Accounting Chapter 9 Homework Allowance For Doubtful Accounts Accounts Receivable

subject Type Homework Help
subject Pages 9
subject Words 1373
subject Textbook Accounting Principles 12th Edition
subject Authors Donald E. Kieso, Jerry J. Weygandt, Paul D. Kimmel
search this document

Unlock document.

This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
page-pf1
CHAPTER 9
SOLUTIONS TO EXERCISES—SET B
EXERCISE 9-1B
March 1 Accounts Receivable—Lorance Company ..... 5,000
Sales Revenue ............................................ 5,000
3 Sales Returns and Allowances ........................ 700
Accounts Receivable—Lorance
Company ................................................. 700
EXERCISE 9-2B
(a) Jan. 6 Accounts Receivable—Hossfeld ..................... 5,500
Sales Revenue ............................................ 5,500
16 Cash ($5,500 – $110) ........................................ 5,390
Sales Discounts (2% X $5,500) ........................ 110
Accounts Receivable—Hossfeld ............... 5,500
page-pf2
EXERCISE 9-3B
(a) Dec. 31 Bad Debt Expense ............................ 2,900
Accounts Receivable—Willie’s .... 2,900
(b) (1) Dec. 31 Bad Debt Expense
[($1,800,000 – $60,000) X 1%] ....... 17,400
Allowance for Doubtful
Accounts ................................ 17,400
(2) Dec. 31 Bad Debt Expense ............................ 13,700
Allowance for Doubtful
Accounts
[($180,000 X 10%) – $4,300] ... 13,700
EXERCISE 9-4B
(a)
Accounts Receivable
Amount
%
Estimated Uncollectible
1–30 days
31–60 days
$62,000
18,000
2.0
5.0
$ 1,240
900
page-pf3
EXERCISE 9-5B
Allowance for Doubtful Accounts ................................... 18,100
Accounts Receivable ................................................ 18,100
Accounts Receivable ....................................................... 2,900
EXERCISE 9-6B
December 31, 2017
Bad Debt Expense (2% X $600,000) ................................ 12,000
Allowance for Doubtful Accounts ........................... 12,000
May 11, 2018
Allowance for Doubtful Accounts ................................... 2,500
Accounts Receivable—Aber .................................... 2,500
EXERCISE 9-7B
(a) Mar. 3 Cash ($770,000 – $23,100) ....................... 746,900
Service Charge Expense
(3% X $770,000) .................................... 23,100
Accounts Receivable ....................... 770,000
page-pf4
EXERCISE 9-8B
(a) Apr. 2 Accounts Receivable—Ruiz ...................... 1,500
Sales Revenue .................................. 1,500
May 3 Cash .......................................................... 600
Accounts Receivable—Ruiz ............. 600
EXERCISE 9-9B
(a) Jan. 15 Accounts Receivable ............................... 15,000
Sales Revenue .................................. 15,000
20 Cash ($8,500 – $255) ................................ 8,245
Service Charge Expense
($8,500 X 3%) ........................................ 255
Sales Revenue .................................. 8,500
page-pf5
EXERCISE 9-10B
(a) 2017
Nov. 1 Notes Receivable ............................................ 20,000
Cash ......................................................... 20,000
Dec. 11 Notes Receivable ............................................ 9,000
Sales Revenue ......................................... 9,000
16 Notes Receivable ............................................ 8,000
Accounts Receivable—DeLong .............. 8,000
(b) 2018
Nov. 1 Cash ................................................................. 22,400
Interest Receivable .................................. 400
Interest Revenue* .................................... 2,000
Notes Receivable..................................... 20,000
*($20,000 X 12% X 10/12)
page-pf6
EXERCISE 9-11B (Continued)
2018
May 1 Cash ................................................................. 66,000
Notes Receivable..................................... 60,000
Interest Receivable .................................. 4,000
Interest Revenue
($60,000 X 10% X 4/12) ........................ 2,000
EXERCISE 9-12B
4/1/17 Notes Receivable ............................................. 30,000
Accounts Receivable—Gates .................. 30,000
7/1/17 Notes Receivable ............................................. 50,000
Cash .......................................................... 50,000
page-pf7
EXERCISE 9-13B
(a) June 1 Notes Receivable ....................................... 38,000
Cash .................................................... 38,000
(b) Dec. 1 Accounts Receivable—
Ice Inc. .................................................... 39,710
Notes Receivable ................................ 38,000
Interest Revenue
($38,000 X 9% X 1/2) ........................ 1,710
EXERCISE 9-14B
