Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

The company estimates future uncollectible accounts. The company determines $4,000 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger. )

Supplies at the end of January total $800.

Accrued interest revenue on notes receivable for January.

Interest is expected to be received each December 31.

Unpaid salaries at the end of January are $34,600

Sagot :

Parrain

Based on the various account balances, the relevant journal entries will be:

Date              Account Title                                              Debit        Credit

Jan 31            Bad debt expense                                    $830

                    Allowance for Uncollectible Accounts                      $830

Date              Account Title                                       Debit               Credit

Jan 31            Supply expense                                  $2,800

                      Supplies                                                                   $2,800

Date              Account Title                                       Debit               Credit

Jan 31            Interest Receivable                              $75

                    Allowance for Uncollectible                                         $75

Date              Account Title                                       Debit               Credit

Jan 31            Salaries expense                            $34,600

                    Allowance for Uncollectible                                     $34,600

Why are these the journal entries?

Bad debt expense would be:
= Amount determined to be uncollectible + Remaining accounts receivable that is uncollectible
= (4,000 x 20%) + (10,600 x 5%)

= $830

Supply expense:

= Supplies amount - Supplies at end of January

= 3,600 - 800

= $2,800

Interest receivable:

= Note receivable x Interest / Number of months in year

= 15,000 x 6%/12

= $75

Salaries expenses are $34,600.

Find out more on uncollectible accounts at https://brainly.com/question/24871617.

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.