ACC 291T Wk 4 - Apply: Connect Homework (2021 New)

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ACC 291T Wk 4 - Apply: Connect Homework (2021 New)

Warner Company’s year-end unadjusted trial balance shows accounts receivable of $117,000, allowance for doubtful accounts of $780 (credit), and sales of $460,000. Uncollectibles are estimated to be 1.50% of accounts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles.

2.  What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,200?

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $64,000, and it estimates that 2% will be uncollectible.Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:

• (a) a $1,088 credit balance before the adjustment.
• (b) a $320 debit balance before the adjustment.

3. Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $2,400 account of a customer, C. Green. On March 9, it receives a $1,900 payment from Green.1. Prepare the journal entry for January 312. Prepare the journal entries for March 9; assume no additional money is expected from Green.

4. Prepare journal entries for the following credit card sales transactions (the company uses the perpetual inventory system).  

• Sold $33,000 of merchandise, which cost $25,400, on Mastercard credit cards. Mastercard charges a 5% fee.
• Sold $6,300 of merchandise, which cost $3,650, on an assortment of bank credit cards. These cards charge a 4% fee.

5. Solstice Company, which uses the direct write-off method, determines on October 1 that it cannot collect $59,000 of its accounts receivable from its customer, P. Moore. On October 30, P. Moore unexpectedly pays his account in full to Solstice Company. Record Solstice’s entries for recovery of this bad debt.