Exercise 05.03 – Medical Waste Services (Pay Early, Take Discount)
Financial Accounting
Spiceland, Thomas, and Herrman
05th Edition and 06th Edition
Record the service on account, and the collection of cash if pay within the 10 days.
Record the service on account, and the collection of cash if pay within the 10 days.
Does NOT pay for service on time, missing the sales discount. Record the service on account, and the collection of cash if they pay late and miss the Discount.
Record the purchase of services, and the payment of cash.
Grants an allowance. Record the credit sale, sales allowance, cash collection, and calculate net sales.
Given the value of services on account, the cash collections, the percent of uncollectible accounts, and the write-offs… record an adjustment for uncollectible accounts, record write-offs, and calculate the balance of the account under two different write-off amounts.
Record adjustment for uncollectible accounts, determine amount bad debt expense, calculate net accounts receivable.
Record adjustment for uncollectible accounts, amount of bad debt expense reported, calculate net accounts receivable.
Estimate the amount, record the adjustment, calculate net accounts receivable.
Estimate the amount, record the adjustment, calculate net accounts receivable.
Given four transactions for the company… record them all using both the allowance and direct write-off method. Then they ask you to calculate the bad debt expense for both years using both methods.