11) What are the two methods of accounting for uncollectible accounts?
12) Which method for accounting for uncollectible accounts is not acceptable for financial reporting purposes?
13) What account is credited in the Allowance method of recording uncollectible accounts when an uncollectible customer account is written off?
14) Under the percentage of sales method, how is Bad Debts Expense calculated?
15) Brandon Company completed an aging of their accounts receivable and came up with an estimated
amount of $6,342. The credit sales for the period are $85,000. The balance in the Allowance for Doubtful Accounts is a debit of $817. If Brandon uses 5% of credit sales as their estimating uncollectible accounts, how much will the credit be to the Allowance for Doubtful Accounts if Brandon uses the percentage of credit sales as its method of estimating uncollectible accounts?
16) A company has $317,000 in credit sales. The company uses the allowance method of determining Bad Debts Expense. The Allowance for Doubtful Accounts now has an $8,150 debit balance. If the company uses the allowance method based on 6% of credit sales, what will be the amount of the journal entry credited to Allowance for Doubtful Accounts?
17) Taylor Company has given you the following information from its aging of accounts receivable. Using
this information, determine the ending balance of the allowance for doubtful accounts.
Current
|
$24,400
|
2% uncollectible
|
31-60 days
|
7,350
|
8% uncollectible
|
61-90 days
|
3,380
|
15% uncollectible
|
91 and up
|
1,220
|
30% uncollectible
|
Current amount in the allowance for doubtful accounts is a $958 credit.
18) A company has $235,000 in credit sales. The company uses the allowance method of determining Bad Debts Expense. The Allowance for Doubtful Accounts now has a $7,250 credit balance. If the company uses the allowance method based on 7% of credit sales, what will be the amount of the journal entry credited to Allowance for Doubtful Accounts?
19) How is the "net realizable value" of accounts receivable computed ?
20) Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August 15. On October 12, she sent in a payment of $560. What is the journal entry that Tammy Company will record first to reinstate her account?
21) On March 10, 2012, Allyson Enterprises determined that its customer Betty Chow's account for $780 was considered uncollectible. If Allyson uses the allowance method, what is the journal entry required to write off Betty Chow's account?
22) Taymon Company has given you the following information from its aging of accounts receivable. Using
this information, what is the journal entry to record the periodic adjustment for bad debts? Assume the amount in the allowance for doubtful accounts is $$850 credit.
Current
|
$24,400
|
2% uncollectible
|
31-60 days
|
7,350
|
8% uncollectible
|
61-90 days
|
3,380
|
15% uncollectible
|
91 and up
|
1,220
|
30% uncollectible
|
23) A company has $295,000 in credit sales. The company uses the allowance method of determining Bad Debts Expense. The Allowance for Doubtful Accounts now has a $250 debit balance. The company uses the allowance method based on an aging of accounts receivable and determines $13,400 as uncollectible. What will be the amount of the Bad Debts Expense and what is the journal entry?
24) A company has $295,000 in credit sales. The company uses the allowance method of determining Bad Debts Expense. The Allowance for Doubtful Accounts now has a $250 debit balance. The company uses the allowance method based on 6% of credit sales. What will be the amount of the Bad Debts Expense and what is the journal entry?