ACCOUNTS RECEIVABLE JOURNAL ENTRIES
Prepare journal entries to record the following transactions:
(1) On December 15, 2008, the company recorded $150,000 sales on credit.
(2) On December 31, 2008, the company estimated bad debt expenses of $15,000.
(3) On January 12, 2009, collect $100,000 worth of accounts receivable.
(4) After many collection attempts, the Company determined on June 15, 2009 that it would not collect $10,000 in accounts receivables from Pendant Publishing. It decided to write-off this account.
(5) On July 15, Pendant Publishing called to say that they have had financial problems but can afford to pay $7,000 to settle their $10,000 debt in full. Vandolay Industries agreed to these terms, and reversed $7,000 of the prior write-off. It received a $7,000 check from Pendant the next day.
Post the above entries to the following T-accounts:
Accounts Receivable
Allowance for Doubtful Accounts
HW 8 – 2 ESTIMATION AND RECORDING OF UNCOLLECTIBLE ACCOUNTS – AGING OF ACCOUNTS RECEIVABLE METHOD
Part 1 – In 2009, Vandolay reported $300,000 in sales. The company’s allowance for doubtful accounts has an unadjusted credit balance of $12,000. Vandolay Industries accountants prepared the following Aging of Accounts Receivable:
Customer Total Number of days unpaid
0-30 30-60 60-90 Over 90 Alpha Sales $ 700
The Term Paper on Account Receivable Management
The project deals in “account receivable management at Tata Steel”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management. Debtors occupy an important position in the structure of current ...
$ 700
Gamma Manufacturing Co. 1,900 $ 1,900
Delta Shipping Corp. 2,200
$2,200
Epsilon Industries 6,000
$6,000 Theta Manufacturing 1,800
1,800
Zeta Industries 600
600
Other customers 136,800 88,100 26,900 9,800 12,000 Totals $150,000 $90,000 $30,000 $12,000 $18,000
Vandolay accountants believe that receivables 0-30 days old have a 2% chance of noncollection. Receivables 30-60 days old have a 4% chance of noncollection. Receivables 60-90 days old have an 8% chance of noncollection. Receivables over 90 days old have a 20% chance of noncollection. The company’s allowance for doubtful accounts has an unadjusted credit balance of $12,000. Prepare the required adjusting journal entry.
Bad Debt Expense
Allowance for Doubtful Accounts
HW 8 – 2, CONTINUED
Part 2 – Assume instead that the company’s allowance for doubtful accounts has an unadjusted debit balance of $400. Prepare the required adjusting journal entry.
Bad Debt Expense
Allowance for Doubtful Accounts
HW 8 – 3 ESTIMATION AND RECORDING OF UNCOLLECTIBLE ACCOUNTS – PERCENTAGE OF CREDIT SALES RECEIVABLE METHOD
Part 1 – In 2009, Vandolay reported $300,000 in sales. The company’s allowance for doubtful accounts has an unadjusted credit balance of $12,000. Based on prior experience, management estimates that 2.5% of sales will result in bad debts. Prepare the required adjusting journal entry.
Bad Debt Expense
Allowance for Doubtful Accounts
Part 2 – Assume instead that the company’s allowance for doubtful accounts has an unadjusted debit balance of $400. Prepare the required adjusting journal entry.
Bad Debt Expense
Allowance for Doubtful Accounts
HW 8 – 4 NOTES RECEIVABLE
On April 1, 2008, Vandolay loans a $10,000 note to a customer opening a new store. The note, which bears 10% annual interest, becomes due on March 31, 2009. Prepare the required journal entry.
Note Receivable
Cash
On December 31, 2008, Vandolay accrued interest for the portion of the year that the note was outstanding. Prepare the required adjusting journal entry.
Interest Receivable
Interest Revenue
HW 8 – 4, CONTINUED
On March 31, 2009, Vandolay received all interest and principal for the note. Prepare the required journal entry for the receipt of interest:.
The Review on Market Entry Stratege
The model extends the insights of internalization theory, and draws on concepts from the economics of industrial studies of foreign direct Li investment (FDI)have become much more ambitious in scope over the last 30 years. In the 1960s, the main focus of the Hymer-Kindlebergertheory (Hymer 1976, Kindleberger, 1969) and the prodEImpirical *Peter organization. A special feature of the model is the ...
Interest Receivable Beg. Bal 750
Interest Revenue
[Cash account omitted]
Prepare the required journal entry for the receipt of principal.
Note Receivable Beg. Bal. 10,000
[Cash account omitted]
