ACCT- 1A Week 5 Assignment Help | Cabrillo College
- Cabrillo College / ACCT-1A
- 05 Mar 2021
- Price: $8
- Accounting & Economics Assignment Help / Accounting basics
ACCT- 1A Week 5 Assignment Help | Cabrillo College
M6-2
Reporting Net Sales with Sales Discounts, Credit Card Discounts,
and Sales Returns
Total gross sales for
the period include the following:
Credit card sales
(discount 3%) $ 9,400
Sales on account
(2/15, n/60) $12,000
Sales returns related
to sales on account were $650. All returns were made before payment. One-half
of the remaining sales on account were paid within the discount period. The
company treats all discounts and returns as contra-revenues. What amount will
be reported on the income statement as net sales?
M6-3
Recording Bad Debts
Prepare journal
entries for each transaction listed.
|
a. |
During the period, bad debts are
written off in the amount of $14,500. |
|
b. |
At the end of the period, bad debt
expense is estimated to be $16,000. |
E6-8
Recording Bad Debt Expense Estimates and Write-Offs Using the
Percentage of Credit Sales Method
During the current
year, Sun Electronics, Incorporated, recorded credit sales of $5,000,000. Based
on prior experience, it estimates a 2 percent bad debt rate on credit sales.
Required:
Prepare journal
entries for each transaction:
|
a. |
On November 13 of the current year,
an account receivable for $98,000 from a prior year was determined to be
uncollectible and was written off. |
|
b. |
At year-end, the appropriate bad
debt expense adjustment was recorded for the current year. |
E6-11
Computing Bad Debt Expense Using Aging Analysis
Lin’s Dairy uses the
aging approach to estimate bad debt expense. The ending balance of each account
receivable is aged on the basis of three time periods as follows: (1) not yet due,
$22,000; (2) up to 120 days past due, $6,500; and (3) more than 120 days past
due, $2,800. Experience has shown that for each age group, the average loss
rate on the amount of the receivables at year-end due to uncollectibility is
(1) 3 percent, (2) 14 percent, and (3) 34 percent, respectively. At the end of
the current year, the Allowance for Doubtful Accounts balance is $1,200
(credit) before the end-of-period adjusting entry is made.
Required:
What amount should be
recorded as Bad Debt Expense for the current year?
USA 
India