(a) Beginning accounts receivable ................................ $ 220,000
Net credit sales .......................................................... 2,000,000
Cash collections ........................................................ (1,820,000)
Accounts written off .................................................. (50,000)
Ending accounts receivable ..................................... $ 350,000
page-pf8
SOLUTIONS TO PROBLEMS—SET C
(a) 1. Accounts Receivable ................................... 2,570,000
Sales Revenue ...................................... 2,570,000
2. Sales Returns and Allowances ................... 40,000
Accounts Receivable ........................... 40,000
3. Cash .............................................................. 2,300,000
(b)
Accounts Receivable
Allowance for Doubtful Accounts
Bal. 1,000,000
(1) 2,570,000
(5) 35,000
(2) 40,000
(3) 2,300,000
(4) 65,000
(5) 35,000
(4) 65,000
Bal. 60,000
(5) 35,000
Bal. 1,165,000
Bal. 30,000
(c) Balance before adjustment [see (b)] .................................... $30,000
Balance needed ..................................................................... 90,000
Adjustment required .............................................................. $60,000
page-pf9
(a) $26,000.
(b) $30,800 ($1,540,000 X 2%).
(c) $22,000 [($520,000 X 5%) – $4,000].
page-pfa
(a) Dec. 31 Bad Debt Expense .................................... 25,790
Allowance for Doubtful Accounts
($35,790 – $10,000) ....................... 25,790
(a) & (b)
Bad Debt Expense
Date
Explanation
Ref.
Debit
Credit
Balance
2017
Dec. 31
Adjusting
25,790
25,790
(b) 2018
(1)
Mar. 1 Allowance for Doubtful Accounts ............ 1,100
Accounts Receivable ......................... 1,100
(2)
May 1 Accounts Receivable ................................ 1,100
Allowance for Doubtful Accounts ....... 1,100
page-pfb
(a) Total estimated bad debts
Number of Days Outstanding
Total
0–30
31–60
61–90
91–120
Over 120
Accounts
receivable
$260,000
$100,000
$60,000
$50,000
$30,000
$20,000
(b) Bad Debt Expense .................................................... 3,750
Allowance for Doubtful Accounts
[$13,750 – $10,000] ........................................ 3,750
(c) Allowance for Doubtful Accounts ........................... 2,000
(e) When an allowance account is used, an adjusting journal entry is made at
page-pfc
(a) (1) Dec. 31 Bad Debt Expense
($17,550 – $1,500) ......................... 16,050
Allowance for Doubtful
Accounts ................................ 16,050
(2) Dec. 31 Bad Debt Expense
($850,000 X 2%) ............................. 17,000
Allowance for Doubtful
Accounts ................................ 17,000
Note: The entry is the same whether the amount of bad debt expense at
the end of 2017 was estimated using the percentage-of-receivables or the
percentage-of-sales method.
(d) Bad Debt Expense ..................................................... 4,500
Accounts Receivable ......................................... 4,500
page-pfd
(a) July 5 Accounts Receivable ................................ 6,200
Sales Revenue ................................... 6,200
14 Cash ($700 – $21) ...................................... 679
Service Charge Expense ($700 X 3%) ...... 21
Sales Revenue ................................... 700
14 Accounts Receivable ................................ 440
Interest Revenue ................................ 440
(b)
Notes Receivable
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
15
Balance
12,000
57,000
45,000
page-pfe
PROBLEM 9-6C (Continued)
Accounts Receivable
Date
Explanation
Ref.
Debit
Credit
Balance
July 5
6,200
6,200
Interest Receivable
Date
Explanation
Ref.
Debit
Credit
Balance
July 1
15
25
31
Balance
Adjusting
100
150
270
420
270
0
100
(c) Current assets
Notes receivable ............................................................... $15,000
page-pff
Jan. 5 Accounts Receivable—Pendergraft
Company ........................................................ 6,300
Sales Revenue ............................................ 6,300
Feb. 2 Notes Receivable ............................................... 6,300
Accounts Receivable—Pendergraft
Company................................................. 6,300
July 5 Accounts Receivable—Groh Co.
($4,000 + $80) ................................................. 4,080
Notes Receivable ....................................... 4,000
Interest Revenue
($4,000 X 8% X 3/12) ............................... 80
15 Notes Receivable ............................................... 7,000
Sales Revenue ........................................... 7,000

Trusted by Thousands of
Students

Here are what students say about us.

Resources
Company
Legal

Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.