Accounting Study Notes
Review material
BUS 5502
Ch. 8, 10, 11, 12, 13, 14, 15, 18
Receivables:
1. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of uncollectible accounts expense reported on the income statement? 1/11/2011 | Accounts Receivable | a | $ 900.00 | | | Sales revenue | a | | $ 900.00 | | Uncollectable-Account expense | b | $ 15,000.00 | | | Allowance for uncollectible accounts | b | | $ 15,000.00 | | | | | | | Balance Sheet: | | | | | Accounts Receivable | | $ 900.00 | | | Less Allowance for uncollectible accounts | $ 14, 100.00 | | | | | $ 15, 000 | |
2. The Allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the amount of uncollectible-account expense reported on the income statement? Date | Account | Post. Ref | Debit | Credit | 1/11/2011 | Accounts Receivable | a | $ 200.00 | | | Sales revenue | a | | $ 200.00 | | Bad Debt Expense (115000 X 2.5%) | b | $ 2,875.00 | | | Allowance for uncollectible accounts | b | | $ 2,875.00 | | | | | | | Balance Sheet: | | | | | Accounts Receivable | | $ 3075.00 | | | Less Allowance for uncollectible accounts | $ 15,000.00 | | | | | $ 17,875.00 | |
3. The allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of allowance for uncollectible accounts reported on the balance sheet? 1/11/2011 | Accounts
BUS 5502
Ch. 8, 10, 11, 12, 13, 14, 15, 18
Receivables:
1. The Allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of uncollectible accounts expense reported on the income statement? 1/11/2011 | Accounts Receivable | a | $ 900.00 | | | Sales revenue | a | | $ 900.00 | | Uncollectable-Account expense | b | $ 15,000.00 | | | Allowance for uncollectible accounts | b | | $ 15,000.00 | | | | | | | Balance Sheet: | | | | | Accounts Receivable | | $ 900.00 | | | Less Allowance for uncollectible accounts | $ 14, 100.00 | | | | | $ 15, 000 | |
2. The Allowance for uncollectible accounts currently has a credit balance of $200. The company's management estimates that 2.5% of net credit sales will be uncollectible. Net credit sales are $115,000. What will be the amount of uncollectible-account expense reported on the income statement? Date | Account | Post. Ref | Debit | Credit | 1/11/2011 | Accounts Receivable | a | $ 200.00 | | | Sales revenue | a | | $ 200.00 | | Bad Debt Expense (115000 X 2.5%) | b | $ 2,875.00 | | | Allowance for uncollectible accounts | b | | $ 2,875.00 | | | | | | | Balance Sheet: | | | | | Accounts Receivable | | $ 3075.00 | | | Less Allowance for uncollectible accounts | $ 15,000.00 | | | | | $ 17,875.00 | |
3. The allowance for uncollectible accounts currently has a credit balance of $900. After analyzing the accounts in the accounts receivable subsidiary ledger, the company's management estimates that uncollectible accounts will be $15,000. What will be the amount of allowance for uncollectible accounts reported on the balance sheet? 1/11/2011 | Accounts