ACCT 300 Option #1 Mod 6 Receivable

Donate & Make a Difference
Question Details: #675
ACCT 300 Option #1 Mod 6 Receivable

Option #1: The Aging Method: The Smith Company Case

The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions in an Excel spreadsheet for year-end 2014 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $18,000 on January 1, 2014.

Assignment Template

Label the events below as journal entries #1 to #4, along with the dates of the entries:

February 20, 2014: Wrote off Jones account: $7,250.
May 20, 2014: Received $4,050 as partial payment on the $8,000 account receivable due from Garcia.
August 10, 2014: Received $7,250 from Jones on the account written off on February 20, 2014.
September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $4,400; Mulaka: $2,210; Quan: $1,375.

December 31, 2014: Smith Company prepared the following aging schedule for it accounts receivables:

$160,000 of Accounts Receivable (A/R) are 0-30 days late: 3% probability of not being paid.
$40,000 of A/R are 31-60 days late: 10% probability of not being paid.
$18,000 of A/R are 61-90 days late: 20% probability of not being paid.
$1,500 of A/R are later than 90 days late: 50% probability of not being paid.

Instructions:

Submit the following items in an Excel spreadsheet, labeling each as 1, 2, 3, and 4:

The four journal entries (1 to 4 above) with a one-sentence description for each
The allowance for doubtful accounts T-account
The journal entry to record bad debt expense
The balance sheet presentation of net realizable value, including gross accounts receivables of $219,500

  • Budget: $20 Ready
  • Posted by: Masa
  • Subjects: Business Ethnicity
  • Attachments: act300 mod 6 opt 1 template.xlsx (18 KB)

Solution Details: #690
Option #1: The Aging Method: The Smith Company Case Solution

Option #1- Mod 6- Receivables Students Template    
Smith Company- December 31, 2014        
               
Question 1:              
Journal# Date Account Title     Debit  
1 1-Feb Allowance for doutful accounts   $7,250  
       Jones- Accounts receivable      
  since Jones accounts receivable is deemed  uncollectible, it is written off by removing the amount from Accounts Receivable
               
2 2-May Cash     $4,050    
    Allowance for doutful accounts      
       Garcia- Accounts receivable   $4,050  
   First, there is a reversal of the write-off entry. Secondly, there is a collection of the receivable just as if it had never been writte...
Buy now with PayPal's online protection..
 Download Attachments 

Ratings
Excellentwriter

A+ - Thank you!

Agradesolutions

Thanks for the positive feedback!

Solution Details: #690
ACCT 300 Option 1 - Mod 6- Receivable

This solution i...

Buy now with PayPal's online protection..
  • Purchased: 11 x
  • Average Rating: A+
  • Posted By: Vikas

Ratings
Johnson7

A+ - Excellent Tutor

Vikas

Thank you! I appreciate the positive feedback.

Deetutor

A+ - Thank you!

Vikas

Thanks for the positive feedback!

Solution Details: #690
Option#1: The Aging Method (Smith Company) -- Correct w/ Solutions !! Accountant you can trust!

solution Answers attached below, please download the file.   C...

Buy now with PayPal's online protection..
 Download Attachments 

Ratings
Amanda

A+ - Thank you!

Rubycpamba

Thanks for the positive feedback!

Comments

Tutorialanswer.com is not sponsored or endorsed by any college or university.
Copyright © 2014-2022, Tutorial & Answer