..ooo Verizon 15:27 5796 1) The Largest current asset on Waverly Corporation\'s
ID: 2467026 • Letter: #
Question
..ooo Verizon 15:27 5796 1) The Largest current asset on Waverly Corporation's balance sheet is Short-Term Investments. The investments cost Waverly $8,660, and their market value is $9,000 Suppose Waverly holds the investments in the hope of selling at a profit within a few months. How will Waverly classify the investments? What will Waverly report on the balance sheet at December 31, 20X6? What will Waverly report on its 20X6 income statement? Show a T-account for short term investments 2) Superior Technical Resources (STR) balance sheet at December 31, 20X2, reported Account receivable S382 Allowance for doubtful accounts (52) STR uses both the percentage -of-sales approaches to account for uncollectible receivables. and the aging Required How much of the December 31, 20X2, balance of accounts receivables did STR expect to collect? Stated differently, what was the net realizable value of STR's receivables? a) b) Journalize, without explanation 20X3 entries for STR: estimated doubtful account expense of $40, based on the percent-of sales method, all during the year i) ii) Write offs of uncollectible accounts receivable totaling $58. Prepare T-account for allowance for doubtful accounts and post to this account. Show its unadjusted balance at December 31, 20X3 December 31, 20X3, aging of ii 1) Decenber 3, ZOAS,aging of receivablesExplanation / Answer
A. The net realizable value of STR 'S receivables at December 31,20x2 is330( $382-$52)
B.The required journal entries are provided below:
B
The T- account of allowance for doubt ful accounts is provided below
c. The balance sheet presentation of accounts receivables and related allowance is provided below
$362
d.The income statement (partial) is provided below:
NO Account titles and Explanation Debit credit A Bad debt expense 40 Allowance for doubtful accounts 40 (to record bad debt expense)B
Allowance for doubtful accounts 58 Accounts receivables 58 (To write off uncollectible accounts) c Bad debt expense{47-{52+40-58}} 13 Allowance for doubtful accounts 13 (to record bad debt expense)Related Questions
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