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Vail Company recorded the following transactions during November.

Date			General Journal	Debit		Credit
Nov.	5		Accounts ReceivableSki Shop	4,532
			Sales			4,532
	10		Accounts ReceivableWelcome Enterprises	1,288
			Sales			1,288
	13		Accounts ReceivableZia Natara	755
			Sales			755
	21		Sales Returns and Allowances	195
			Accounts ReceivableZia Natara			195
	30		Accounts ReceivableSki Shop	2,685
			Sales			2,685

1. Prepare a general ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Post these entries to both the general ledger and the accounts receivable ledger.

2. Prepare a schedule of accounts receivable.

Levine Company uses the perpetual inventory system.

Apr.		8		Sold merchandise for $4,300 (that had cost $3,178) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
		12		Sold merchandise for $5,000 (that had cost $3,240) and accepted the customer's Continental Card. Continental charges a 2.5% fee.

Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)

Z-Mart uses the perpetual inventory system and has its own credit card. Z-Mart charges a per-month interest fee for any unpaid balance on its store credit card at each month-end.

Apr.		30		Z-Mart sold merchandise for $2,800 (that had cost $1,550) and accepted the customers Z-Mart store credit card.
May		31		Z-Mart recorded $3 of interest earned from its store credit card as of this month-end.

Prepare journal entries to record the above credit card transactions of Z-Mart.

On January 1, Wei company begins the accounting period with a $39,000 credit balance in Allowance for Doubtful Accounts.

1. On February 1, the company determined that $8,600 in customer accounts was uncollectible; specifically, $1,800 for Oakley Co. and $6,800 for Brookes Co. Prepare the journal entry to write off those two accounts.
2. On June 5, the company unexpectedly received a $1,800 payment on a customer account, Oakley Company, that had previously been written off in part a. Prepare the entries to reinstate the account and record the cash received.

At year-end (December 31), Chan Company estimates its bad debts as 0.90% of its annual credit sales of $789,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $395 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $70,000, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has:

1. (a) a $1,190 credit balance before the adjustment.

2. (b) a $350 debit balance before the adjustment.

Daley Company prepared the following aging of receivables analysis at December 31.

				Days Past Due
	Total			0			1 to 30				31 to 60				61 to 90				Over 90
Accounts receivable	$	620,000		$	406,000			$	100,000			$	46,000			$	28,000			$	40,000
Percent uncollectible					2				3				6				8				11

a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,600 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,100 debit.

a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,000 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,000 debit.

Following is a list of credit customers along with their amounts owed due and the days past due at December 31. Following that list are five classifications of accounts receivable and estimated bad debts percent for each class.

	Days Past Due
	0			1 to 30				31 to 60				61 to 90				Over 90
Percent uncollectible		1	%			3	%			5	%			8	%			12	%

Customer	Accounts Receivable			Days Past Due
BCC Company	$	4,700			16
Lannister Co.		1,700			0
Mike Properties		5,700			110
Ted Reeves		850			73
Jen Steffens		2,700			35

1. Create an aging of accounts receivable schedule of accounts receivable by age similar to the table given above. Calculate the estimated balance for the Allowance for Doubtful Accounts.

2. Assuming an unadjusted credit balance of $170, record the required adjustment to the Allowance for Doubtful Accounts.

At December 31, Folgeys Coffee Company reports the following results for its calendar year.

Cash sales	$	916,000
Credit sales		316,000

Its year-end unadjusted trial balance includes the following items.

Accounts receivable	$	141,000	debit
Allowance for doubtful accounts		6,600	debit

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable.

General Ledger Accounts Receivable Sales End. Bal Erid. Bal Accounts Receivable Subsidiary Ledger Sales Returns and Allowances Ski Shop End.Bal End.Bal Welcome Enterprises Zia Natara End.Bal End.Bal VAIL COMPANY Schedule of Accounts Receivable November 30 Total Journal entry worksheet 1 2 3 4 Sold merchandise for $4,300 and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. Note: Enter debits before credits. Date General Journal Debit Credit Apr 08 Journal entry worksheet Record the cost of good sold $1,550. Note: Enter debits before credits. Date General Journal Debit Credit Apr 30 Journal entry worksheet Z-Mart recorded $3 of interest earned from its store credit card as of this month-end. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Journal entry worksheet On February 1, the company determined that $8,600 in customer accounts was uncollectible; specifically, $1,800 for Oakley Co. and $6,800 for Brookes Co. Prepare the journal entry to write off those two accounts. Note: Enter debits before credits. Date General Journal Debit Credit Feb 01 Journal entry worksheet Reinstated Park's previously written off account. Note: Enter debits before credits. Date General Journal Debit Credit Jun 05 Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,000 credit balance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Journal entry worksheet

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