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    Wondra Supplies Showed The Following Selected Adjusted Balances at Its

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    Let's Talk With Hassan
    Wondra Supplies provided selected adjusted balances from its December 31, 2013 year-end financial statements and transactions that occurred in 2014, including sales of $1.8 million, sales returns of $31,000, recovery of a $29,000 account, write-offs of accounts totaling $65,500, and collection of accounts receivable of $1.63 million excluding recoveries. The document asks to journalize the transactions and prepare adjusting entries to estimate bad debts.

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    Wondra Supplies Showed The Following Selected Adjusted Balances at Its

    Uploaded by

    Let's Talk With Hassan
    46 views1 page
    Wondra Supplies provided selected adjusted balances from its December 31, 2013 year-end financial statements and transactions that occurred in 2014, including sales of $1.8 million, sales returns of $31,000, recovery of a $29,000 account, write-offs of accounts totaling $65,500, and collection of accounts receivable of $1.63 million excluding recoveries. The document asks to journalize the transactions and prepare adjusting entries to estimate bad debts.

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    Wondra Supplies Showed the Following Selected Adjusted Balances at Its

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    Wondra Supplies provided selected adjusted balances from its December 31, 2013 year-end financial statements and transactions that occurred in 2014, including sales of $1.8 million, sales returns of $31,000, recovery of a $29,000 account, write-offs of accounts totaling $65,500, and collection of accounts receivable of $1.63 million excluding recoveries. The document asks to journalize the transactions and prepare adjusting entries to estimate bad debts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views1 page

    Wondra Supplies Showed The Following Selected Adjusted Balances at Its

    Uploaded by

    Let's Talk With Hassan
    Wondra Supplies provided selected adjusted balances from its December 31, 2013 year-end financial statements and transactions that occurred in 2014, including sales of $1.8 million, sales returns of $31,000, recovery of a $29,000 account, write-offs of accounts totaling $65,500, and collection of accounts receivable of $1.63 million excluding recoveries. The document asks to journalize the transactions and prepare adjusting entries to estimate bad debts.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Wondra Supplies showed the following selected adjusted

    balances at its #4441


    Wondra Supplies showed the following selected adjusted balances at its December 31, 2013,
    year-end:During the year 2014, the following selected transactions occurred:a. Sales totalled $
    1,800,000, of which 85% were credit sales (cost of sales $987,000).b. Sales returns were
    $31,000, all regarding credit sales. The returned merchandise was scrapped.c. An account for
    $29,000 was recovered.d. Several accounts were written off, including one very large account;
    the total was $65,500.e. Collected accounts receivable of $1,630,000 (excluding the recovery in
    (c) above). Sales discounts of $22,000 were taken.Part ARequired1. Journalize transactions (a)
    through (e). You may find it useful to post your entries to T-accounts for Accounts Receivable
    and Allowance for Doubtful Accounts.Part BRequired2. Prepare the December 31, 2014,
    adjusting entry to estimate bad debts, assuming uncollectible accounts are estimated to be 8%
    of net credit sales.3. Show how accounts receivable will appear on the December 31, 2014,
    balance sheet.4. What will bad debt expense be on the income statement for the year ended
    December 31, 2014?Part C(independent of Part B) Required5. Prepare the December 31,
    2014, adjusting entry to estimate bad debts, assuming uncollectible accounts are estimated to
    be 4% of outstanding receivables.6. Show how accounts receivable will appear on the
    December 31, 2014, balance sheet.7. What will bad debt expense be on the income statement
    for the year ended December 31, 2014?View Solution:
    Wondra Supplies showed the following selected adjusted balances at its

    ANSWER
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