Perpetual System

Wk 3 Assignment 1 5-24, 5-26 5-24 Determining handbill balances: % of appraise revenue accommodation method of accounting for unsound accounts The undermentioned data pertains to Lesliess Floor Store sales on account and accounts due: Account Receivable balance, January 1, 2012 $52,500 Allowance for probationary accounts, January, 1, 2012 $4,725 sales on account, 2012 $925,000 Cost of goods sold, 2012 $615,000 Collections of accounts receivable, 2012 $835,000 Required a. Compute the avocation amounts 1. Using the everyow method, the amount of defective accounts expense for 2012 925,000 * 0.5 = bad debt of $4,625 2. bring in achievable cheer of receivables at the end of 2012 $52,000 4,725 = $47,775 b. Explain wherefore the uncollectible accounts expense amount is contrasting from the amount that was release impinge on as uncollectible The amounts are different because when they do the write attain amount it is an estimated amoun t on what they think would probably written off and not get from the customer 5-26 Determination of account balances - % of receivables wages method of accounting for uncollectible accounts During the 1st year of operation, 2012, Martins Appliance recognized $292,000 of service revenue on account. At the end of 2012, the accounts receivable balance was $57,400. Even though this is the stolon in business, the owner believes he will collect all but well-nigh 4% of the ending balance a. What amount of specie was hive away by Martins during 2012? $292,000-$57,400=$234,600 b. Assuming the use of an allowance frame to account for uncollectible accounts, what amount should Martin record as uncollectible accounts expense in 2012? $57,400 * .04 = $2,296 c. What is the net realizable value of receivables at the end of 2012? $57,400 $2,296 = $55,104 d. Show the effects of the above proceedings on the financial statements by recording appropriate amounts in a horizontal statements model. When you reco! rd amounts in the...If you want to hit a full essay, order it on our website: OrderCustomPaper.com

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