ournalize the following adjustments. (Credit account titles are automatically in
ID: 2592232 • Letter: O
Question
ournalize the following adjustments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 1,525.)
No.
Account Titles and Explanation
Debit
Credit
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(1) Services performed for customers through February 27, 2017, but unbilled and uncollected were $4,710. (2) Received notice that a customer who was billed $180 for services performed February 10 has filed for bankruptcy. Clean Sweep does not expect to collect any portion of this outstanding receivable. (3) Clean Sweep uses the allowance method to estimate bad debts. Clean Sweep estimates that 3% of its month-end receivables will not be collected. (4) Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $800 salvage value. (5) Record 1 month of insurance expense. (6) An inventory count shows $500 of supplies on hand at February 28. (7) One week of services were performed for the customer who paid in advance on February 17. (8) Accrue for wages owed through February 28, 2017. (9) Accrue for interest expense for 1 month. (10) Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to “income before taxes” to help with the income tax calculation.)Explanation / Answer
Journal Entries :
Date Accounts Titles and explanation Debit $ Credit $ Dec 31 Accounts Receivable 4710 Unbilled Services revenues 4710 (being the unbilled and uncollected revenue taken to books) Dec 31 Bad Debts 180 Services Inventory 180 (being uncollectable services performed are books as bad debts) Dec 31 Bad Debts 3% of the closing receivables Allowance for Doubtful accounts 3% of the closing receivables (being bad debts booked) Dec 31 Depreciation - Equipments (Cost - 800)/4 Accumulated Depreciation - Equipments (Cost - 800)/4 (being depreciation booked) Dec 31 Insurance Expense Prepaid Insurance Dec 31 Supplies Expense (Supplies assets - Supplies in hand on year end) Supplies assets (Supplies assets - Supplies in hand on year end) Dec 31 Unearned Revenue Service Revenue Dec 31 Wages Expense Wages payable Dec 31 Interest Expense Interest Payable Dec 31 Income Tax expense Taxes payableRelated Questions
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