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HW Chap 8

This document contains several accounting homework problems related to accounts receivable, allowance for doubtful accounts, and bad debt expense. It includes journal entries to record the write-off of specific accounts receivable, calculate and record estimates of uncollectible accounts, and record the acceptance and collection of notes receivable from customers.

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71 views

HW Chap 8

This document contains several accounting homework problems related to accounts receivable, allowance for doubtful accounts, and bad debt expense. It includes journal entries to record the write-off of specific accounts receivable, calculate and record estimates of uncollectible accounts, and record the acceptance and collection of notes receivable from customers.

Uploaded by

uong huongly
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ACCOUNTING HOMEWORK

Chap 8

BE8-3

(a)

Jan. 24 Allowance for Doubtful Accounts 4,300


Accounts Receivable – Madonna Inc. 4,300
(Write-off of Madonna Inc. account)
(b)

Before After
Write-Off Write-Off
Accounts receivable $700,000 $695,700
Allowance for doubtful accounts 25,000 20,700
Cash realizable value $675,000 $675,000

BE8-5

(a)

Dec. 31 Bad Debt Expense (2% × $400,000) - $2,800 5,200


Allowance for Doubtful Accounts 5,200
(To record estimate of uncollectible accounts)
(b)

Dec. 31 Bad Debt Expense (2% × $400,000) + $900 8,900


Allowance for Doubtful Accounts 8,900
(To record estimate of uncollectible accounts)

E8-4

(a)

Dec. 31 Bad Debt Expense 900


Accounts Receivable – Matisse 900
(Write-off of Matisse account)
(b)

Dec. 31 Bad Debt Expense (10% × $78,000) - $1,100 6,700


Allowance for Doubtful Accounts 6,700
(To record estimate of uncollectible accounts)
(c)

Dec. 31 Bad Debt Expense (8% × $78,000) + $500 6,740


Allowance for Doubtful Accounts 6,740
(To record estimate of uncollectible accounts)
E8-5

(a)

Estimated Percentage Estimated


Age of Accounts 2017 Balance
Uncollectible Uncollectible
Current $65,000 2% $1,300
1-30 days past due 12,900 5 645
31-90 days past due 10,100 30 3,030
Over 90 days past due 7,400 50 3,700
$95,400 $8,675
(b)

Mar 31
Bad Debt Expense ($8,675 - $2,100) 6,575
.
Allowance for Doubtful Accounts 6,575
(To record estimate of uncollectible accounts)
(c)

Total balance of 2017 is higher than total balance of 2016. But the amount of bad
debt expense in 2017 increases compared to 2016.
P8-6A

GENERAL JOURNAL
Date Account Titles and Explanation Debit Credit
2017 Adjusting Entries
Jan. 5 Accounts Receivable 4,000
Sales Revenue 4,000
(Sold merchandise to Rian Company, term
n/30)
Feb. 2 Notes Receivable 4,000
Accounts Receivable 4,000
(To record acceptance of Rian Company
note)
12 Notes Receivable 12,000
Sales Revenue 12,000
(Sold merchandise to Cato Company and
accepted note)
26 Accounts Receivable 5,200
Sales Revenue 5,200
(Sold merchandise to Malcolm Co., term
n/10)
Apr. 5 Notes Receivable 5,200
Accounts Receivable 5,200
(To record acceptance of Malcolm Co. note)
12 Cash 12,200
Notes Receivable 12,000
Interest Revenue 200
(To record collection of Cato Company note
and interest)
June 2 Cash 4,120
Notes Receivable 4,000
Interest Revenue 120
(To record collection of Rian Company note
and interest)
15 Notes Receivable 2,000
Sales Revenue 2,000
(Sold merchandise to Gerri Inc. and accepted
note)

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