5- On April 3rd, Snappy Sales decides to establish a $135.00 Petty Cash Account
ID: 2445522 • Letter: 5
Question
5- On April 3rd, Snappy Sales decides to establish a $135.00 Petty Cash Account to relieve the burden on Accounting.
(a) Journalize this event.
(b) On April 11th, the petty cash fund has receipts for mail and postage of $32.75, contributions and donations of $25.25, meals and entertainment of $68.00 and $9.75 in cash. Journalize the replenishment of the fund.
(c) On April 12th, Snappy Sales decides to increase petty cash to $175.00. Journalize this event.
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6 - At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales.
Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.
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7, The aging of Torme Designs shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible. The Allowance for Doubtful Accounts carries a credit balance of $1,135.00. Write the adjusting entry for the end of the current year.
Est Uncollectible Accts
Age Interval:
Balance:
Percentage:
Amount:
Not past due
850,000
3.50%
1~30 days past due:
47,500
5.00%
31~60 days past due:
21,750
10.00%
61~90 days past due:
11,250
20.00%
91~180 days past due:
5,065
30.00%
181~365 days past due:
2,500
50.00%
Over 365 days past due:
1,145
95.00%
Total:
939,210
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Explanation / Answer
5)
6)
Date Description Post Ref Debit Credit 3-Apr Petty cash $135 Cash at Bank $135 11-Apr mail and postage $32.75 contributions and donation $25.25 meals and entertainment $68.00 Cash $9.75 Petty Cash 135.75 Petty cash $135.75 Cash at bank $135.75 12-Apr Petty Cash $39.25 Cash at Bank $39.25Related Questions
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