Need help solving for bad debt expense and accumulated depre

Need help solving for bad debt expense and accumulated depreciation entry #2

Need help with finishing the closing entry for expense accounts

need help finishing current ratio for end of january

On January 1, 2018, the general ledger of ACME Fireworks includes the following account balances Credit Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2019) Common Stock Retained Earnings Debit S 25,100 46,200 $ 4,200 20,000 46,000 15,000 1,500 28,500 50,000 35,000 33,100 Totals $152,300 $152,300 During January 2018, the following transactions occur: January 2. Sold gift cards totaling $8,000. The cards are redeemable for merchandise within one year of the purchase date January 6. Purchase additional inventory on account, $147000 January 15. Firework sales for the first half of the month total $135,000. All of these sales are on account. The cost of the units sold is $73,800. January 23. Receive $125,400 from customers on accounts receivable January 25. Pay $90,000 to inventory suppliers on accounts payable January 28. Write off accounts receivable as uncollectible, $4.800 January 30. Firework sales for the second half of the month total $143,000. Sales include $11,000 for cash and $132,000 on account. The cost of the units sold is $79,500 January 31. Pay cash for monthly salaries, $52.000

Solution

Accounts receivable at end 183000 Allowance for doubtful accounts For 11000 past dues 3300 (11000*30%) For remaining 183000-11000 8600 (172000*5%) Allowance for doubtful accounts at end 11900 Allowance for doubtful accounts at end 11900 Allowance amount at beginning -4200 Accounts written off 4800 Bad debt expense 12500 Bad debt expense 12500             Allowance for doubtful accounts 12500 Closing entry for expenses Income summary 231550              Cost of goods sold 153300               Depreciation expense 500              Bad debt expense 12500              Interest expense 250              Income tax expense 13000              Salaries expense 52000