# Accounting Help nee

P-18-7A    P-16-9a

P 16-9A (1b Dr. Bad Debt Exp. \$6,620)

Uncollectible Accounts Percentage of Sales and Percentage of Receivables. At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang’s Gift Shop was \$30,000 Credit sales for the year were \$355,200.

Required:

Make the necessary adjusting entry in general journal from under each of the following assumptions. Show calculations for the amount of each adjustment and the resulting net realize value.

1. Allowance for Bad Debts has a credit balance of \$330.

a. The percentage of sales method is used and uncollectible accounts are estimated to be 2.0% of credit sales.

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of \$6,950 in uncollectible accounts.

2. Allowance for bad debts has a debit balance of \$400.

a. The percentage of sales method is used and uncollectible accounts are estimated to be 1.5% of credit sales.

b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of \$5,685 in uncollectible accounts.

P 18-7A (Depr exp. For year 8 (a) 7,000.00 (b) 1,968.89 (c) 1,555,56

Straight Line, Declining Balance and Sum of The Years Digits Methods. A machine is purchased January 1 at a cost of \$59,000. It is expected to serve for eight years and have a salvage value of \$3,000.

Required:

Prepare a schedule showing depreciation for each year and the book value at the end of each year using the following methods:

a. Straight line

b. Double declining balance (round to two decimal places)

c. Sum of the years digits (round to two decimal places)

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16-9A

pts.

pense

x

1, 20–

\$ 1,745

872

GENERAL JOURNAL

Date Account Debit Credit
20–

Dec.

-Jul

1,300

Calculations:

Accounts receivable, December 31, 20–

Allowance for bad debts, new balance

Net realizable value

GENERAL JOURNAL

Date Account Debit Credit
20–

Dec. Accounts Receivable 1,745

1,745

Calculations:
Credit Sales x Percentage

\$ 1,745 5.0%

Accounts receivable, December 31, 20– \$ 1,745
Allowance for bad debts, new balance 872

Net realizable value

GENERAL JOURNAL

Date Account Debit Credit
20–

Dec.

1,745

Accounts Receivable 1,745

Calculations:
Estimate through analysis (provided)
Allowance for bad debts, previous balance

Accounts receivable, December 31, 20–
Allowance for bad debts, new balance
Net realizable value
 Problem Name: 1 0 1a. GENERAL JOURNAL Date Account Debit Credit 20– Dec. 8 May Bad Debt E x 1, 7 4 5 Allowance for Bad Debts 1,745 Calculations: Credit Sales Percentage = Adjustment Amount \$ 1,745 5.0% \$ 872 Accounts receivable, December 3 Allowance for bad debts, new balance Net realizable value \$873 1b. 15 Bad Debt Expense 1,300 Accounts Receivable Estimate through analysis (provided) Allowance for bad debts, previous balance Adjustment amount \$ 1,300 130 \$ 1,170 2a. Uncollectible Accounts Recovered = \$ 872 \$ 873 2b. Cash

## E18-2A

Name:

ly

Estimated Life Percentage

/ years =

x 2

x

= Depreciation

Year 1
Year 3

x

8 9

Original Cost – Salvage Value =

Mark Sears: Enter as a formula

Rate = Depreciation

Year 1 \$ 27,000

Mark Sears: Enter as a formula

Year 3

25%
Mark Sears: Enter as a fraction

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

 Exercise 18-2A 10pts. 1. Straight-Line Method Original Cost Salvage Value Estimated Life Year Depreciation years Year 1 Year 3 2. Double-Declining-Balance Method 100% Mark Sears: Enter as a formula Double-declining rate Book Value Rate Year 2 3. Sum-of-the-Years’-Digits Method [Life (Life + 1)] / 2 = Denominator 25% Mark Sears: Enter as a formula Depreciable Cost \$ 27,000 3,00 \$ 24,000 Mark Sears: Enter as a formula Mark Sears: Enter as a formula Depreciable Cost x 25% Mark Sears: Enter as a fraction 2/25 Mark Sears: Enter as a formula \$ 20,225 5/56

## P18-7A

Name:

1.
Straight-Line Method

Original Cost Salvage Value Estimated Life

years

Year

Book Value

0
1
2
3
4
5
6
7
8

2.
Double-Declining-Balance Method

Estimated Life Percentage

100% / years =

x 2
Double-declining rate

Year Annual Depreciation Book Value

Book Value x Rate = Depreciation

0

1

2

3
4
5
6
7
8

3.
Sum-of-the-Years’-Digits Method

[Life x (Life + 1)] / 2 = Denominator

Original Cost – Salvage Value = Depreciable Cost

Year Annual Depreciation Book Value

Depreciable Cost
x Rate = Depreciation

0

1

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter book values for Years 1-8 as formulas

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula

Mark Sears: Enter as a formula
2

3
4
5
6
7
8

 Problem 18-7A 10pts. Yearly Depreciation Annual Depreciation Mark Sears: Enter book values for Years 1-8 as formulas Mark Sears: Enter as a fraction

## E16-7A

10pts.
GENERAL JOURNAL

Date Account Debit Credit
May 8 Bad Debt Expense 1,745

1,745

1,300

Wrote off uncollectible account

2 Accounts Receivable/V. Lawrence 1,745

Uncollectible Accounts Recovered 1,745
2 Cash 1,745

Accounts Receivable/V. Lawrence 1,745

May 15 Accounts Receivable/D. Utter 1,300
Uncollectible Accounts Recovered 1,300

Reinstated account receivable

15 Cash 1,300

Accounts Receivable/D. Utter 1,300

Collection on account
20-1
Accounts Receivable/V. Lawrence
Wrote off uncollectible account
July
Accounts Receivable/D. Utter
Sept.
Reinstated account receivable
Collection on account
20-2

## Sheet1

E16-7A

10 points

3 points

2 points

E18-2A 10 points

*requirement 1 3 points
*requirement 2 3 points

*requirement 3

10 points

*requirement 1 3 points
*requirement 2 3 points
*requirement 3 4 points

 Week 1 Grading Rubric Point Available Points Earned 10 points P16-9A *requirement 1 3 points *requirement 2 *requirement 3 2 points *requirement 4 4 points E18-7A Total Score