ACC 556 Week 5 Assignment Help | Strayer University
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ACC 556 Week 5 Assignment Help | Strayer University
Brief Exercise
Brief Exercise 8-03 a-b
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At the end of 2021, Kingbird Co. has accounts receivable of
$691,500 and an allowance for doubtful accounts of $25,740. On January 24,
2022, it is learned that the company’s receivable from Madonna Inc. is not
collectible and therefore management authorizes a write-off of $3,943.
(a)
Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
(b)
What is the cash realizable value of the accounts receivable before the
write-off and after the write-off?
Brief Exercise 8-07
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Consider these transactions: (Credit
account titles are automatically indented when amount is entered. Do not indent
manually.)
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(a) |
Pharoah Company accepted a Visa card in payment of
a $400 lunch bill. The bank charges a 4% fee. What entry
should Pharoah make? |
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(b) |
Shamrock, Inc. sold its accounts receivable of $61,600. What entry
should Shamrock make, given a service charge of 4% on the amount of
receivables sold? |
Problem 8-06A
On January 1, 2022, Sheridan Company had Accounts Receivable of
$57,400 and Allowance for Doubtful Accounts of $3,400. Sheridan Company
prepares financial statements annually. During the year, the following selected
transactions occurred:
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Jan. 5 |
Sold
$4,500 of merchandise to Rian Company, terms n/30. |
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Feb. 2 |
Accepted
a $4,500, 4-month, 10% promissory note from Rian Company for
balance due. |
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12 |
Sold
$10,000 of merchandise to Cato Company and accepted Cato’s
$10,000, 2-month, 9% note for the balance due. |
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26 |
Sold
$5,100 of merchandise to Malcolm Co., terms n/10. |
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Apr. 5 |
Accepted
a $5,100, 3-month, 8% note from Malcolm Co. for balance due. |
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12 |
Collected
Cato Company note in full. |
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June 2 |
Collected
Rian Company note in full. |
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15 |
Sold
$2,000 of merchandise to Gerri Inc. and accepted a
$2,000, 6-month, 11% note for the amount due. |
Journalize the transactions. (Omit cost of goods sold
entries.) (Credit
account titles are automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the problem.)
Brief Exercise 8-02
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Record the following transactions on the books of Crane Co. (Omit cost
of goods sold entries.) (Credit
account titles are automatically indented when amount is entered. Do not indent
manually. Record journal entries in the order presented in the problem.)
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(a) |
On July 1, Crane Co. sold merchandise on account to Stacey Inc. for
$23,380, terms 3/10, n/30. |
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(b) |
On July 8, Stacey Inc. returned merchandise worth $3,380 to Crane
Co. |
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(c) |
On July 11, Stacey Inc. paid for the merchandise. |
Exercise 8-06 a-b
Pharoah Company has accounts receivable of $98,700 at March 31,
2022. Credit terms are 2/10, n/30. At March 31, 2022, there is a
$2,045 credit balance in Allowance for Doubtful Accounts prior to
adjustment. The company uses the percentage-of-receivables basis for estimating
uncollectible accounts. The company’s estimates of bad debts are as shown
below.
Prepare the adjusting entry at March 31, 2022, to record bad debt
expense. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Exercise 8-03
At the beginning of the current period, Larkspur Corp. had balances in
Accounts Receivable of $202,700 and in Allowance for Doubtful Accounts of
$9,200 (credit). During the period, it had net credit sales of
$744,100 and collections of $829,950. It wrote off as uncollectible
accounts receivable of $7,798. However, a $2,979 account previously
written off as uncollectible was recovered before the end of the current
period. Uncollectible accounts are estimated to total $26,820 at the end
of the period. (Omit cost of goods sold entries.)
Exercise 8-07
On December
31, 2021, when its Allowance for Doubtful Accounts had a debit balance of
$1,487, Waterway Industries estimates that 10% of its accounts receivable
balance of $103,800 will become uncollectible and records the necessary
adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Waterway
Industries determined that B. Jared’s account was uncollectible and wrote off
$1,260. On June 12, 2022, Jared paid the amount previously written off.
Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12,
2022. (Credit account
titles are automatically indented when amount is entered.
Brief Exercise 8-01
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Presented below are three receivables transactions.
Indicate whether these receivables are reported as accounts receivable, notes
receivable, or other receivables on a balance sheet.
Exercise 8-04
Assume the following information for Sage Hill Corp.
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Accounts receivable (beginning balance) |
$164,000 |
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Allowance for doubtful accounts (beginning balance) |
11,460 |
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Net credit sales |
932,000 |
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Collections |
916,000 |
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Write-offs of accounts receivable |
6,100 |
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Collections of accounts previously written off |
1,600 |
Uncollectible accounts are expected to be 9% of the ending balance in accounts
receivable.
Brief Exercise 8-05 a-b
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Sheridan Company uses the percentage-of-receivables basis to record bad
debt expense and concludes that 3% of accounts receivable will become uncollectible.
Accounts receivable are $419,000 at the end of the year, and the allowance
for doubtful accounts has a credit balance of $2,968.
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(a) |
Prepare the adjusting journal entry to record bad debt expense for the
year. |
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(b) |
If the allowance for doubtful accounts had a debit balance of $825
instead of a credit balance of $2,968, prepare the adjusting journal entry
for bad debt expense. |
(Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Exercise 8-08
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On March 3, Whispering Winds Corp. sells $736,900 of its
receivables to Western Factors Inc. Western Factors Inc. assesses a service
charge of 5% of the amount of receivables sold.
Prepare the entry on Whispering Winds Corp.’ books to record the sale of the
receivables. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Brief Exercise 8-04
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At the end of 2021, Sheffield Corp. has accounts receivable of
$696,800 and an allowance for doubtful accounts of $23,140.
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1. |
On January 24, 2022, it is learned that the company’s receivable from
Madonna Inc. is not collectible and therefore management authorizes a
write-off of $4,248. |
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2. |
On March 4, 2022, Sheffield Corp. receives payment of $4,248 in full
from Madonna Inc. |
Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Brief Exercise 8-09
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Presented below are data on three promissory notes.
Determine the missing amounts. (Round answers
for Total Interest to 0 decimal places, e.g. 825. Round annual interest rate to
0 decimal places, e.g. 15%. Use 360 days for calculation.)
USA 
India