I need help on HW 7.1 - 7.4 please. Thank you :) HW Problem 7.1 - Hansel Company

Question

I need help on HW 7.1 - 7.4 please. Thank you :) HW Problem 7.1 - Hansel Company had 2011 credit sales of $2,250,000 and cash sales of $1 million year end, Hansel Co's accounts receivable balance was S600,000 and the allowance for doubtful ac had a $15,000 debit balance. a. What journal entry is required under each of the following assumptions? i. Hansel estimates 2.5% of credit sales are uncollectible ii. Hansel estimates 1.5% of total sales are uncollectible iii. Hansel estimates 6%ofaccounts receivable are uncollectible b. Show the balance sheet presentation for parts i and ii.

Explanation / Answer

7.1 Hansel Company

a.

b.

Per Chegg guidelines, please post independent questions separately. Thank you.

Transaction General Journal Debit Credit i. Bad debt expense 56250 Allowance for uncollectible accounts 56250 (2.5% x $2250000) (To record bad debt expense) ii. Bad debt expense 48750 Allowance for uncollectible accounts 48750 (1.5% x $3250000) (To record bad debt expense) iii. Bad debt expense 51000 Allowance for uncollectible accounts 51000 [(6% x $600000) + $15000] (To record bad debt expense)

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