(solution) Accounting homework-estimating bad debt expense and accounts

(solution) Accounting homework-estimating bad debt expense and accounts

Accounting homework-estimating bad debt expense and accounts receivable

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Contact the World Campus Helpdesk s in order for this assignment to function. e Support site for documentation and instructions. us Helpdesk if you continue to have trouble. s. Assignment number five – Accounts receivable and estimating bad debt expe
Rollins' Bicycles has the following information available for the current year:
Beginning balance in accounts recevable:
Beginning balance in allowance for bad debts: $45,772.00
$3,770.00 Total sales for period (cash and credit)
Sales on account for period
Sales for cash during period $286,303.00
$242,342.00
$43,961.00 Cash collected on account during the period
Write-offs of uncollectible receivables for period $119,513.00
$1,803.00 Credit Required – Part 1 (Allowance method – percent of sales):
1. Post the beginning balances to the accounts receivable and allowance for bad debts T-accounts
2. Journalize the transaction to record cash and credit sales for the period. Ignore the entry for cost of merch
3. Journalize the transaction to record cash collections on account for the period (entry 2)
4. Journalize the transaction to record write-offs of bad debts for the period (entry 3)
5. Post transactions 1, 2, and 3 to the accounts receivable and allowance for bad debts T-accounts
6. Journalize the adjusting entry for bad debt expense at the end of the period (entry 4)
We calculate bad debts expense using the allowance method (percent of credit sales)
We estimate bad debts to be:
4.00% of credit sales
7. Post the adjusting entry (entry 4) to the allowance for bad debts T-account Required – Part 2 (Allowance method – percent of receivable):
1. Post the beginning balances to the accounts receivable and allowance for bad debts T-accounts
2. Journalize the transaction to record cash and credit sales for the period. Ignore the entry for cost of merch
3. Journalize the transaction to record cash collections on account for the period (entry 2)
4. Journalize the transaction to record write-offs of bad debts for the period (entry 3)
5. Post transactions 1, 2, and 3 to the Accounts Receivable and Allowance for Bad Debts T-accounts
6. Journalize the adjusting entry for bad debt expense at the end of the period (entry 4)
We calculate bad debts expense using the allowance method (percent of receivables)
We estimate bad debts as:
1.00% of receivables
7. Post the adjusting entry (entry 4) to the allowance for bad debts T-account Use the area below t (*Note: Your instructor may use th and estimating bad debt expense 9 ad debts T-accounts
nore the entry for cost of merchandise sold (entry 1)
iod (entry 2)
entry 3)
bad debts T-accounts
d (entry 4)
f credit sales) ad debts T-accounts
nore the entry for cost of merchandise sold (entry 1)
iod (entry 2)
entry 3)
Bad Debts T-accounts
d (entry 4)
f receivables) General Journal (journa
Part 1
Allowance method – percent
Accounts Date
1 2 3 4 Date
1 General Journal (journa
Part 2
Allowance method – percent of
Accounts 2 3 4 he area below to show your work and calculations. r instructor may use this area to help review and resolve any incorrect answers) General Journal (journal)
Part 1
Allowance method – percent of sales
Accounts
Debit General Journal (journal)
Part 2
Allowance method – percent of receivables
Accounts
Debit ions.
answers) Credit Credit Ledger accounts (T-accounts)
Part 1
Date
Beg Bal Accounts Receivable
Debit Credit Balance Date
Beg Bal Allowance for Bad Debts
Debit Balance Ledger accounts (T-accounts)
Part 2
Date
Beg Bal Balance Accounts Receivable
Debit Credit Date
Beg Bal Balance Allowance for Bad Debts
Debit e for Bad Debts
Credit e for Bad Debts
Credit