Hii I’am a student of financial accounting Having a problem with these 2 sums Ca

Question

Hii I’am a student of financial accounting Having a problem with these 2 sums Can i have a solition of these. Exercise 9-3 Lui Dental began operations in January 2014 selling dental appliances to denti following transactions occurred during the first six months of operations Jan. 15 Sold appliances to Dr. Hall on account for $15,750; cost 6,400 Feb. 22 Received payment in full from Dr. Hall. Mar. 4 Sold merchandise to Dr. Evans on account for $4,400; cost 1,250 Apr. 20 Sold merchandise to Dr. Murray on account for $6,700, cost 2,990 May 31 Sold merchandise to Dr. Kim on account for $3,200; cost $1,100 Jun. 28 Received $3,000 on account from Dr. Evans. to dentists. The Required 1. Complete the following aged listing of customer accounts as of June 30, 2014 Age of Account Customer Dr. Evans 1-30 days 31-60 days 61-90 days Over 90 days Total Dr. Kim 3,200 3207 r. Murray Estimate the Allowance for Doubtful Accounts required at June 30, 2014, assuming the following uncollectible rates: 30 days, 2%; 60 days, 5%, 90 days, 15%; >90 days, 50 2. 3. Show how Lui Dental would report its accounts receivable on its June 30, 2014 4. If Dr. Evans' account needed to be written off in September 2014, how accurate is Lui balance sheet. What amounts would be reported on an income statement prepared for the six-month period ended June 30, 2014? Dental at estimating its bad debts? Exercise 9-4 At December 31, 2014, the Accounts Receivable balance of Stencier's Electronics is $300,000 The allowance for doubtful accounts has an $8,900 credil talunor. Accountants for Stenner's Electronics prepare the following aging schedule for it accounts receivable Age of Acccunts Accounts Receivable 5300,000 Estimated percent 1-30 Days 31-60 Days $140,000 $80.000 61-90 Days $70,000 Over 90 Days $10,000 uncollectible 0.5% 2.0% 6.0% 50.0% Required 1. Journalize the adjusting entry for doubtful accounts based on the aging schedule. Show 2. Show how Stenner's Electronics will report Accounts Receivable on its December 31. 3. Suppose all the facts of this situation are the same except that Allowance for the T-account for the allowance at December 31, 2014. 2014, balance sheet Accounts has a $900 debit balance. Calculate the amount of the adjusting entry Doubtful

Explanation / Answer

Exercise 9-3 1. Aged listing of customer accounts as of June 30,2014 Customers 1-30 days 31-60 days 61-90 days Over 90 days Total Dr. Evans $1,400 $1,400 Dr. Kim $3,200 $3,200 Dr. Murray $6,700 $6,700 2. The allowance for doubtful accounts required at June 30, 2014 Customers 1-30 days 31-60 days 61-90 days Over 90 days Total Dr. Evans $1,400 $1,400 Dr. Kim $3,200 $3,200 Dr. Murray $6,700 $6,700 Estimated uncollectible rates 2% 5% 15% 50% Allowance for doubtful accounts $64 $1,005 $700 $1,769 3. Amount reported in Balance sheet Accounts Receivable $11,300 Allowance for doubtful accounts ($1,769) Net Accounts receivable $9,531 Amount reported on Income statement Sales $30,050 Cost of goods sold $11,740 Working note: Date Sales COGS 15-Jan 15750 6400 4-Mar 4400 1250 20-Apr 6700 2990 31-May 3200 1100 30050 11740 4. Lui dental is partially accurate at estimating its bad debts as it estimated 50% to be bad debts over 90 days. Exercise 9-4 1. Adjusting entry for doubtful accounts Accounts receivable 1-30 days 31-60 days 61-90 days Over 90 days $300,000 $140,000 $80,000 $70,000 $10,000 Estimated percent uncollectible 0.50% 2% 6% 50% Allowance for doubtful accounts $700 $1,600 $4,200 $5,000 Bad debts $2,600 Allowance for doubtful accounts $2,600 (to record the allowance based on aging schedule) Total allowance as per aging schedule $11,500 Credit balance in allowance for doubtful accounts $8,900 Adjustment needed $2,600 2. Amount reported in Balance sheet Accounts Receivable $300,000 Allowance for doubtful accounts ($11,500) Net Accounts receivable $288,500 3. Amount of adjusting entry Total allowance as per aging schedule $11,500 Credit balance in allowance for doubtful accounts $900 Adjustment needed $10,600

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