At december 31. 2017. hawke company reports the following results for its calendar year.

At December 31,2017, Hawke Company reports the following results for its calendar year. rting $1,905,000 Cash sales 5.682,000 Credit sales. In addition, its unadjusted trial balance includes the following items. $1,270,100 debit 16,580 debit Required 1. Prepare the adjusting entry for this company to recognize bad debts under each of the followino i pendent assumptions. a. Bad debts are estimated to be 1.5% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. nse 5 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 3t 2017, balance sheet given the facts in part la 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 3 1 2017, balance sheet given the facts in part Ic. At December 31,2017, Hawke business states here outcomes for its season. rting $1,905,000 money product sales 5.682,000 Credit product sales. Also, its unadjusted test stability includes here products. $1,270,100 debit 16,580 debit involved 1. Ready the modifying entry with this business to identify debt under all the followino i pendent presumptions. a. money owed tend to be calculated to-be 1.5per cent of credit product sales. b. Money owed tend to be calculated to-be 1per cent of complete product sales. c. An aging evaluation quotes that 5per cent of year-end records receivable tend to be uncollectible. nse 5 2. Show exactly how Accounts Receivable and also the Allowance for skeptical records show up on its December 3t 2017, stability sheet because of the details simply los angeles 3. Show exactly how Accounts Receivable and also the Allowance for skeptical records show up on its December 3 1 2017, stability sheet because of the details simply Ic.

1.
a. money owed = 1.5per cent of credit product sales
= 5,682,000 * 1.5per cent
= 85,230
Journal entry

b. money owed = 1per cent of complete product sales
= (1,905,000 + 5,682,000) * 1per cent
= 75,870.
Journal entry

c. Allowance for uncollectible throughout the 12 months
= 5per cent of the year end records receivable
= 1,270,100 * 5per cent
= 63,505
Bad financial obligation cost = Allowance for skeptical accounts(debit) +
Allowance for uncollectible throughout the 12 months
= 16,580 + 63,505
= 80,085
Journal entry

2.
Present possessions

Present debts

3.
Present possessions

Present debts

Bad financial obligation expense 85,230
Allowance for uncollectible 85,230
Bad financial obligation expense 75,870
Allowance for uncollectible 75,870
Bad financial obligation expense 80,085
Allowance for uncollectible 80,085
Accounts receivable 1,270,100
Allowance for uncollectible (85,230 – 16,580) 68,650
Accounts receivable 1,270,100
Allowance for uncollectible 63,505

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