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Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account. Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).

Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account. Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account.
Transcribed Image Text:Q-154 Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings: a. Not yet due $250,000 b. 1-30 days past due 105,000 c. 31-60 days past due 40,000 d. 61-90 days past due 7,500 e. Over 90 days past due 15,000 Total $417,500 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group a, 1 percent; Group b, 3 percent; Group c, 10 percent; Group d, 20 percent; and Group e, 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $5,900. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $4,300 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry required on January 10 to write off this account.
Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).
Transcribed Image Text:Question:49 In 2027, Jung Company's first year of operations, the following transactions occurred: (a) Inventory costing $350,000 was sold on credit to customers for a total of $500,000. Jung uses a perpetual inventory system. (b) During the year, Jung wrote off specific customer accounts totalling $4,000. (c) Cash was received from customers as payment on account, $280,000. (d) Jung estimated that 3% of ending accounts receivable would become uncollectible. Required: Prepare journal entries to record the above transactions. Date all entries at December 31, 2027. Show supporting calculations for entry (d).
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