Business, 24.10.2019 18:43 tiamaharaj

Wilcox mills is a manufacturer that makes all sales on 30-day credit terms. annual sales are approximately $30 million. at the end of 2014, accounts receivable were presented in the company's balance sheet as follows: accounts receivable from clients = $3,100,000less: allowance for doubtful accounts = $80,000during 2015, $160,000 of specific accounts receivable were written off as uncollectible. of these accounts written off, receivables totaling $18,000 were subsequently collected. at the end of 2015, an aging of accounts receivable indicated a need for a $222,000 allowance to cover possible failure to collect the accounts currently outstanding. wilcox mills makes adjusting entries for uncollectible accounts only at year-end. instructions1. one entry to summarize all accounts written off against the allowance for doubtful accounts during 2015.2. entries to record the $18,000 in accounts receivable that were subsequently collected.3. the adjusting entry required at december 31, 2015, to increase the allowance for doubtful accounts to $222,000.a. prepare the above general journal entries: (if no entry is required for a transaction/event, select "no journal entry required" in the first account journal entry)transaction 1. record the write-off of receivables throughout the year. transaction 2. record the entry summarizing the reinstatemtn of accounts proving to be collectible. transaction 3. record the collection of accounts reinstated. transaction 4. record the entry to adjust the credit balance of allowance for doubtful accounts.

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Answer from: Kaytlynshue2443

1. One entry to summarize all accounts written off against the

Allowance for Doubtful Accounts during 2015.

Dr Allowance for Uncollectible Accounts$ 160.000

Cr Accounts Receivable $ 160.000

2. Entries to record the $18,000 in accounts receivable that were subsequently collected.

Dr Accounts Receivable $ 18.000

Cr Allowance for Uncollectible Accounts $ 18.000

Dr CASH$ 18.000

Cr Accounts Receivable $ 18.000

3. The adjusting entry required at December 31, 2015, to increase the Allowance for Doubtful Accounts to $222,000.

Dr Bad Debt Expense$ 284.000

Cr Allowance for Uncollectible Accounts $ 284.000

Explanation:

Initial Balance

Dr Accounts Receivable $ 3.100.000

Cr Allowance for Uncollectible Accounts $ 80.000

During 2015, $160,000 of specific accounts receivable were written off as uncollectible

Dr Allowance for Uncollectible Accounts$ 160.000

Cr Accounts Receivable $ 160.000

Of these accounts written off, receivables totaling $18,000 were subsequently collected.

Dr Accounts Receivable $ 18.000

Cr Allowance for Uncollectible Accounts $ 18.000

Of these accounts written off, receivables totaling $18,000 were subsequently collected.

Dr CASH$ 18.000

Cr Accounts Receivable $ 18.000

1. One entry to summarize all accounts written off against the

Allowance for Doubtful Accounts during 2015.

Dr Allowance for Uncollectible Accounts$ 160.000

Cr Accounts Receivable $ 160.000

2. Entries to record the $18,000 in accounts receivable that were subsequently collected.

Dr Accounts Receivable $ 18.000

Cr Allowance for Uncollectible Accounts $ 18.000

Dr CASH$ 18.000

Cr Accounts Receivable $ 18.000

3. The adjusting entry required at December 31, 2015, to increase the Allowance for Doubtful Accounts to $222,000.

Dr Bad Debt Expense$ 284.000

Cr Allowance for Uncollectible Accounts $ 284.000

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of accounts receivables as CREDIT.

Because the company has a debit balance in that account it's necessary to register an entry that compensate the DEBIT value and reflect A CREDIT estimated as % of account receivable.

Final Balance 2015

Dr Accounts Receivable $ 2.940.000

Dr Allowance for Uncollectible Accounts $ 222.000

Bad accounts are those credits granted by the company and there is no possibility of being charged.

"When customers buy products on credits but the company cannot collect the debt, then it's necessary

to cancel the unpaid invoice as uncollectible."

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

Answer from: Quest

answer; by looking at total product,marginal product,and changes in both after changes in inputs

Answer from: Quest

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