Homework: HW08.01 core: 0 of 5 pts 8-27A (similar to) On August 31, 2016, Rasebu

Question

Homework: HW08.01 core: 0 of 5 pts 8-27A (similar to) On August 31, 2016, Rasebud Floral Supply had a $155,000 debit balance in Accounts Receivable and a $8.200 credit balance in Allowance for Bad Debts. During Save 15 of 18 (10 complete) HW Score: 28.26%, 14.13 of 50 pts Question Help September, Rosebud made Sales on account, $580,000. Ignore Cost af Goods Sold. . Collections on account, S613,000 Write-offs af uncollectible receivables, $8,000. Read the requirements Requirement 1. Journalize all September entries using the alon ance method. Bad Debts Expense was estimated at 4% af credt sales. Show all September activity in Accounts Receivable. Alowance for Bad Debts and Bad Debts Expense (post to these T accounts). (Record debits first thencrets Select the explanation on the last line of the journal entry table.) Begin by joumalizing all September entries using the alowance method. Sales on account, $580,000. Ignore Cost of Goods Sold Date Accounts and Explanation Debit Credit Sep. 30 Requirements 1. Joumalize all September entries using the alowance method. Bad debts expense was estimated at 4% of credit sales. Show all September activity in Accounts Receivable. Allowance for Bad Debts, and Bad Debts Expense (post to these T-accounts). Using the same facts. assume that Rosebud used the drect write uncollectble receivables. Joumaize all September entries using the direct wite-off method Post to Accounts Receivable and Bad Debls Expense, and show their balances at September 30, 2016 2. method to account for 3, What amount of Bad Debts Expense would Rosebud report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason 4. What amount of nef accounts receivable would Rosebud report on its September 30, 2016, balance sheet under each of the two methods? Which amount is more realistic? Give you Print Done

Explanation / Answer

1. In the books of Rosebud Floral Supply:

Accounts Receivable:

Allowance for Bad Debts:

Bad Debt Expense

2.

3. Bad debt expense:

Allowance method : $ 23,200

Direct write-off method : $ ( 23,200 + 8,000) = $ 31,200.

4. Net accounts receivable:

Allowance method : $ 92,600

Direct write-off method : $ 84,600

Transaction/ Event Account Titles and Explanations Debit Credit September 30 $ $ a. Accounts Receivable 580,000 Sales 580,000 To record sales on account b. Cash 613,000 Accounts Receivable 613,000 To record collections on account c. Allowance for Bad Debts 8,000 Accounts Receivable 8,000 To write off uncollectible receivables d. Bad Debt Expense 23,200 Allowance for Bad Debts 23,200 To record bad debt expense

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.