--%>

Prepare the journal entry to record the acquisition

The Webster Company uses the aging method to estimate the allowance for doubtful accounts. The following schedule of accounts receivable was prepared as at December

31, 20x6:

Age Balance %

uncollectible

0-30 days $674,000 0.5%

31-60 days 186,000 1.2%

61-90 days 65,400 10%

91-120 days 19,500 50%

Over 120 Days 7,800 75%

$952,700

The balance in the allowance for doubtful accounts at the beginning of the year was $31,150 (cr). The following transactions were recorded during the year:

Accounts receivable written off 34,500

Recoveries of accounts receivable written off as

uncollectible in prior periods

2,300

Required –

Calculate the bad debt expense for the year 20x6.

Question 4

On December 31, 20x1, the Juniper Company purchase a group of four assets for a total cost of $850,000. An independent appraiser assesses the fair value of each asset as

follows:

Asset Fair Value

Land $100,000

Building 600,000

Equipment 250,000

Fixtures 150,000

Prepare the journal entry to record the acquisition of the four assets.

   Related Questions in Financial Accounting

  • Q : Prepare the journal entry to record the

    On December 31, 20x1, the Kat Co. purchase a group of four assets for a total cost of $1,000,000. An independent appraiser assesses the fair value of each asset asfollows: Asset Fair Value Land $350,000 Building 600,000 Equipment 200,000 Fixtures 150,000 Prepare the journal entry t

  • Q : Explain production budget Give a short

    Give a short introduction of the term ‘production budget’?

  • Q : Define the term Equipment Define the

    Define the term Equipment in Accountancy? Why they are used?

  • Q : Computing the credit rating List some

    List some of the factors does Standard & Poor’s analyzes in computing the credit rating it assigns a sovereign government?

  • Q : Cause and Solution to international

    Discuss briefly the cause and the solution(s) to international bank crisis including less developed countries.

  • Q : Meaning of Electronic Fund Transfer

    What is the meaning of Electronic Fund Transfer. Briefly describe it.

  • Q : Non-tradable asset Assume there is

    Assume there is non-tradable asset along with the perfect positive correlation with a portfolio T of the tradable assets.  How will non-tradable asset be priced?

  • Q : Investment approach of Lynch Investment

    Investment approach of Lynch: Peter Lynch, the best known mutual fund manager, also adopts the words of Benjamin Graham in the sense that he looks at companies not from the perspective of how the stock prices move

  • Q : Prepare relevant ledger accounts

    Journalize the below transactions, prepare relevant ledger accounts and finally trial balance. . XYZ Pvt Ltd 01.01.2009 Started business

  • Q : Essay-People Dependent on technology

    PEOPLE DEPENDENT ON TECHNOLOGY TOO MUCH: Science has developed tremendously in past few years and with the development of science many technologies have entered this world. Today everything is being done with the h