Explore BrainMass

Explore BrainMass

    Quayle Company Kiley Company AR problems

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Problem #3

    The December 31, 2009 balance sheet of Quayle Company had Accounts Receivable of $500,000 and a credit balance in Allowance for Uncollectible Accounts of $33,000. During 2010, the following transactions occurred: sales on account $1,400,000; sales returns and allowances, $50,000; collections from customers, $1,150,000; accounts written off $35,000; previously written off accounts of $5,000 were collected.

    a. Journalize the 2010 transactions. Please leave a blank line between each journal entry.
    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, 2010?
    c. Using a T account, determine the balance of accounts receivable and the allowance for uncollectible accounts at 12/31/10.
    d. Determine Quayle's net realizable value of accounts receivable at 12/31/10.
    e. Calculate the accounts receivable turnover and days to collect ratios for 2010.

    Problem #4

    Kiley Company had a $700 credit balance in Allowance for Uncollectible Accounts at December 31, 2010, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:
    Estimated Percentage
    Current Accounts $120,000 1%
    1â?"30 days past due 12,000 3%
    31â?"60 days past due 10,000 6%
    61â?"90 days past due 5,000 12%
    Over 90 days past due 8,000 30%
    Total Accounts Receivable $155,000

    Prepare the adjusting entry on December 31, 2010 to recognize bad debts expense.

    © BrainMass Inc. brainmass.com June 4, 2020, 1:35 am ad1c9bdddf

    Solution Summary

    Your tutorial is in Excel attached.