ACC 291T Wk 4 – Practice: Connect Knowledge Check (2021 New)

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ACC 291T Wk 4 - Practice: Connect Knowledge Check (2021 New)
ACC 291T Wk 4 – Practice: Connect Knowledge Check (2021 New)
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ACC 291T Wk 4 – Practice: Connect Knowledge Check (2021 New)

Dexter Company uses the direct write-off method.

March 11 Dexter determines that it cannot collect $9,100 of its accounts receivable from Leer Co.
  29 Leer Co. unexpectedly pays its account in full to Dexter Company. Dexter records its recovery of this bad debt.

Prepare journal entries to record the above transactions.

 

  1. During the year 2019, Sampson Company had net credit sales of $1,950,000. Past experience shows that 1.5 percent of the firm’s net credit sales result in uncollectible accounts.
  2. Equipment purchased by Park Consultancy for $38,220 on January 2, 2019, has an estimated useful life of 10 years and an estimated salvage value of $2,700. What adjustment for depreciation should be recorded on the firm’s worksheet for the year ended December 31, 2019?
  3. On December 31, 2019, Giant Plumbing Supply owed wages of $11,400 to its factory employees, who are paid weekly.
  4. On December 31, 2019, Giant Plumbing Supply owed the employer’s social security (6.2 percent) and Medicare (1.45 percent) taxes on the entire $11,400 of accrued wages for its factory employees.
  5. On December 31, 2019, Giant Plumbing Supply owed federal (0.6 percent) and state (5.4 percent) unemployment taxes on the entire $11,400 of accrued wages for its factory employees.

 

 

Required information

 [The following information applies to the questions displayed below.]

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

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 $5,200 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 $1,700 debit.

 

 

Required information

 [The following information applies to the questions displayed below.]

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

  1. 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 $13,600 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 $2,600 debit.