on 31 may Roseville floral supply had a $155000 debit balance in accounts receivable and a $6200 credit balance in allowance for doubtful debts during June Roseville made
sales on credit $590000
collection on account $627000
write offs of bad debts $7000
record sales and collection then record bad debt expense 3% of credit sale and write offs of customer account for June using the allowance method show all June activity in accounts receivable allowance for doubtful debts and bad debts expense post to these T account
suppose Roseville used a different method to account for bad debts record sales and collection on account and then record bad debt expenses for June using the direct method post to accounts then record account receivables and bad debt expense and show their balance at 30 June
what amount of bad debt expense would Roseville report on its June income statement under each of the two method ? which amount better matches expense with revenue ?give your reason
what amount of net accounts receivable would Roseville report on its 30 June balance sheet under each of the two methods? which amount is more realistic give your reason
On August 31, 2012, Daisy Floral Supply had a $155,000 debit balance in Accounts receivable and a $6,200 credit balance in Allowance for uncollectible accounts. During September, Daisy made:
Sales on account, $590,000
Collection on account, $627,000
write-offs of uncollectible receivables, $7,000
1. Journalize all September entries using the allowance method. Uncollectible account expense was estimated at 3% of credit sales. Show all September activity in Accounts receivable, Allowance for uncollectible accounts, and Uncollectible account expense (post these to T-Accounts)
2. Using the same facts, assume instead that Daisy used the direct write off method to account for uncollectible receivables. Journalize all September entries using the direct write off method. Post to Accounts receivable and Uncollectible account expense and show their balance at September 30, 2012.
3. What amount of uncollectible account expense would Daisy report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason.
4. What amount of net accounts receivable would Daisy report on its September 30, 2012 balance sheet under each of the two methods? Which amount is more realistic? Give your reason.
Sales on account, $590,000
Collection on account, $627,000
write-offs of uncollectible receivables, $7,000
1. Journalize all September entries using the allowance method. Uncollectible account expense was estimated at 3% of credit sales. Show all September activity in Accounts receivable, Allowance for uncollectible accounts, and Uncollectible account expense (post these to T-Accounts)
2. Using the same facts, assume instead that Daisy used the direct write off method to account for uncollectible receivables. Journalize all September entries using the direct write off method. Post to Accounts receivable and Uncollectible account expense and show their balance at September 30, 2012.
3. What amount of uncollectible account expense would Daisy report on its September income statement under each of the two methods? Which amount better matches expense with revenue? Give your reason.
4. What amount of net accounts receivable would Daisy report on its September 30, 2012 balance sheet under each of the two methods? Which amount is more realistic? Give your reason.
