60.1K

Verified Solution

Link Copied!

Follow the instructions on the page.

a) Percentage of Sales method XYZ Company has the following beginning and ending balances for A/R and the Allowance The company had sales for the year of $900,000, all of which were credit sales. The company estimates 1/2 of 1% of sales will not be collected. During the year Deadbeat Buxton came into your store and paid you the $1,000 he owed you from three years ago, you had previously written off that account. 1) Calculate the amount of Bad Debt Expense for the year and make the journal entry 2) Make the journal entry (or entries) for when Deadbeat Buxton came into store and paid you 3) Calculate the amount of accounts which were written off during the year and make the journal entry for that. 4) Calculate the amount of Cash collected from customers (not counting Deadbeat Buxton) for the year and make the journal entry for that. 5) Calculate the net realizable value of Accounts Receivable for the end of the year b) Aging method The following table represents the aging of accounts receivahle fra wain. The company uses the aging method to estimate the balance for Alowance for Doubtful Accounts and Bad Debt Expense. The company had sales for the year of $2.250,000, all of which were credit sales. During the year Deadbeat Buxton (that guy gets around) came into your store and paid you the $1,500 he owed you from three years ago, you had previously written off that account. During the year, you wrote off $12,200 of accounts receivable. 1) Calculate the ending balance for Alowance for Doubtful Accounts using the aging method 2) Make the joumal entry (or entries) for when Deadbeat Buxton came into store and paid you 3) Make the journal entry for the accounts written off during the year. 4) Calculate the amount of Cash collected from customers (not counting Deadbeat Buxton) for the year and make the journal entry for that. 5) Caiculate the net realizable value of Accounts Receivable for the end of the year

Answer & Explanation Solved by verified expert

See Answer