{"id":49141,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/accounting-the-aging-method-the-smith-company-case"},"modified":"2017-08-16T12:20:51","modified_gmt":"2017-08-16T12:20:51","slug":"accounting-the-aging-method-the-smith-company-case","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/accounting-the-aging-method-the-smith-company-case\/","title":{"rendered":"Accounting: The Aging Method: The Smith Company Case"},"content":{"rendered":"<p><b>Template Attached<\/b><\/p>\n<p>The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions in an Excel spreadsheet for year-end 2014 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $18,000 on January 1, 2014.<\/p>\n<p>Label the events below as journal entries #1 to #4, along with the dates of the entries:<\/p>\n<ol>\n<li>February 20, 2014: Wrote off Jones account: $7,250.<\/li>\n<li>May 20, 2014: Received $4,050 as partial payment on the $8,000 account receivable due from Garcia.<\/li>\n<li>August 10, 2014: Received $7,250 from Jones on the account written off on February 20, 2014.<\/li>\n<li>September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $4,400; Mulaka: $2,210; Quan: $1,375.<\/li>\n<\/ol>\n<p>December 31, 2014: Smith Company prepared the following aging schedule for it accounts receivables:<\/p>\n<ul>\n<li>$160,000 of Accounts Receivable (A\/R) are 0-30 days late: 3% probability of not being paid.<\/li>\n<li>$40,000 of A\/R are 31-60 days late: 10% probability of not being paid.<\/li>\n<li>$18,000 of A\/R are 61-90 days late: 20% probability of not being paid.<\/li>\n<li>$1,500 of A\/R are later than 90 days late: 50% probability of not being paid.<\/li>\n<\/ul>\n<p>Instructions:<\/p>\n<p>Submit the following items in an Excel spreadsheet, labeling each as 1, 2, 3, and 4:<\/p>\n<ol>\n<li>The four journal entries (1 to 4 above) with a one-sentence description for each<\/li>\n<li>The allowance for doubtful accounts T-account<\/li>\n<li>The journal entry to record bad debt expense<\/li>\n<li>The balance sheet presentation of net realizable value, including gross accounts receivables of $219,500<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Template Attached The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions in an Excel spreadsheet for year-end 2014 using the aging method. Assume that the allowance for doubtful <a href=\"https:\/\/www.benedictsol.com\/blogs\/accounting-the-aging-method-the-smith-company-case\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-49141","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=49141"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/49141\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=49141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=49141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=49141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}