Collected the maturity value the stan mart note apr

Requirement 1. Journalize all September entries using the allowance method. Bad Debts Expense was estimated at % of

credit sales. Show all September activity in Accounts Receivable, Allowance for Bad Debts, and Bad Debts Expense (post

credit sales.

Requirement 2. Using the same facts, assume that Bouquet used the direct write-off method to account for uncollectible

receivables. Journalize all September entries using the direct write-off method. Post to Accounts Receivable and Bad Debts

Post to Accounts Receivable and Bad Debts Expense and show their balances at September 30 2018 . (Enter the

Requirement 3. What amount of Bad Debts Expense would Bouquet report on its September income statement under each

of the two methods? Which amount better matches expense with revenue? Give your reason.

methods. (Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate column.)

1: Requirements

T-accounts).

2. Using the same facts, assume that Bouquet used the direct write-off method to account for uncollectible receivables.

4. What amount of net accounts receivable would Bouquet report on its September 30 2018 , balance sheet under each of

the two methods? Which amount is more realistic? Give your reason.

Begin by journalizing the transactions. (Record debits first, then credits. Exclude explanations from journal entries.)

Sales on account, $450,000 . Ignore Cost of Goods Sold.

Recorded bad debts expense based on the aging of accounts receivable

Open T-accounts for Accounts Receivable and Allowance for Bad Debts. Post the transactions to the two accounts.

Accounts Receivable

Allowance for Bad Debts

Requirement 2. Show how Green Terrace Medical Center should report net accounts receivable on its December 31 ,

2018 , balance sheet.

Age of Accounts

sheet.

post to the two T-accounts. (Record debits first, then credits. Exclude explanations from journal entries. Abbreviations used:

Adj. = Adjusting entry, Clos. = Closing entry, W/O = Write-off.)

Dec. 31 : Made the closing entry for bad debts expense.

Start by recording the entry to reinstate Smith account.

Review the journal entries.

Requirement 2. Assume the December 31 2019 , balance of Accounts Receivable is $136,000 . Show how net accounts

receivable would be reported on the balance sheet at that date.

2018

Dec. 31 Estimated that bad debts expense for the year was % of credit sales of $450,000 and recorded that

Mike Venture $1,200 ; and Russell Reeves $400 .

31 Estimated that bad debts expense for the year was % on credit sales of $510,000 and recorded the

accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to

the two T-accounts.

year.)

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Apr. 1: Collected the maturity value of the Stan − Mart note.

receivable.

2018

Jul. 1 Sold merchandise inventory to Stan − Mart , receiving a $41,000 , nine-month, 8% note. Ignore Cost of Goods

schedule shows that $13,800 of accounts receivable will not be collected. Prior to this adjustment, the credit

balance in Allowance for Bad Debts is $11,800 .

account receivable.

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Maturity value

the fiscal year-end.

8: Requirements

1. Determine the maturity date and maturity value of each note.

Journalize all transactions for CC Publishing . Round all amounts to the nearest dollar. (For notes stated in days, use a

31 Made a closing entry for interest revenue.

2019

investments. Round the accounts receivable turnover ratios to two decimals, X.XX.)

Requirement 1c. Compute the d ays' sales in receivables for 2018 and 2017 . (Round to the nearest whole day.)

(Abbreviations used: Cash = Cash including cash equivalents; ST invest. = short-term investments. Round interim

The acid-test ratio improved from 2017 to 2018 . This trend is favorable for the company.

The accounts receivable turnover improved from 2017 to 2018 . This trend is favorable for the company.

Balance sheet—partial

Income statement—partial

a. Acid-test ratio (Round to two decimals.)

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(Abbreviations used: Cash = Cash including cash equivalents; ST invest. = short-term investments. Round interim

calculations to two decimals, X.XX, and the days in receivables to the nearest whole day.)

The accounts receivable turnover deteriorated from 2017 to 2018 . This trend is unfavorable for the company.

The days' sales in receivables deteriorated from 2017 to 2018 . This trend is unfavorable for the company.

Balance sheet—partial

Current Assets:

Income statement—partial

b. Accounts receivable turnover (Round to two decimals.)

c. Days' sales in receivables (Round to the nearest whole day.)

14 (Click the icon to view the aging schedule.)

a. Determine the estimated bad debts expense under the percent-of-sales methods at June 30 2019 . Assume that 4.5 % of

credit sales will not be collected. (Round to the nearest dollar.)

22.5 % of receivables will not be collected. (Round to the nearest dollar.)

over 90 days. (Round intermediary computations and your final answer to the nearest dollar.)

2 and 3 have been opened for you. Post entries from Requirements 2 and 3 to those accounts. Assume a zero beginning

balance for Allowance for Bad Debts.

Balance Sheet (Partial):

Current Assets:

14: Data Table

c. Aging-of-receivables method, assuming % of invoices 1-30 days will not be collected, 20 % of invoices 31-60

days, 40 % of invoices 61-90 days, and 75 % of invoices over 90 days.

balance for Allowance for Bad Debts.