Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Intermediate AccountingI Practice quiz 5- Chapter 7 5 Points NAME 1. The Decembe

ID: 2508329 • Letter: I

Question


Intermediate AccountingI Practice quiz 5- Chapter 7 5 Points NAME 1. The December 31, 2016 balance sheet for Campbell, Inc. included the following: Credit -Debit. S 145,000 Accounts receivable Allowance for doubtful accounts Allowance for sales returns and allowances 12,500 7,500 During 2017, the following transactions occurred: Sales on account $760,000. Campbell uses Sales returns and allowances, $37,000 Collections from customers, Accounts written off $15,000. Previously written off accounts of $3,500 were collected. At year-end, the allowance for doubtful accounts was estimated to need a balance equal to 6.5% of the gross ending accounts receivable balance. the gross method for sales recording. s695,000 of which S65,000 qualified for a l% discount. Jounalize the 2017 transactions. Disregard any impact on inventory. (3 points) Date Account Titles Debit Credit

Explanation / Answer

2017 Accounts Receivable 760000 Sales 760000 Allowance for sales returns & allowances 7500 Sales returns & allowances 29500 Accounts Receivable 37000 Cash 694350 Sales discounts 650 Accounts Receivable 695000 Allowance for doubtful accounts 15000 Accounts Receivable 15000 Accounts Receivable 3500 Allowance for doubtful accounts 3500 (Restoration of previously written-off account) Cash 3500 Accounts Receivable 3500 (Collection of the above a/c.) Bad debt expense 9270 Allowance for doubtful accounts 9270 (158000*6.5%)-1000 (New provision) Ledger accounts Beg. Balance 145000 Accounts Receivable 760000 Accounts Receivable 37000 Accounts Receivable 695000 Accounts Receivable 15000 Accounts Receivable 3500 Accounts Receivable 3500 158000 Beg. Balance 12500 Allowance for doubtful accounts 15000 Allowance for doubtful accounts 3500 1000 New provision 9270 10270 (158000*6.5%= 10270)

Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
Chat Now And Get Quote