C1 P2 b. Received $48.2 c. Wrote oft 59.350 of uncolle Debs d. In justing the ac

Question

C1 P2 b. Received $48.2 c. Wrote oft 59.350 of uncolle Debs d. In justing the accounts on December 31 Check ()DBad Debt dit, terms n/ 30 be uncollectible. 2015 e. Sold s870. 220 of merchandise (that had cost $650.000) on cre cash in payment of accounts receivable t1 % of accounts rec of uncollectible accounts receivable 9. Wrote off $11,090 In adjusting the accounts on December 3 lthe company estimated that i% h se $0.773 Bad Debts be uncollectible Exp nmarized transactions andits Required Prepare journal entries to record Sherman's 2014 and 2015 summarized adjusting entry to record bad debts expense. (The company uses the perpetu applies the allowance method for its accounts receivable. Round amounts to th nven transact erpetual inventory sy ounts to the nearest dolhen Gl Problem 9-58 Analyzing and journalizing notes The following selected transactions are from Springer Company. receivable transactions Nov. 1 Accepted a $4,800, 90-day C2 C3 P3 2014 Nov. Dec. 31 Accepted a $4,800, 90-day, 8% note his past-due account receivable. dated this day in granting Steve Julian a time interest on the Julian note 1 to record the accrued Made an adjusting entry 2015 Julian's payment for principal and interest on the note dated Noven ted thi ed November 1 s day in granting a time extension Check Jan 30, Cr Interest Jan. 30 Received Feb. 28 Accepted a $12,600, 30-day, 8% note da Mar. 1 Accepted a $6.200, 60-day, 12% note dated this day in granting Myron Shell Revenue $32 due account receivable from King Co. n Shelley a time ex sion on his past-due account receivable. 30 June 15 21 The King Co. dishonored its note when presented for payment. Received payment of principal plus interest from M. Shelley for the March I note Accepted a $2,000 72-day. 8% note dated this day in granting a time extensi account receivable of Ryder Solon. Accepted a $9,500, 90-day, 8% note dated this day in granting J. Felton a past-due account receivable. Apr. 30 April 30, Cr arch 1 note. Interest Revenue S124 a time extension on the nting J. Felton a time extension on ug. 26 Received payment of principal plus interest from R. Solon for the note of June 15 Sep. 19, C Sep. 19 Received payment of principal plus interest from J. Felton for the June 21 note Interest Revenue $190 Nov. 30 Wrote off King's account against Allowance for Doubtful Accounts. Required 1. Prepare journal entries to record these transactions and events. (Round amounts to the nearest Analysis Component 2. What reporting is necessary when a business pledges receivables as security for a loan and the loani still outstanding at the end of the period? Explain the reason for ths requirement and the accounting principle being satisfied

Explanation / Answer

Journal Entries in the books of Springer Company 2014 Year Amount in $ Date Description Debit Credit 1-Nov-14 Note Receivable Julian Note- Dr 4800 To Accounts Receivable from Steve Julian 4800 (Being 90 days , 8% note accepted from the Steve Julian for Past due) 31-Dec-14 Interest Receivable - Dr 64     To Interest Revenue 64 (Being Interest accrued from Notes receivable from Julian Note) (4800 * 8/100 * 60 days/ 365 days) 2015 Year 30-Jan-15 Cash - Dr 4896 To Note Receivable Julian Note 4800 To Interest Revenue 32 (4800 * 8/100 * 30 days/ 365 days) To Interest Receivable 64 (Being Cash and Interest received from the Julian Note) 28-Feb-15 Note Receivable King Co- Dr 12600 To Accounts Receivable from King Co 12600 (Being 30 days , 8% note accepted from the King Co at the time of extension on his              past due of accounts receivable) 1-Mar-15 Note Receivable Myron Shelley- Dr 6200 To Accounts Receivable from Myron Shelley 6200 (Being 60 days , 12% note accepted from the Myron Shelley at the time of extension on his              past due of accounts receivable) 30-Mar-15 Accounts Receivable from King Co 12684    To Note Receivable King Co 12600    To Interest Revenue 84 (12600 * 8/100 * 30 days/ 365 days) (Being King Co dishonored the note at the time of presented for payment and Interest charged) 30-Apr-15 Cash - Dr 6324 To Note Receivable from Myron Shelley 6200 To Interest Revenue 124 (6200 * 12/100 * 60 days/ 365 days) (Being Cash Received from Myron Shelley for Notes and Interest) 15-Jun-15 Note Receivable from Ryder Solon- Dr 2000 To Accounts Receivable from Ryder Solon 2000 (Being 72 days , 8% note accepted from the Ryder Solon at the time of extension on his              past due of accounts receivable) 21-Jun-15 Note Receivable from J.Felton- Dr 9500 To Accounts Receivable from J.Felton 9500 (Being 90 days , 8% note accepted from the J.Felton at the time of extension on his              past due of accounts receivable) 26-Aug-15 Cash - Dr 2032 To Note Receivable from Ryder Solon 2000 To Interest Revenue 32 (2000 * 8/100 * 72 days/ 365 days) 19-Sep-15 Cash - Dr 9687 To Note Receivable from J.Felton 9500 To Interest Revenue 187 (9500 * 8/100 * 90 days/ 365 days) 30-Nov-15 Allowance for doubtful accounts 12684    To Accounts Receivable from King Co 12684 (Being writeoff of accounts receivable from King co)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.