Log in
HomeStudy Guides420,000CA160,000

AFM123 Study Guide - Trial Balance, Kraft Foods Inc

190 views1 pages
20 Dec 2014
School
University of Waterloo
Department
Accounting & Financial Management
Course
AFM123
Professor
Richard Ennis

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Kraft foods inc. is the second-largest food company in the world. Assume the company recently reported the following amounts in its unadjusted trial balance as of december 31, 2011 (all amounts in millions): Required: assume kraft uses of 1 percent of sales to estimate its bad debt expense for the year. Prepare the adjusting journal entry required for the year, assuming no bad debt expense has been recorded yet. dr bad debt expense (+e,-se) cr allowance for doubtful accounts (+xa,-a) ( = ,201 x 0. 5%) 211: if one of kraft"s main customers declared bankruptcy in 2012, what journal entry would be used to write off its balance? dr allowance for doubtful accounts (-xa, +a) cr accounts receivable (-a) 15: show the t-account for afda resulting from the information in #1 and #2. End. balance: how would accounts receivable be presented on kraft"s year-end balance.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers

Related Documents

AFM123
Final Exam
Study Guide
AFM123 Study Guide - Kraft Foods Inc, Trial Balance, Accounts Receivable
AFM123
Final Exam
Study Guide
AFM123 : Aging of AR - QUESTION.pdf
AFM123
Final Exam
Study Guide
AFM123 Study Guide - Accounts Receivable, Trial Balance, Kraft Foods Inc

Related Questions

The A.T. Cross Company is well known for its Crosspens. The company recently reported the following amounts in itsunadjusted trial balance as of December 31, 2010.

1.

Assume Cross uses 1/2 of 1 percent ofsales to estimate its bad debt expense for the year. Prepare theadjusting journal entry required at December 31, 2010, forrecording Bad Debt Expense. (TIP: The percentage of credit salesmethod directly calculates Bad Debt Expense.)

2.

Assume instead that Cross uses the aging of accounts receivablemethod and estimates that $1,005,000 of Accounts Receivable will beuncollectible. Prepare the adjusting journal entry required atDecember 31, 2010, for recording bad debt expense. (TIP: The agingof accounts receivable method focuses on calculating what theadjusted Allowance for Doubtful Accounts balance should be. Youneed to consider the existing balance when determining theadjustment.)

3.

Assume instead that Cross uses the aging of accounts receivablemethod and estimates that $1,005,000 of Accounts Receivable will beuncollectible and unadjusted balance in Cross
At December 31, Folgey's Coffee Company reports the following results for its calendar year.
  
Cash sales $900,000
Credit sales $300,000
  
Its year-end unadjusted trial balance includes the following items.
  
Accounts receivable $125,000 debit
Allowance for doubtful accounts $5,000 debit
  
a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.5% of credit sales.
b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 0.5% of total sales.
c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.

On December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 900,000 Credit sales 300,000 Its year-end unadjusted trial balance includes the following items. Accounts receivable $ 125,000 debit Allowance for doubtful accounts 5,000 debits Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (a) 3% of credit sales, (b) 1% of total sales and (c) 6% of year-end accounts receivable.