Women, Gender and Health WGH211-01 Chapter Notes - Chapter 1-5: Osn Sports, Osn News, Dubai Tv
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The following selected transactions were taken from the recordsof Shipway Company for the first year of its operations endingDecember 31, 2016:
Apr. | 13. | Wrote off account of Dean Sheppard,$8,460. | |
May | 15. | Received $550 as partial payment onthe $7,040 account of Dan Pyle. Wrote off the remaining balance asuncollectible. | |
July | 27. | Received $8,460 from Dean Sheppard,whose account had been written off on April 13. Reinstated theaccount and recorded the cash receipt. | |
Dec. | 31. | Wrote off the following accounts asuncollectible (record as one journal entry): | |
Paul Chapman | $2,055 | ||
Duane DeRosa | 3,580 | ||
Teresa Galloway | 4,760 | ||
Ernie Klatt | 1,480 | ||
Marty Richey | 1,690 | ||
31. | If necessary, record the year-endadjusting entry for uncollectible accounts. |
Required:
A. | Journalize the transactions for2016 under the direct write-off method. If no entry is required,simply skip to the next transaction. Refer to the Chart of Accountsfor exact wording of account titles. |
B. | Journalize the transactions for2016 under the allowance method. Shipway Company uses the percentof credit sales method of estimating uncollectible accountsexpense. Based on past history and industry averages, 0.90% ofcredit sales are expected to be uncollectible. Shipway Companyrecorded $3,788,000 of credit sales during 2016. If no entry isrequired, simply skip to the next transaction. Refer to the Chartof Accounts for exact wording of account titles. |
C. | How much higher (lower) wouldShipway Companyâs net income have been under the direct write-offmethod than under the allowance method? |
X
Journal
A. Journalize the transactions for 2016 under the directwrite-off method. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
PAGE 1
JOURNAL
The following selected transactions were taken from the recordsof Shipway Company for the first year of its operations endingDecember 31, 2016:
Apr. | 13. | Wrote off account of Dean Sheppard,$8,460. | |
May | 15. | Received $550 as partial payment onthe $7,040 account of Dan Pyle. Wrote off the remaining balance asuncollectible. | |
July | 27. | Received $8,460 from Dean Sheppard,whose account had been written off on April 13. Reinstated theaccount and recorded the cash receipt. | |
Dec. | 31. | Wrote off the following accounts asuncollectible (record as one journal entry): | |
Paul Chapman | $2,055 | ||
Duane DeRosa | 3,580 | ||
Teresa Galloway | 4,760 | ||
Ernie Klatt | 1,480 | ||
Marty Richey | 1,690 | ||
31. | If necessary, record the year-endadjusting entry for uncollectible accounts. |
Required:
A. | Journalize the transactions for2016 under the direct write-off method. If no entry is required,simply skip to the next transaction. Refer to the Chart of Accountsfor exact wording of account titles. |
B. | Journalize the transactions for2016 under the allowance method. Shipway Company uses the percentof credit sales method of estimating uncollectible accountsexpense. Based on past history and industry averages, 0.90% ofcredit sales are expected to be uncollectible. Shipway Companyrecorded $3,788,000 of credit sales during 2016. If no entry isrequired, simply skip to the next transaction. Refer to the Chartof Accounts for exact wording of account titles. |
C. | How much higher (lower) wouldShipway Companyâs net income have been under the direct write-offmethod than under the allowance method? |
X
Journal
A. Journalize the transactions for 2016 under the directwrite-off method. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
PAGE 1
JOURNAL
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B. Journalize the transactions for 2016 under the allowancemethod. Shipway Company uses the percent of credit sales method ofestimating uncollectible accounts expense. Based on past historyand industry averages, 0.90% of credit sales are expected to beuncollectible. Shipway Company recorded $3,788,000 of credit salesduring 2016. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
PAGE 1
JOURNAL
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C. How much higher (lower) would Shipway Companyâs net incomehave been under the direct write-off method than under theallowance method?
Higher or Lower or No Change by $____
Classifications
Where would each of the following items most likely be reportedin a company's financial statements? Assume the monetary amount ofeach item is material.
1. | Bad debts expense | |
2. | Sales discounts taken | |
3. | Depreciation expense on sales equipment | |
4. | Loss from operations of discontinued Division B | |
5. | Earnings per share | |
6. | Gain on sale of land | |
7. | Administrative salaries | |
8. | Cash dividends declared and paid on common stock | |
9. | Gain from sale of discontinued Division B | |
10. | Loss on sale of equipment | |
11. | Advertising expense | |
12. | Merchandise inventory (ending) | |
13. | Loss from write-off of obsolete inventory | |
14. | Cash paid to acquire equipment | |
15. | Unrealized increase in fair value of available-for-salesecurities |