We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

accounting post lecture Paper

HW 8-1 ACCOUNTS RECEIVABLE JOURNAL ENTRIES Prepare Journal entries to record the following transactions: (1) On December 15, 2008, the company recorded $1 50,000 sales on credit. (2) On December 31, 2008, the company estimated bad debt expenses of $15,000. (3) On January 1 2, 2009, collect $100,000 worth of accounts receivable. (4) After many collection attempts, the Company determined on June 1 5, 2009 that it would not collect $10,000 in accounts receivables from Pendant Publishing. It decided to write-off this account. ) 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 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 Gamma Manufacturing Co. $ 1,900 Delta Shipping Corp. 2,200 $2,200 Epsilon Industries 6,000 $6,000 Theta Manufacturing 1 ,800 Zeta Industries 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% chance of noncollection. Receivables over 90 accounts has an unadjusted credit balance of $12,000. Prepare the required adjusting Journal entry. Bad Debt Expense Allowance for Doubtful Accounts Part 2 – Assume instead that the company’s allowance for doubtful accounts has an unadjusted debit balance of $400. Prepare the required adjusting Journal entry.

We will write a custom essay sample on accounting post lecture specifically for you
for only $16.38 $13.9/page

Order now

How to cite this page

Choose cite format:

accounting post lecture. (2017, Jun 28). Retrieved from https://paperap.com/paper-on-accounting-post-lecture-847/

We will write a custom paper sample onaccounting post lecturespecifically for you

for only $16.38 $13.9/page
Order now

Our customer support team is available Monday-Friday 9am-5pm EST. If you contact us after hours, we'll get back to you in 24 hours or less.

By clicking "Send Message", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
No results found for “ image
Try Our service