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Bad Debt Expense Write Off - Excel

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									                                                         Student Name:
                                                                 Class:
                                                                          Problem 07-01

            SWATHMORE CLOTHING CORPORATION
                     General Journal

Account                                          Debit        Credit
Requirement 1:
Monthly bad debt expense accrual summary.
Bad Debt Expense
 Allowance for uncollectible accounts

To record year 2009 accounts receivable write-offs.
Allowance for uncollectible accounts
 Accounts receivable


Requirement 2:
Account                                          Debit        Credit
Bad debt expense
 Allowance for uncollectible accounts

                                              Summary
                                                                            Percent       Estimated
                Age Group                                    Amount       Uncollectible   Allowance
                0-60 days                                                     4%
               61-90 days                                                    15%
               91-120 days                                                   25%
              Over 120 days                                                  40%
                  Totals


Allowance for uncollectible accounts analysis:
    Beginning balance
    Add: Monthly bad debt accruals
    Deduct: Write-offs
   Balance before adjustments
   Required allowance
   Required year-end increase in
      allowance

Requirement 3:
Bad debt expense for 2009:

Monthly accruals
Year-end adjustment
  Total


                           SWATHMORE CLOTHING CORPORATION
                                    Balance Sheet

Current Assets:
Accounts Receivable, net of allowance for uncollectible accounts
Given Data P07-01:

         SWATHMORE CLOTHING CORPORATION

Accounts Receivable, 12/31/08                $574,000
Allowance for uncollectibles, 12/31/08        $54,000
Credit sales, year 2009                    $2,620,000
Collections, year 2009                    ($2,483,000)
Write-offs, year 2009                        ($68,000)
Ending A/R balance at 12/31/09               $643,000

A/R aging at 12/31/2009:

                                          Percentage
      Age Group                 Amount    Uncollectible
      0-60 days                $430,000       4%
     61-91 days                 98,000       15%
     91-120 days                60,000       25%
    Over 120 days               55,000       40%
     Total                     $643,000

Bad debt estimate (percentage of                    3%
 credit sales)
                                                            Student Name:
                                                                    Class:
                                                                              Problem 07-04

                 RAINTREE COSMETIC COMPANY
                        General Journal

Account                                             Debit            Credit
Requirement 1:
To record accounts receivable written off during the year 2009:
Allowance for uncollectible accounts
 Accounts receivable

To record collection of account receivable previously written off:
Accounts receivable
 Allowance for uncollectible accounts

Cash
 Accounts receivable


Requirement 2(a):
Account                                             Debit            Credit
Bad debt expense
 Allowance for uncollectible accounts


Requirement 2(b):
Accounts receivable analysis:
 Beginning balance
  Add: Credit sales
  Less: Write-offs
  Less: Cash collections
 Ending balance

Required allowance for uncollectible
accounts

Allowance for uncollectible accounts analysis:
    Beginning balance
    Add: Collection of receivable
         previously written off
    Less: Write-offs
   Balance before adjustments
   Required allowance
   Bad debt expense adjustment


Account                                             Debit            Credit
Bad debt expense
 Allowance for uncollectible accounts
                                                         Student Name:
                                                                 Class:
                                                                          Problem 07-04


Requirement 2(c):
                             RAINTREE COSMETIC COMPANY
                                   Required Allowance

                                              % of Year-end                 Percent     Estimated
               Age Group                       Receivables Amount         Uncollectible Allowance
               0-60 days                           65%                        4%
              61-90 days                           20%                       15%
              91-120 days                          10%                       25%
             Over 120 days                          5%                       40%
                 Totals


Allowance for uncollectible accounts analysis:
    Beginning balance
    Add: Collection of receivable
         previously written off
    Less: Write-offs
   Balance before adjustments
   Required allowance
   Bad debt expense adjustment


Account                                          Debit         Credit
Bad debt expense
 Allowance for uncollectible accounts


Requirement 3:
                                                 RAINTREE COSMETIC COMPANY
                                                 Net Amount of Accounts Receivable

                                                Accounts     Year-end        Net
                                               Receivable    Allowance      Amount
                                        (a)
                                        (b)
                                        (c)
Given Data P07-04:

              RAINTREE COSMETIC COMPANY

Receivables, net of allowance                          $432,000
 for uncollectible accounts, 12/31/08
Allowance for uncollectibles, 12/31/08                   30,000
Credit sales, year 2009                               1,750,000
Cash collections, year 2009                           1,830,000
A/R write-offs, year 2009                                35,000
Cash collected in 2008 from prior year write off.         3,000

