(Get Answer) - oblem x McGraw-Hill Connect Slides...| Transtutors (2024)

Questions
Accounting
Accounting - Others
oblem x McGraw-Hill Connect Slides...

30+ Users Viewed
6+ Downloaded Solutions
Indiana, US Mostly Asked From

oblem x McGraw-Hill Connect Slides chrome-extension://bpmcpldpdmajfigpchkicefoigmkfalc/views/app.html Calibri 12 . B U A A Problem 1 The following account balances come from the records of Stone Company Accounts Receivable Allowance for Doubtful Accounts Beginning Balance $4,000 $150 Ending Balance $4,500 $250 During the accounting period, Stone recorded 521.000 of service revenue on account. The company also wrote off a $180 account receivable. Required: 1. Determine the amount of cash collected from receivables. 2. Determine the amount of bad debt expense recognized during the period. Problem 2 Classic Auto Parts sells new and used auto parts. Although a majority of its sales is cash sales, it makes a significant amount of credit sales. During Year 1. its first year of operations, Classic Auto Parts experienced the following Sales on account Cash sales Collections of accounts receivable Uncollectible accounts written-off during the year $320.000 $680.000 $295,000 $1.400 Required: 1. Assume that Classic Auto Parts uses the allowance method of accounting for bad debt amounts and estimates that 1% of its sales on account will not be collected. Answer the following questions What is the Accounts Receivable balance at December 31. Year 1? b. What is the amount of bad debt expense for Year 1? c. What is the ending balance for Allowance for Doubtful Accounts at December 31. Year 1, after all entries and adjusting entries are posted? d. What is the net realizable value of accounts receivable at December 31 Year 17 2. Assume that Classic Auto Parts uses the direct write-off method of accounting for bad debt amounts. Answer the following questions: a. What is the Accounts Receivable balance at December 31, Year 17 b. What is the amount of bad debt expense for Year 17 c. What is the net realizable value of accounts receivable at December 31, Year 17 ems docx es chrome.extension://bpmcpldpdmajfigpchkicefoigmkfalc/views/app.html Calibri 12. BY U A. A. Problem 1 The following account balances come from the records of Stone Company Accounts Receivable Allowance for Doubtful Accounts Beginning Balance $4,000 $150 Ending Balance $4,500 $250 During the accounting period, Stone recorded 521.000 of service revenue on account. The company also wrote off a $180 account receivable. Required: 1. Determine the amount of cash collected from receivables. 2. Determine the amount of bad debt expense recognized during the period. Problem 2 Classic Auto Parts sells new and used auto parts. Although a majority of its sales is cash sales, it makes a significant amount of credit sales. During Year 1. its first year of operations, Classic Auto Parts experienced the following Sales on account Cash sales Collections of accounts receivable Uncollectible accounts written-off during the year $320,000 $680,000 $295.000 $1.400 Required: 1. Assume that Classic Auto Parts uses the allowance method of accounting for bad debt amounts and estimates that 1% of its sales on account will not be colected. Answer the following questions: a. What is the Accounts Receivable balance at December 31. Year 1? b. What is the amount of bad debt expense for Year 1? c. What is the ending balance for Allowance for Doubtful Accounts at December 31. Year 1, after all entries and adjusting entries are posted? d. What is the net realizable value of accounts receivable at December 31, Year 1? 2. Assume that Classic Auto Parts uses the direct write-off method of accounting for bad debt amounts. Answer the following questions: a. What is the Accounts Receivable balance at December 31, Year 12 b. What is the amount of bad debt expense for Year 1? What is the net realizable value of accounts receivable at December 31. Year 1