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Accounting 2 Chapter 9 worksheet and exercises
accounting information system
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Accounting II Worksheet chapter 9
Q 1: Flint Distributors has the following transactions related to notes receivable during the last two months of the year. Dec. 1 Loaned $18,000 cash to G. Kingsley on a 1-year, 6% note. 16 Sold goods to D. Jones, receiving a $4,800, 60-day, 7% note. 31 Accrued interest revenue on all notes receivable.
Instructions Journalize the transactions for Flint Distributors.
Q2: On March 9, Fillmore gave Camp Company a 60-day, 9% promissory note for €6,000. Fillmore honors the note on May 9. Record the collection of the note and interest by Camp assuming that no interest has been accrued.
Q3 Prepare journal entries to record the following transactions entered into by Glaser Company: 2016 June 1 Received a $30,000, 8%, 1-year note from Ann Duff as full payment on her account. Nov. 1 Sold merchandise on account to Malone, Inc. for $18,000, terms 2/10, n/30. Nov. 5 Malone, Inc. returned merchandise worth $500. Nov. 9 Received payment in full from Malone, Inc. Dec. 31 Accrued interest on Duff's note. 2017 June 1 Ann Duff honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2017.
Q4:. At December 31 of the current year, a company reported the following: Total sales for the current year: $780,000 includes $160,000 in cash sales Accounts receivable balance at Dec. 31, end of current year: $190, Allowance for Doubtful Accounts balance at January 1, beginning of current year: $8,300. Bad debts written off during the current year: $6,800. Prepare the necessary adjusting entries to record bad debts expense assuming this company's bad debts are estimated to equal 5% of accounts receivable.
Q5: Each December 31, Davis Company ages its accounts receivable to determine the amount of its adjustment for bad debts. At the end of the current year, management estimated that $16,900 of the accounts receivable balances would be uncollectible. The Allowance for Doubtful Accounts account had a debit balance of $3,200 before any year-end adjustment for bad debts. Prepare the adjusting journal entry that Davis
Company should make on December 31, of the current year, to estimate bad debts expense.
Q6: The December 31, 2016 balance sheet of Sauder Company had Accounts Receivable of ₤500,000 and a credit balance in Allowance for Doubtful Accounts of ₤33,000. During 2017, the following transactions occurred: sales on account ₤1,300,000; sales returns and allowances, ₤50,000; collections from customers, ₤1,215,000; accounts written off ₤35,000; previously written off accounts of ₤5, were collected.
Instructions (a) Journalize the 2017 transactions. (b) If the company uses the percentage-of-sales basis to estimate bad debts expense and anticipates 2% of net sales to be uncollectible, what is the adjusting entry at December 31, 2017? (c) If the company uses the percentage-of-receivables basis to estimate bad debts expense and determines that uncollectible accounts are expected to be 4% of accounts receivable, what is the adjusting entry at December 31, 2017? (d) Which basis would produce a higher net income for 2017 and by how much? (
Accounting 2 Chapter 9 worksheet and exercises
Course: accounting information system
University: Princess Sumaya University for Technology
