Module 11 Assignment_Outfitters Supply Co_The Allowance Method and Notes Receivable
Question # 00026131
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Updated on: 09/18/2014 12:00 AM Due on: 12/31/2015
| Module 11 Assignment: | |||||||||
| Outfitters Supply Co. completed the following transactions during the year. | |||||||||
| 20-Jan | Sold Inventory to Henry G., $600, on account. Ignore COGS. | ||||||||
| 01-Jun | Loaned $10,000 cash to Kayaks Inc., receiving a 6 month, 11% note. | ||||||||
| 30-Jun | Wrote off the Henry G. account as uncollectible after repeated efforts to collect from him. | ||||||||
| 15-Aug | Received $200 from Henry G., along with a letter stating his intention to pay within 30 days. Reinstated his account in full | ||||||||
| 07-Sep | Received the balance from Henry G. | ||||||||
| 01-Dec | Collected the maturity value on the Kayaks Inc. note. | ||||||||
| 19-Dec | Received a $3000, 60 day, 12% note on account from Tommy R. | ||||||||
| 31-Dec | Wrote off the following accounts as uncollectible: | ||||||||
| Jones $700, Smith $300, Kettle $600 | |||||||||
| 31-Dec | Based on an aging of accounts receivable, estimated uncollectible accounts is $2900 | ||||||||
| 31-Dec | Made an adjusting entry to accrue the interest on the Tommy R. note | ||||||||
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Solution: Module 11 Assignment_Outfitters Supply Co_The Allowance Method and Notes Receivable