A/R aging at 12/31/2009
                                                    % of Year-End
                               Receivables             Percent
      Age Group                 in Group            Uncollectible
      0-60 days                    65%                    4%
     61-91 days                    20%                   15%
     91-120 days                   10%                   25%
    Over 120 days                   5%                   40%

Bad debt estimate (percentage of                             3%
 credit sales)
Estimate of allowance for uncollectible                     10%
 accounts
                                                   Student Name:
                                                           Class:
                                                                    Problem 07-10

                            PROCEEDS RECEIVED

            Note Face     Date of       Interest       Date      Discount     Proceeds
     Note     Value        Note           Rate      Discounted     Rate       Received
      1      $50,000      3/31/2009       8%           6/30/2009   10%
      2        50,000     3/31/2009       8%           9/30/2009   10%
      3        50,000     3/31/2009       8%           9/30/2009   12%
      4        80,000     6/30/2009       6%         10/31/2009    10%
      5        80,000     6/30/2009       6%         10/31/2009    12%
      6        80,000     6/30/2009       6%         11/30/2009    10%

Note 1                  Face amount
                        Interest to maturity
                        Maturity value
                        Discount
                        Cash proceeds

Note 2                  Face amount
                        Interest to maturity
                        Maturity value
                        Discount
                        Cash proceeds

Note 3                  Face amount
                        Interest to maturity
                        Maturity value
                        Discount
                        Cash proceeds

Note 4                  Face amount
                        Interest to maturity
                        Maturity value
                        Discount
                        Cash proceeds

Note 5                  Face amount
                        Interest to maturity
                        Maturity value
                        Discount
                        Cash proceeds

Note 6                  Face amount
                        Interest to maturity
                        Maturity value
                        Discount
                        Cash proceeds
Given P07-10:

                      PROCEEDS RECEIVED

          Note Face    Date of     Interest      Date    Discount
  Note      Value       Note         Rate     Discounted   Rate
   1       $50,000     3/31/2009     8%        6/30/2009   10%
   2        50,000     3/31/2009     8%        9/30/2009   10%
   3        50,000     3/31/2009     8%        9/30/2009   12%
   4        80,000     6/30/2009     6%       10/31/2009   10%
   5        80,000     6/30/2009     6%       10/31/2009   12%
   6        80,000     6/30/2009     6%       11/30/2009   10%
                                                     Student Name:
                                                             Class:
                                                                      Problem 07-13

Requirement 1:
                             EL GATO PAINTING COMPANY
                                    Reconciliation

Step 1: Bank Balance to Corrected Balance

Balance per bank statement
Add: Deposits outstanding (1)
Deduct:
 Bank error - deposit incorrectly credited
   to company account
 Outstanding checks (2)
Corrected cash balance

Step 2: Book Balance to Corrected Balance

Balance per books
Deduct:
 Error in recording check #411.
 Service charges
 NSF checks
Corrected book balance

(1) Receipts
Less: December receipts deposited:
 Bank deposits
 Less: Deposit errors
 Less: Prior months
   deposits outstanding
Deposits outstanding, December 31

(2) December disbursements
 Error in recording check #411.
 Less: December checks processed:
 Total checks cleared
 Prior months checks:
   #363
   #380
   #381
   #382
   December checks outstanding
    Add: check #365
   Total checks oustanding, December 31


Requirement 2:
To record credits to cash revealed by the bank reconciliation
Advertising expense
Miscellaneous expense (bank service charges)
Accounts receivable (NSF checks)
 Cash
Given Data P07-13:

                EL GATO PAINTING COMPANY

Balance per bank, November 30                   $3,231
Add: Deposits outstanding                        1,200
Less: Checks outstanding
#363                                     $123
#365                                      201
#380                                       56
#381                                       86
#382                                      340     (806)
Adjusted balance per bank, November 30          $3,625

General ledger account:
Balance, December 1                              $3,625
Receipts                                         42,650
Disbursements                                   (41,853)
Balance, December 31                             $4,422

December bank statement:
Balance, December 1                              $3,231
 Deposits                                        43,000
 Checks processed                               (41,918)
 Service charges                                    (22)
 NSF checks                                        (440)
Balance, December 31                             $3,851

Additional information:
 Check #411:
  Correct amount                                  $320
  Amount recorded in books                         230
 Deposit not recorded in books                   1,300

								
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