Hello I have an assignment for Accounting class, I need someone help me to do it.thank you
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1 Per cent of accounts receivable method for Bad Debts:
On December 31 of the current year. The unadjusted trial balance of a company using
the percent of receivables method to estimate bad debt included the following:
Accounts Receivable, debit balance of 95,250; allowance for Doubtful Accounts, Credit
balance of 94. What amount should be debited to bad Debts Expense, assuming 6% of
outstanding accounts receivable at the end of the current year will be uncollectible.
2 Journal Entries:
a.on June 1, 2017, a retailer sells a lawn mower for 2,500 with a one-year
warranty that covers parts.
Warranty expense is estimated at 5% of sales. Prepare the entry to
record the lawn mower sale.
b. on March 15, 2018 the lawn mower is broght in for repairs covered
under the warranty requiring 100 of parts taken from the Repair Parts
Inventory. Prepare the entry to record the warranty repairs.
c. ABC Company had credit sales of 50,000 during the year. Based on
experience over the last few years, they estimate that 1,200 of its
accounts receivable will be uncollectible. Make the Journal entry required
by GAAP for bad debts at year end.
d. on December 31 st, BTO sells equipment that originally cost 20,000 and
has total accumulated depreciation of 12,000 the cash sales price is 6,500.
Record the sale with a journal entry.
e. on December 1, 2015, a company borrows 5,000 from the bank at 10%
interest for 60 days. Make the adjusting entry needed on December 31,
2015 to record interest expense.
3- peavey Enterprises purchased a depreciable asset 17,000 on April 1,
2015. The asset will be depreciated using the straight-line method over
its 4-year useful life. Assuming the asset’s salvage value is 2,000 how
much depreciation expense will peavey record in 2015 and in 2016? Show
your calculation for full credit.
4. peavey Enterprise purchased a depreciable asset for 22,000 on January
1, 2015. The asset will be depreciated using the double declining balance
method over its 5-year useful life. Assuming the asset’s salvage value is
2,000 how much depreciation expense will peavey record in 2015 and in
2016? Show your calculation for full credit.
5. use the following end-of-year account balance to prepare a Balance
sheet for Keith Educational Services for the year ending on December
31,2016. Include a 3-line heading.
Accounts receivable 7,600
Allowance for Doubtful Accounts 500
Common stock 54,500
Unearned Revenue 14,000
Accounts Payable 6,000
Accumulated Depreciation -vehicles 30,000
Ending Retained Earnings 18,000
Estimated Warranty Liability 2,000
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