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5-1 Problem Solving

The document contains several examples of journal entries related to accounting for accounts receivable and allowance for doubtful accounts. Specifically, it shows entries for recording credit sales, calculating and recording the allowance for doubtful accounts based on a percentage of credit sales, adjusting the allowance account, writing off uncollectible accounts against the allowance, and calculating and recording doubtful accounts expense. It also includes entries related to cash receipts from customers, sales returns and allowances, and reporting net realizable value of accounts receivable on the balance sheet.

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Rianne Gliocam
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577 views11 pages

5-1 Problem Solving

The document contains several examples of journal entries related to accounting for accounts receivable and allowance for doubtful accounts. Specifically, it shows entries for recording credit sales, calculating and recording the allowance for doubtful accounts based on a percentage of credit sales, adjusting the allowance account, writing off uncollectible accounts against the allowance, and calculating and recording doubtful accounts expense. It also includes entries related to cash receipts from customers, sales returns and allowances, and reporting net realizable value of accounts receivable on the balance sheet.

Uploaded by

Rianne Gliocam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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5-1 https://www.studocu.

com/ph/document/cagayan-state-university/accounting/illustrative-
problem/13067370
1. Credit sales (75% x 5,000,000) 37,500

Doubtful accounts (2% x 3,750,000) 75,000

Doubtful accounts 75,000

Allowance for doubtful accounts 75,000

2. Doubtful accounts(1% x 5,000,000) 75,000

Allowance for doubtful accounts 75,000

3. Required Allowance 80,000

Less: Credit balance of allowance 20,000

Doubtful accounts expense 60,000

Doubtful accounts 60,000

Allowance for doubtful accounts 60,000

4. Required Allowance (10% x 500,000) 50,000

Less: Credit balance of allowance 20,000

Doubtful accounts expense 30,000

Doubtful accounts 30,000

Allowance for doubtful accounts 30,000


5-2 https://www.studocu.com/ph/document/pamantasan-ng-cabuyao/bs-accountancy/intacc-
prob-1-8/14125045
Requirement a

1. Accounts receivable 7,000,000

Sales 7,000,000

2. Cash 2,450,000

Sales discount 50,000

Accounts receivable (2,450,000/98%) 2,500,000

3. Cash 3,900,000

Accounts receivable 3,900,000

4. Allowance for doubtful accounts Accounts receivable 30,000 30,000

5. Accounts receivable 10,000

Allowance for doubtful accounts 10,000

Cash 10,000

Accounts receivable 10,000

6. Sales return 70,000

Accounts receivable 70,000

Requirement b

Doubtful accounts expense 40,000

Allowance for doubtful accounts 40,000

Rate = 40,000/1,000,000 = 4%

Allowance for doubtful accounts -Dec 31 (4% x 60,000


1.5M)

Less: Allowance before adjustment 20,000

Doubtful accounts expense 40,000

Requirement c

Accounts receivable – December 31 1,500,000

Allowance for doubtful accounts (60,000)

Net realizable value 1,440,000


5-3 https://www.scribd.com/document/465029191/Allowance-for-
Doubtful-Accounts-Solutions-pdf#
ACCOUNTING FOR ALLOWANCE FOR DOUBTFUL ACCOUNTS
5-4
5-5 https://www.studocu.com/ph/document/father-saturnino-urios-university/
bachelor-science-in-accounting-technology/far-assignment-format-financial-
accounting-and-reporting/9297039
5-6 https://www.studocu.com/ph/document/father-saturnino-urios-university/bachelor-science-in-
accounting-technology/far-assignment-format-financial-accounting-and-reporting/9297039
5-7 https://www.studocu.com/ph/document/divine-word-college-of-calapan/
accountancy/pdf-djskaosjjcjcjxjaj/14168367
5-8 https://www.scribd.com/document/509974706/local-
media177344470019116095
5-9

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