90.2K

Verified Solution

Link Copied!

Rogala Foods, Inc. sells Oscar Mayer, Jell-O, Tassimo, and many other food brands. The company reported the following rounded amounts as of December 29, 2012 (all amounts in millions):

	Debits		Credits
Accounts Receivable	$	1,180
Allowance for Doubtful Accounts			$	46
Sales (assume all on credit)				18,900
1&2. Prepare the adjusting journal entry required at December 31, 2012, for recording Bad Debt Expense. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Round your answers to the nearest whole number.) (i) Assume Rogala uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year. (ii) Assume instead that Rogala uses the aging of accounts receivable method and estimates that $86 of its Accounts Receivable will be uncollectible.

1. Record the entry for bad debt expenses under the percentage of credit sales method.

2. Record the entry for bad debt expenses under the aging of accounts receivable method.

3.

Assume instead that Rogala uses the aging of accounts receivable method and estimates that $86 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry for recording Bad Debt Expense required at December 31, 2012, assuming the unadjusted balance in Rogala's Allowance for Doubtful Accounts at December 31, 2012 was a debit balance of $26. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

1. Record the adjusting entry for bad debts as of December 31, 2012 using the aging of accounts receivable method.

If one of Rogalas main customers declared bankruptcy in 2013, what journal entry would be used to write off its $10 balance? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

1. Record the write-off in 2013 of a certain customer account which is not collectible due to bankruptcy declared by the customer in 2013 totaling $10.

Answer & Explanation Solved by verified expert

See Answer