Exercise 9-3
The ledger of Costello Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $20,000.
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If Costello uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Costello determines that L. Dole’s $1,400 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
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student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
SHOW LIST OF ACCOUNTS
LINK TO TEXT
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If Allowance for Doubtful Accounts has a credit balance of $2,100 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 1% of net sales, and (2) 10% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
(1)
Dec. 31
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student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
(2)
Dec. 31
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
SHOW LIST OF ACCOUNTS
LINK TO TEXT
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student submitted image, transcription available below
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If Allowance for Doubtful Accounts has a debit balance of $200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be (1) 0.75% of net sales and (2) 6% of accounts receivable.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
(1)
Dec. 31
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
(2)
Dec. 31
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
student submitted image, transcription available below
SHOW LIST OF ACCOUNTS
LINK TO TEXT