Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rogala foods inc. was formed in 2015 with the merg

Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo...

90.2K

Verified Solution

Question

Accounting

Rogala Foods Inc. was formed in 2015 with the merger of Grouch Mayer and Tashamo Corporation. The company reported the following rounded amounts for the year ended January 3, 2016 (all amounts in millions):

Debits Credits
Accounts Receivable $ 1,130
Allowance for Doubtful Accounts $ 33
Sales (assume all on credit) 18,400

Required:

Assume Rogala uses 1/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet.

Assume instead Rogala uses the aging of accounts receivable method and estimates that $81 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at January 3, 2016, for recording Bad Debt Expense.

Prepare the journal entry for unadjusted balance in Rogalas Allowance for Doubtful Accounts at January 3, 2016, was a debit balance of $21.

If one of Rogalas customers declared bankruptcy, what journal entry would be used to write off its $10 balance?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Pro-Sports, a sports equipment manufacturer, has a machine currently in use that was originally purchased two...

Finance
1.2K views

You've borrowed $22,000 on margin to buy shares in Disney, which is now selling at $44...

Economics
1.2K views

Draw a diagram to show the long run equilibrium condtion of the perfectly competitive firm

Physics
1.2K views

An ideal gas is taken through the cycle A B C A 2 V m...

Physics
1.2K views

A 500.-g mass is attached to the end of an ideal, massless spring with constant...

Physics
1.2K views

35 A tennis ball bounces down a flight of stairs striking each step in turn...

Basic Math
1.2K views

Suppose the circle graph shows the percent of people in a certain region with the...

Algebra
1.2K views

Find the logarithm log4 64

Accounting
1.2K views

On August 1, the cash account balance was $34,530. During August, cash payments totaled $118,870...

Accounting
1.2K views

XS Supply Company is developing its annual financial statements at December 31. The statements are...

Accounting
1.2K views

Introduction You are preparing the tax return for a new client Simon Bolivar. He is...

Accounting
1.2K views

Which of the following actions are most likely to directly increase cash as shiewn on...