Acct201ch9problemspart2 kopyası
.docx
School
Koç University**We aren't endorsed by this school
Course
ACCT 201
Subject
Accounting
Date
Jan 13, 2025
Pages
2
Uploaded by ElderBookIbex23
S9-5 Applying the allowance method to account for uncollectiblesLearning Objective 3The Accounts Receivable balance and Allowance for Bad Debts for Turning Leaves Furniture Restoration at December 31, 2015, was $10,800 and $2,000 (credit balance). During 2016, Turning Leaves completed the following transactions:a.Sales revenue on account, $265,800 (ignore Cost of Goods Sold).b.Collections on account, $220,000.c.Write-offs of uncollectibles, $6,100.d.Bad debts expense of $5,000 was recorded.Requirements1.Journalize Turning Leaves’s transactions for 2016 assuming Turning Leaves uses the allowance method.2.Post the transactions to the Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense T-accounts, and determine the ending balance of each account.3.Show how accounts receivable would be reported on the balance sheet at December 31, 2016.
S9-8 Applying the allowance method (aging-of-receivables) to account for uncollectiblesLearning Objective 3World Class Work Shoes had the following balances at December 31, 2016, before the year-end adjustments:The aging of accounts receivable yields the following data:Requirements1.Journalize World Class’s entry to record bad debts expense for 2016 using the aging-of-receivables method.2.Prepare a T-account to compute the ending balance of Allowance for Bad Debts.Target Balance for Allow.for Bad Debts = 73,000*0.02 + 5,000*0.24 = 2,660Dec 31, 2016Bad Debts Expense1,600Allow. for Bad Debts1,600Allowance for Bad DebtsDebitCredit1,060Beg. Balance1,600Adjustment2,660End. Balance