Open the following selected accounts recording the opening balances as of January 1 of the current year.
114.1
Allowance for doubtful accounts
12,200 Credit
313
Income summary
718
Bad debts expense
3.Record the following transactions in general journal form in the Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab.
4.Post these transactions to the three selected accounts above and to Accounts receivable.
5.Enter the ending balances in the three accounts above and enter the ending balance in the Accounts Receivable account.
Apr 1, 09
Accepted a $20,000, one - year, 8% note dated April 1 from Bruce Hanson for the sale of inventory; Cost of Goods Sold was $16,500.
June 27
Wrote off the $2,375 balance owed by Miller Corp., which has no assets.
Oct. 5
Received 25% of the $12,000 balance owed by F.M. Knox Co., a bankrupt, and wrote off the remainder as uncollectible.
Dec. 31
Based on an analysis of the $257,724 of accounts receivable, it was estimated that $14,500 will be uncollectible. Record the adjusting entry using the Aging method.
Dec. 31
Record the adjusting entry for interest accrued on the Bruce Hanson note
Dec. 31
Record the entries to close the appropriate accounts into Retained Earnings.
April 1, 10
Collected the maturity value on the Hanson note.
6.Determine the net accounts receivable (the amount Summer expects to collect as of December 31.
7.Compute the accounts receivable turnover and the dayâs sales in receivables for the year. Assume that there were $1,800,000 sales account.
8.How is Summer Company doing with collection of their accounts receivable compared to the industry? Assume the industry average for the accounts receivable turnover is 11 and the industry average for the dayâs sales in receivables is 37 days?
Open the following selected accounts recording the opening balances as of January 1 of the current year.
| 114.1 | Allowance for doubtful accounts | 12,200 Credit |
| 313 | Income summary | |
| 718 | Bad debts expense |
3.Record the following transactions in general journal form in the Group Project Excel Spreadsheet Problem 2 Parts 2 - 6 tab.
4.Post these transactions to the three selected accounts above and to Accounts receivable.
5.Enter the ending balances in the three accounts above and enter the ending balance in the Accounts Receivable account.
| Apr 1, 09 | Accepted a $20,000, one - year, 8% note dated April 1 from Bruce Hanson for the sale of inventory; Cost of Goods Sold was $16,500. |
| June 27 | Wrote off the $2,375 balance owed by Miller Corp., which has no assets. |
| Oct. 5 | Received 25% of the $12,000 balance owed by F.M. Knox Co., a bankrupt, and wrote off the remainder as uncollectible. |
| Dec. 31 | Based on an analysis of the $257,724 of accounts receivable, it was estimated that $14,500 will be uncollectible. Record the adjusting entry using the Aging method. |
| Dec. 31 | Record the adjusting entry for interest accrued on the Bruce Hanson note |
| Dec. 31 | Record the entries to close the appropriate accounts into Retained Earnings. |
| April 1, 10 | Collected the maturity value on the Hanson note. |
6.Determine the net accounts receivable (the amount Summer expects to collect as of December 31.
7.Compute the accounts receivable turnover and the dayâs sales in receivables for the year. Assume that there were $1,800,000 sales account.
8.How is Summer Company doing with collection of their accounts receivable compared to the industry? Assume the industry average for the accounts receivable turnover is 11 and the industry average for the dayâs sales in receivables is 37 days?
