20,500 [To record the cost of sales] July 7 Cash a/c $12,000 Accounts receivable a/c $12,000 [To record the cash and Bad debt expense] July 7 Bad Debt Expense a/c $18,000 Accounts receivable a/c $18,000 [To write off the Uncollectable amount] Nov. 2 Accounts receivable a/c $18,000 Bad Debt Expense a/c $18,000 [To record the reversal entry as the uncollectable amount is recoverable] Nov. 2 Cash a/c $18,000 Accounts receivable a/c $18,000 [To record the cash collected from Dr. Dale Van Dyken]Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.