Week 4

BUS591 – Financial Statement and Analysis

Week 4 Homework Assignment Templates

Instructions: Only enter data in the yellow boxes. The remaining areas are already completed for you.

Save the file as follows: lastnamewk4.docx

Submit to the assignment box before the due date. (Late assignments will receive a late penalty).

Problem 8-2B

(a) Journalize the transactions, including explanations. (Note, enter all accounts in one box. The dates have been included to help with formatting).

Date | | Account Titles and Explanation | | Debit | | Credit |

2012 1 | | Accounts Receivable Sales Revenue | | 3,600,000 | | 3,600,000 |

| | (To record sales) | | | | |

2 | | Sales Return and allowance Accounts Receivable | | 50,000 | | 50,000 |

| | (To record sales return) | | | | |

3 | | Cash Accounts receivable | | 3,100,000 | | 3,100,000 |

| | (To record cash received) | | | | |

4 | | Default allowance write-off Accounts receivable | | 92,000 | | 92,000 |

| | (To record accounts deemed uncollectible) | | | | |

5 | | Accounts Receivable Unexpected accounts receivable | | 28,000 | | 28,000 |

| | (To record recovered debts that were wrote off previously) | | | | |

(b) Post the transactions to the ledger T Accounts

Be sure to post the amounts to the correct side of the T-Account!

Accounts Receivable |

Bal.960,000   | (2)50,000 |

(1)3,600,000 | (3)3,100,000 |

(5)28,000 | (4)92,000 |

| (5)28,000 |

Bal. 1,318,000 | |

Allowance for Doubtful Accounts |

(4)92,000 | Bal. 78,000 |

14,000 | (5) 28,000 |

| Bal.0 |

(c) Enter the amounts to the right of the dollar signs. Don’t forget to complete the journal entry to record the bad debt expense.

Balance needed $109,000

Balance before adjustment...