& S5-11 (book/static) Recelvable and a credit balance of $4,000 in Allowance for
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Question
& S5-11 (book/static) Recelvable and a credit balance of $4,000 in Allowance for Uncollectible Accounts Service revenue (all on credit) for the year At the end of the current year (before adjusting entries), Holliday Corporation had a balance of $75,000 in Accounts totaled $450,000 Read the requirements rate of 2% of credit sales what is the ending balance ofthe Expense if Holliday Corporation estimates its uncollectible-account expense using a Requirement 1. Using the percent-of-sales method, calculate the amount of Uncollectible-Account Allowance for Uncollectible Accounts under this scenario? of uncollectible-account expense using the percent-of-salos mothod. The ending uses the aging-of -receivables method. Holiday Corporation of uncollectible-account expense using the aging-of-receivables mothod. The ending Holliday Corporation has balance of the Allowance for Uncollectible Accounts is 13,000 under this soenario estimates that its Allowance for Uncollestible Accounts should have a credit balance of $14,000. Caloulate the amount of its Allowance for Requirement 2. Now assume that Holiday Corporation u Uncollectible-Account Expense. What is the ending balance of the Allowance for Uncolectible Accounts under this scenario? Holliday Corporation has balance of the Allowance for Uncollectible Accounts is $ under this scenario S5-10 (book/static) urti try exper esqg Pat Od Tye, vole tie la unt b4%ofendaa osAtDer be 3 Dung its frst year of operati ns,OldTy ne Fu iture Rest rat on, he had sales of $461,00 allona receivable total $56,000. The company uses the alowance method to account for uncollectibies (Assume that there are no expected sales refunds or sales retums for this exncise) 1 Make Old Tyme's jounal entry for unoollectible-account expense using the percent-of-sales melthod 2 Show how Old Tyme should report accounts recelvable on its balance sheet at December 31, 2016 sing trhe percent-of-sales method. (Record debilts firot, hen credts Exclude axplanations from jounal entries) the 1. Make Old Tymes journal entry for unolecible-account expense Journal Entry Debit Credit Dec 31 Accounts Payable Accounts Receivable Allowance for Uncolectible Accounts Cash Choose from anyusuremer any numm "gRneds and then click Check Answer. Check Anawer S5-7 (similar to) EQuestion Hep On April 3, Leaven Company sold $30,000 of merchandise to Ranger Corporation, terms 5/10, n/30, FOB shipping point. Leaven Company's cost of sales for this merchandise was $24,000. The merchandise leh Leaven Compary's facility on April 4 and arrived at Ranger Corporation on April 10. Ranger Corporation paid the involice for the merchandise on April 11 Read the requirements Requirement 1 Prepare th ejour ai ontries for Leaven Company for the sale of the merch and so, the cost of the sale, and the ted e o pt of pay ent fr n Ranger Corporation Assume that Rar within the discount period. (You do not need to record any estimated returnsirofunds for this exercise) (Record dabits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the sale of the merchandise.(Do not reoord the cost of the sale, we will do that in the next step ) er orporation takes da art pay t is Journal Entry Dabit Credit Date April 4 S5-7 (similar to On April 3, Leaven Company sold $30,000 of merchandise to Ranger Corporation, torms 5/10, n/30, FOB shipping point April 4 and a orporation paid the invoice for the merchandise on April 1 Accounts Receivable Cash Read the Requirement 1. Cost of Goods Sold within the discou Estimated Returns Inventory hy for the sale of the merchandise, the cost of the sale, ated returns/refunds for this exercise.) (Record debits firs Prepare the joun Inventory ot record the cost of the sale, we will do that in the next st Refund Liability Sales Returns and Allowances Sales Revenue Selling Expense Debit Credit Date April 4Explanation / Answer
Q S5-11 Req 1: Service revenue: 450,000 Estimated bad debts 2% Bad debts expense 9000 Allowance balance at the end: Beginning balance of Allowance 4000 Add: Bad debts expense 9000 Ending Balance of Allowance 13000 Req 2 Allowance balance at the end: 14000 Allowancec at the beginning: 4000 Bad debts expense 10000 Holding company has $ 10000 uncollectibles expense using the percent of sales Balance of Allowance for uncollectible accounts is $14,000
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