Accounting Assignment – The Allowance Method and Notes Receivable

 

Review the transactions and financial position of Outfitters Supply Co. in the

Excel Template

.

Requirements:

1. Journalize the transactions, omitting explanations.

2

>M

1

1 Assignment

31-Dec

31-Dec

1

ize the transactions, omitting explanations.
The December 31 balance of

Receivable is $139,000 and the balance in the

account is

$1,800.

Journal

Accounts

Credit

2

Allowance

Module 11 Assignment:

Outfitters Supply Co. completed the following transactions during the year.

20-Jan

Sold Inventory to Henry G., $600, on account. Ignore COGS.

1-Jun

Loaned $10,000 cash to Kayaks Inc., receiving a 6 month, 11% note.

30-Jun

Wrote off the Henry G. account as uncollectible after repeated efforts to collect from him.

15-Aug

Received $200 from Henry G., along with a letter stating his intention to pay within 30 days. Reinstated his account in full

7-Sep

Received the balance from Henry G.

1-Dec

Collected the maturity value on the Kayaks Inc. note.

19-Dec

Received a $3000, 60 day, 12% note on account from Tommy R.

31-Dec

Wrote off the following accounts as uncollectible:

Jones $700, Smith $300, Kettle $600

Based on an aging of accounts receivable, estimated uncollectible accounts is $2900

Made an adjusting entry to accrue the interest on the Tommy R. note

Requirements:

Journal

Accounts

Allowance

Credit

Date

Post. Ref

Debit

Post the beginning balance to the allowance for uncollectible accounts T to determine the adjusting entry needed for bad debt expense.