Zay27
May 16, 2011, 07:16 AM
This is an Online Accounting course that I am taking. It's a bit difficult because there is no face to face action:
The following transactions were completed by Clark Management company during the current final year ended December 31.
July 5 - Received 70% of the $21,000 balance owed by Dockins Co. a bankrupt business, and wrote off the remainder as the uncollectible.
Sep 21 - Reinstated the account of Bart Tiffany, which had been written off in the preceding year as uncollectible. Journalized the receipt of %4,875 cash in full payment.
Oct. 19 - Wrote off the $6,275 balance owed by Ski Time Co. which has no assets
Nov. 6 Reinstated the account of Kirby Co. which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,750 cash in full payment of the account.
Dec. 31 Wrote off the following accounts as uncollectible (compund entry): Maxie Co. $2150; Kommers Co. $3,600; Helena Distribution, $5,500; Ed Ballantyne, $1,750.
Dec. 31 Based on an analysis of the $815,240 of accounts receivable, it was estimated that $16,750 will be uncollectible. Journalized the adjusting entry.
Intsructions:(This is what I have to do and I am terribly confused :(
1. Record the January 1 credit balance of $12,550 in T-account for Allowance for Doubtful Accounts.
2. Journalize the transactions. Post each entry that affects the following selected T-accounts and determine the new balance:
-Allowance for Doubtful Account
-Bad Debt Expense.
3. Determine the expected net realizable value of the accounts receivable as of December 31.
4. Assuming that instead of basing the provision for uncollectible accounts on analysis of receivables, the adjusting entry on December 31 had been based on estimated expense of 1/4 of 1% of the net sales of $7,126,000 for the year, determine the following:
a. Bad debt expense for the year.
b. Balance in the allowance account after the adjustment of December 31.
c. Expected net realizable value of the accounts receivable as of December 31.
So everything was entered into the general ledger that I have from my school accounting book I just need assistance with the Instructions #'s 1-4a,b,c; Thanks all for your time!!
The following transactions were completed by Clark Management company during the current final year ended December 31.
July 5 - Received 70% of the $21,000 balance owed by Dockins Co. a bankrupt business, and wrote off the remainder as the uncollectible.
Sep 21 - Reinstated the account of Bart Tiffany, which had been written off in the preceding year as uncollectible. Journalized the receipt of %4,875 cash in full payment.
Oct. 19 - Wrote off the $6,275 balance owed by Ski Time Co. which has no assets
Nov. 6 Reinstated the account of Kirby Co. which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,750 cash in full payment of the account.
Dec. 31 Wrote off the following accounts as uncollectible (compund entry): Maxie Co. $2150; Kommers Co. $3,600; Helena Distribution, $5,500; Ed Ballantyne, $1,750.
Dec. 31 Based on an analysis of the $815,240 of accounts receivable, it was estimated that $16,750 will be uncollectible. Journalized the adjusting entry.
Intsructions:(This is what I have to do and I am terribly confused :(
1. Record the January 1 credit balance of $12,550 in T-account for Allowance for Doubtful Accounts.
2. Journalize the transactions. Post each entry that affects the following selected T-accounts and determine the new balance:
-Allowance for Doubtful Account
-Bad Debt Expense.
3. Determine the expected net realizable value of the accounts receivable as of December 31.
4. Assuming that instead of basing the provision for uncollectible accounts on analysis of receivables, the adjusting entry on December 31 had been based on estimated expense of 1/4 of 1% of the net sales of $7,126,000 for the year, determine the following:
a. Bad debt expense for the year.
b. Balance in the allowance account after the adjustment of December 31.
c. Expected net realizable value of the accounts receivable as of December 31.
So everything was entered into the general ledger that I have from my school accounting book I just need assistance with the Instructions #'s 1-4a,b,c; Thanks all for your time!!