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    Depreciation,ratios,doubtful debts, bond redemption

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    https://brainmass.com/business/accounting/225570

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    PROBLEMS

    Problem 1 - Accounts Receivable (10 points)
    Dolan Company uses the allowance method to account for uncollectible accounts. Prepare the appropriate journal entries to record the following transactions during 2006. You may omit journal entry explanations.

    June 20 The account of Ken Unruh for $1,000 was deemed to be uncollectible and is written off as a bad debt.

    Bad debts a/c Dr 1000
    To Ken Unruh 1000

    Profit and loss account Dr 1000
    To bad debts a/c 1000

    Oct. 14 Received a check for $1,000 from Ken Unruh, whose account had previously been written off as uncollectible.

    Account Receivable a/c Dr 1000

    To Bad debts a/c 1000

    (previously written off bad debt now reversed)

    Bank a/c Dr 1000

    To Accounts receivable 1000

    Dec. 31 Use the following information for the year-end adjusting entry:

    The balance of Accounts Receivable and Allowance for Doubtful Accounts at year end are $131,000 and $2,900, respectively. It is estimated that bad debts will be 3% of accounts receivable.
    3% of accounts receivable 131000*3%=3930

    Fresh provision=3930-2900=1030
    Profit and loss ac Dr 1030

    To provision for doubtful debts a/c 1030

    Problem 2 - Bonds Payable (20 points)

    Tipten Company issues $200,000 of 8%, 10-year bonds on January 1, ...

    Solution Summary

    The answer contains two parts 1.There are answers for thirty five multiple choice questions 2. Solutions for five accounting problems viz.,Provision for doudtful debts,depreciation and the disposal of machinery, redemption of bonds,calculation of ratios and pay roll computation

    $2.19