accounting post lecture
HW 8 – 1
ACCOUNTS RECEIVABLE JOURNAL ENTRIES
Prepare journal entries to record the following transactions:
(1) On December 15, 2008, the company recorded $150,000 sales on credit.
(2) On December 31, 2008, the company estimated bad debt expenses of $15,000.
(3) On January 12, 2009, collect $100,000 worth of accounts receivable.
(4) After many collection attempts, the Company determined on June 15, 2009 that it would not collect $10,000 in accounts receivables from Pendant Publishing. It decided to write-off this account.
(5) On July 15, Pendant Publishing called to say that they have had financial problems but can afford to pay $7,000 to settle their $10,000 debt in full. Vandolay Industries agreed to these terms, and reversed $7,000 of the prior write-off. It received a $7,000 check from Pendant the next day.
Post the above entries to the following T-accounts:
Accounts Receivable
Allowance for Doubtful Accounts
HW 8 – 2
ESTIMATION AND RECORDING OF UNCOLLECTIBLE ACCOUNTS –
AGING OF ACCOUNTS RECEIVABLE METHOD
Part 1 – In 2009, Vandolay reported $300,000 in sales. The company’s allowance for doubtful accounts has an unadjusted credit balance of $12,000. Vandolay Industries accountants prepared the following Aging of Accounts Receivable:
Customer
Total
Number of days unpaid
0-30
30-60
60-90
Over 90
Alpha Sales
$ 700
$ 700
Gamma Manufacturing Co.
1,900
$ 1,900
Delta Shipping Corp.
2,200
$2,200
Epsilon Industries
6,000
$6,000
Theta Manufacturing
1,800
1,800
Zeta Industries
600
600
Other customers
136,800
88,100
26,900
9,800
12,000
Totals
$150,000
$90,000
$30,000
$12,000
$18,000
Vandolay accountants believe that receivables 0-30 days old have a 2% chance of noncollection. Receivables 30-60 days old have a 4% chance of noncollection. Receivables 60-90 days old have an 8%
ACCOUNTS RECEIVABLE JOURNAL ENTRIES
Prepare journal entries to record the following transactions:
(1) On December 15, 2008, the company recorded $150,000 sales on credit.
(2) On December 31, 2008, the company estimated bad debt expenses of $15,000.
(3) On January 12, 2009, collect $100,000 worth of accounts receivable.
(4) After many collection attempts, the Company determined on June 15, 2009 that it would not collect $10,000 in accounts receivables from Pendant Publishing. It decided to write-off this account.
(5) On July 15, Pendant Publishing called to say that they have had financial problems but can afford to pay $7,000 to settle their $10,000 debt in full. Vandolay Industries agreed to these terms, and reversed $7,000 of the prior write-off. It received a $7,000 check from Pendant the next day.
Post the above entries to the following T-accounts:
Accounts Receivable
Allowance for Doubtful Accounts
HW 8 – 2
ESTIMATION AND RECORDING OF UNCOLLECTIBLE ACCOUNTS –
AGING OF ACCOUNTS RECEIVABLE METHOD
Part 1 – In 2009, Vandolay reported $300,000 in sales. The company’s allowance for doubtful accounts has an unadjusted credit balance of $12,000. Vandolay Industries accountants prepared the following Aging of Accounts Receivable:
Customer
Total
Number of days unpaid
0-30
30-60
60-90
Over 90
Alpha Sales
$ 700
$ 700
Gamma Manufacturing Co.
1,900
$ 1,900
Delta Shipping Corp.
2,200
$2,200
Epsilon Industries
6,000
$6,000
Theta Manufacturing
1,800
1,800
Zeta Industries
600
600
Other customers
136,800
88,100
26,900
9,800
12,000
Totals
$150,000
$90,000
$30,000
$12,000
$18,000
Vandolay accountants believe that receivables 0-30 days old have a 2% chance of noncollection. Receivables 30-60 days old have a 4% chance of noncollection. Receivables 60-90 days old have an 8%