п»їHW 8 вЂ“ you
ACCOUNTS RECEIVABLE JOURNAL ARTICLES
Make journal records to record the following orders:
(1) About December 15, 2008, the organization recorded $150, 000 product sales on credit rating.
(2) Upon December 23, 2008, the company estimated awful debt bills of $15, 000.
(3) On January 12, 2009, collect $100, 000 really worth of accounts receivable.
(4) After many collection attempts, the Company identified on 06 15, 2009 that it will not collect $12, 000 in accounts receivables from Au cours de Publishing. It decided to write-off this consideration.
(5) On July 15, Pendant Submitting called to talk about that they have got financial challenges but can afford to shell out $7, 000 to settle their particular $10, 500 debt in full. Vandolay Industries agreed to these terms, and reversed $7, 000 with the prior write-off. It received a $7, 000 examine from Au cours de the next day.
Content the above items to the next T-accounts:
Allowance pertaining to Doubtful Accounts
HW 8 вЂ“ 2
ESTIMATION AND SAVING OF UNCOLLECTIBLE ACCOUNTS вЂ“
AGING OF ACCOUNTS RECEIVABLE METHOD
Portion 1 вЂ“ In 2009, Vandolay reported three hundred, 000 in sales. You can actually allowance pertaining to doubtful accounts has an unadjusted credit balance of $12, 000. Vandolay Industries accountancy firm prepared the next Aging of Accounts Receivable:
Number of days unpaid
Molteplicit? Manufacturing Co.
$ you, 900
Delta Shipping Corp.
2, 2 hundred
Epsilon Industrial sectors
Zeta Industrial sectors
being unfaithful, 800
Vandolay accountants believe that receivables 0-30 days old include a 2% chance of noncollection. Receivables 30-60 days old have a 4% potential for noncollection. Receivables 60-90 days and nights old provide an 8% probability of noncollection. Receivables over 90 days old have a twenty percent chance of noncollection. The company's allocated for uncertain accounts has an unadjusted credit balance of $12, 500. Prepare the required adjusting record entry.
Negative Debt Expense
Allocated for Doubtful Accounts
HW eight вЂ“ two, CONTINUED
Portion 2 вЂ“ Assume rather that the company's allowance pertaining to doubtful accounts has an unadjusted debit harmony of $400. Prepare the required adjusting diary entry.
Bad Debt Price
Permitting for Uncertain Accounts
HW 8 вЂ“ a few
ESTIMATION AND RECORDING OF UNCOLLECTIBLE ACCOUNTS вЂ“
PERCENTAGE OF CREDIT PRODUCT SALES RECEIVABLE APPROACH
Portion 1 вЂ“ In 2009, Vandolay reported three hundred, 000 in sales. You can actually allowance intended for doubtful accounts has an unadjusted credit balance of $12, 000. Based upon prior experience, management estimates that installment payments on your 5% of sales will result in bad debts. Prepare the required changing journal entry.
Bad Personal debt Expense
Allowance for Doubtful Accounts
Part 2 вЂ“ Assume rather that the business allowance intended for doubtful accounts has an unadjusted debit harmony of $400. Prepare the required adjusting diary entry.
Awful Debt Expense
Permitting for Skeptical Accounts
HW almost eight вЂ“ some
On 04 1, 2008, Vandolay financial loans a $12, 000 note to a customer opening a brand new store. The note, which bears 10% annual interest, turns into due upon March 23, 2009. Put together the required journal entry.
Take note Receivable
On January 31, 08, Vandolay accumulated interest intended for the part of the year the note was outstanding. Make the required adjusting journal entry.