Accounting Geniuses (Genii) I need help with my homework! - GoFuckYourself.com

B Sandwich · 07-17-2003, 11:15 AM

I dont even know where to start with these, I'm on the chapter about uncollectible accounts. Can anyone help me with these problems?

1. Company X bases its estimate for uncollectible accounts on sales. For december 2002, the company had $20,000 in total sales and $5,000 in credit sales. The company estimates that 1% of credit sales will not be collected. Prepare the journal entry for the estimate.

2. Company X found out that customer A is in bankruptcy and will not be paying his debt to Co. X. A owes $500 to X. Prepare the hournal entry.

3. Surprisingly, Customer A pas the $500 five months later. Prepare the entries to reinstate the account receivable and receive payment on the account.

B Sandwich · 07-17-2003, 11:28 AM

come on, I know at least one of you out there is educated.. stimulate your mind

my answer for number 1 is

uncollectible accounts expense 50
Allowance for doubtful accounts 50

Kanoealoha · 07-17-2003, 11:32 AM

Ask me in a year...I'll know the answer then...

Kanoealoha · 07-17-2003, 11:35 AM

well, if you adjust it wouldn't it mean that it would raise from 1% to 10% would not be collected...

500/5000 (10%) or 550/5000 (11%)

shot in the dark here

and then adjust it back to 1% after they are paid 5 months later

B Sandwich · 07-17-2003, 11:37 AM

I found a good sample problem in the book that takes you step by step, thanks anyone who tried to help

07-17-2003, 11:15 AM	#1
B Sandwich Confirmed User Join Date: Mar 2003 Location: nola Posts: 1,600	Accounting Geniuses (Genii) I need help with my homework! I dont even know where to start with these, I'm on the chapter about uncollectible accounts. Can anyone help me with these problems? 1. Company X bases its estimate for uncollectible accounts on sales. For december 2002, the company had $20,000 in total sales and $5,000 in credit sales. The company estimates that 1% of credit sales will not be collected. Prepare the journal entry for the estimate. 2. Company X found out that customer A is in bankruptcy and will not be paying his debt to Co. X. A owes $500 to X. Prepare the hournal entry. 3. Surprisingly, Customer A pas the $500 five months later. Prepare the entries to reinstate the account receivable and receive payment on the account. __________________ PubicBucks - Trade your pubes for bucks!

07-17-2003, 11:28 AM	#2
B Sandwich Confirmed User Join Date: Mar 2003 Location: nola Posts: 1,600	come on, I know at least one of you out there is educated.. stimulate your mind my answer for number 1 is uncollectible accounts expense 50 Allowance for doubtful accounts 50 __________________ PubicBucks - Trade your pubes for bucks!

07-17-2003, 11:32 AM	#3
Kanoealoha Confirmed User Join Date: Jul 2002 Location: Happy Valley Posts: 1,261	Ask me in a year...I'll know the answer then... __________________ Strong Bad Rocks!

07-17-2003, 11:35 AM	#4
Kanoealoha Confirmed User Join Date: Jul 2002 Location: Happy Valley Posts: 1,261	well, if you adjust it wouldn't it mean that it would raise from 1% to 10% would not be collected... 500/5000 (10%) or 550/5000 (11%) shot in the dark here and then adjust it back to 1% after they are paid 5 months later __________________ Strong Bad Rocks!

07-17-2003, 11:37 AM	#5
B Sandwich Confirmed User Join Date: Mar 2003 Location: nola Posts: 1,600	I found a good sample problem in the book that takes you step by step, thanks anyone who tried to help __________________ PubicBucks - Trade your pubes for bucks!