115.Other than accounts receivable and notes receivable, name other receivables that might be included in the general ledger.
116.Discuss the similarities and differences between accounts receivables, notes receivables and other receivables.
117.List at least three things that indicate a receivable may be uncollectible.
118.Discuss the two methods for recording bad-debt expense. What type of company uses each method?
119.Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables.
April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400.
June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.
Oct. 11 Reinstated the account of Jim Dobbs for and received cash in full payment.
120.Stephanie Roe utilizes the direct write-off method of accounting for uncollectible receivables. On September 15th she is notified by the attorneys for Jacob Marley that Jacob Marley is bankrupt and no cash is expected in the liquidation of Jacob Marley. Write off the $675 of accounts receivable due Jacob Marley.
121.Journalize the following transactions using the direct write-off method of accounting for uncollectible receivables:
Feb 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.
May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.
122.The following journal entries would be used in one of the two methods of accounting for uncollectible receivables. Identify each.
(a)
|
Bad Debt Expense |
900 |
|
|
Accounts Receivable-Billings |
900 |
|
(b)
|
Allowance for Doubtful Accounts |
900 |
|
|
Accounts Receivable-Grover |
900 |
|
123.Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case.
|
(a) |
Credit balance of $300 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $8,500. |
|
(b) |
Credit balance of $500 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 2% of credit sales, which totaled $1,000,000 for the year. |
124.Journalize the following transactions using the allowance method of accounting for uncollectible receivables.
April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400.
June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.
Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.
