Option #1: The Aging Method: The Smith Company Case mod 6 Accounting

Option #1: The Aging Method: The Smith Company Case

The Smith Company Case. The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions in an Excel spreadsheet for year-end 2014 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $18,000 on January 1, 2014.

Assignment Template

Label the events below as journal entries #1 to #4, along with the dates of the entries:

  1. February 20, 2014: Wrote off Jones account: $7,250.
  2. May 20, 2014: Received $4,050 as partial payment on the $8,000 account receivable due from Garcia.
  3. August 10, 2014: Received $7,250 from Jones on the account written off on February 20, 2014.
  4. September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $4,400; Mulaka: $2,210; Quan: $1,375.

December 31, 2014: Smith Company prepared the following aging schedule for it accounts receivables:

  • $160,000 of Accounts Receivable (A/R) are 0-30 days late: 3% probability of not being paid.
  • $40,000 of A/R are 31-60 days late: 10% probability of not being paid.
  • $18,000 of A/R are 61-90 days late: 20% probability of not being paid.
  • $1,500 of A/R are later than 90 days late: 50% probability of not being paid.

Instructions:

Submit the following items in an Excel spreadsheet, labeling each as 1, 2, 3, and 4:

  1. The four journal entries (1 to 4 above) with a one-sentence description for each
  2. The allowance for doubtful accounts T-account
  3. The journal entry to record bad debt expense
  4. The balance sheet presentation of net realizable value, including gross accounts receivables of $219,500

We are ready to write this paper for you from scratch.
Place an order for this assignment or any other paper with us. We guarantee that the paper will be delivered within the specified deadline. We also have a personalized customer support and you will be able to communicate with your writer throughout the order preparation process. Thank you for choosing us.

order-now-blue

Have troubles with paper writing? You’ve found the right paper writing company! We are the leading essay writing services that provides quality papers for a reasonable price. On our website, you can order various assignments. Our work is 100% original. We write your essay from scratch, according to the exact specifications of your assignment. We guarantee it will pass any plagiarism check

Get Your Papers Completed by Expert Writers

Order essays, term papers, research papers, reaction paper, research proposal, capstone project, discussion, projects, case study, speech/presentation, article, article critique, coursework, book report/review, movie review, annotated bibliography, or another assignment without having to worry about its originality – we offer 100% original content written completely from scratch

PLACE YOUR ORDER

Related Posts

© All Right Reserved