ACT300 CSU Journalizing Transactions Account Worksheet

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wnvzvrynar123

Business Finance

ACT 300

Colorado State University

ACT

Description

The following was taken from the records of Wesley Branch, Co in the year ending December 31, 20x7. Journalize the following transactions in an Excel spreadsheet for year-end 20x7 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $10,000 on January 1, 20x7. The assignment template is attached below.

Label the transactions below as journal entries #1 to #4, along with the dates of the entries:

  1. February 20, 20x7: Wrote off Johnson account: $300.
  2. May 20, 20x7: Received $360 as partial payment on the $650 account receivable due from Andrews.
  3. August 10, 20x7: Received $300 from Johnson on the account written off on February 20, 20x7.
  4. September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Masterson: $325; Benson: $320; Ishira: $450.

December 31, 20x7: Wesley Branch prepared the following aging schedule for it accounts receivables:

  • $115,000 of Accounts Receivable (A/R) are 0-30 days late: 2.5% probability of being uncollectible.
  • $45,000 of A/R are 31-60 days late: 12% probability of being uncollectible.
  • $17,000 of A/R are 61-90 days late: 25% probability of being uncollectible.
  • $3,500 of A/R are later than 90 days late: 60% probability of being uncollectible.

Instructions:

Using the Excel spreadsheet template provided for this assignment, submit the following items:

  1. The four journal entries (1 to 4 above) with a one-sentence description for each
  2. The T-account for the allowance for doubtful accounts
  3. The journal entry to record bad debt expense
  4. The balance sheet presentation of the net realizable value of accounts receivable

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ACT300 Principles of Accounting I Module 5: Critical Thinking Template Option #2 Company Company- December 31, 201X Instructions: Prepare the journal entries in Question 1. Use these accounts to complete the entries: Cash, Allowance for doubtful accounts, Johnson - Accounts Receiv Andrews - Accounts Receivable, Masterson - Accounts Receivable, Benson - Accounts Receivable, and Ishira - Accounts Receivable. Question 1 Journal# a Date Account Title 20-Feb b 20-May c 10-Aug d 15-Sep Debit Credit Question 2 Dates T-Account for Allowance for Debit Credit Begining balance 20-Feb 10-Aug 15-Sep Bad Debt Expense= Ending Balance Calculations: Aging schedule Days Late Accounts Receivable Uncollection Probability Uncollectible Amount Question 3: Journal entry for bad debt expense Date Account Title 31-Dec Question 4 Balance Sheet Presentaion Gross Accounts Receivables Ending Balance of Allowance for Doubtbul Accounts Net Realizable Balance Debit Credit ccounts, Johnson - Accounts Receivable,
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Explanation & Answer

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ACT300 Principles of Accounting I
Module 5: Critical Thinking Template Option #2

Company Company- December 31, 201X
Instructions: Prepare the journal entries in Question 1. Use these accounts to complete the entries: Cash, Allowance for doubtful accounts, Johnson - Accounts Receiv
Andrews...


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