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Wednesday, 23 October 2013

Carmack Company has credit sales of $2.60 million for year 2011. On December 31, 2011, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,566. Carmack prepares a schedule of its December 31, 2011, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2011 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 520,000 Not yet due 0.80 % 208,000 1 to 30 days past due 1.55 41,600 31 to 60 days past due 6.05 20,800 61 to 90 days past due 30.50 4,160 Over 90 days past due 63.00

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Carmack Company has credit sales of $2.60 million for year 2011. On December 31, 2011, the company’s Allowance for Doubtful Accounts has...

Lopez Company began operations on January 1, 2010, and it estimates uncollectible accounts using the allowance method. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2010 a. Sold $1,352,900 of merchandise (that had cost $979,400) on credit, terms n/30. b. Wrote off $18,100 of uncollectible accounts receivable. c. Received $672,500 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable will be uncollectible. 2011 e. Sold $1,507,500 of merchandise (that had cost $1,313,800) on credit, terms n/30. f. Wrote off $26,200 of uncollectible accounts receivable. g. Received $1,356,100 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.40% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Lopez’s 2010 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system.) (Round your intermediate calculations to the nearest dollar amount.)

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Lopez Company began operations on January 1, 2010, and it estimates uncollectible accounts using the allowance method. During its first ...

Following are selected transactions Deshawn Company for 2010. Dec. 13 Accepted a $20,000, 45-day, 8% note dated December 13 in granting Latisha Clark a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Clark note. First, complete the table below to calculate the interest amounts at December 31st.

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Following are selected transactions Deshawn Company for 2010.    Dec. 13   Accepted a $20,000, 45-day, 8% note dated December...