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Book 1

The document contains journal entries and schedules for two companies, UPAT and LAGUNDI. For UPAT, the journal entries record transactions that increase and decrease accounts receivable, notes receivable, cash, and allowance for bad debts accounts. For LAGUNDI, the schedules show the aging of accounts receivable, calculation of required and existing allowance amounts, and calculation of bad debt expense based on credit sales and bad debt rate. Journal entries are presented to write off bad debts from an account and increase the allowance for bad debts.

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57 views4 pages

Book 1

The document contains journal entries and schedules for two companies, UPAT and LAGUNDI. For UPAT, the journal entries record transactions that increase and decrease accounts receivable, notes receivable, cash, and allowance for bad debts accounts. For LAGUNDI, the schedules show the aging of accounts receivable, calculation of required and existing allowance amounts, and calculation of bad debt expense based on credit sales and bad debt rate. Journal entries are presented to write off bad debts from an account and increase the allowance for bad debts.

Uploaded by

almira garcia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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UPAT COMPANY

Journal Entries

a. Accounts Receivable 2,623,800.00


Sales 2,623,800.00 Jan. 1

b. Cash 2,523,000.00
Accounts Receivable 2,523,000.00

c. Allowance for bad debts 41,400.00


Accounts Receivable 41,400.00

d. Cash 87,000.00
Notes Receivable 87,000.00

e. Notes Receivable 216,000.00


Accounts Receivable 216,000.00

f. NR Discounted 108,000.00 Dec. 31


Notes Receivale 108,000.00

g. Accounts Receivable 6,075.00


Cash 6,075.00

NR Discounted 6,000.00
Notes Receivable 6,000.00

h. Cash 135,225.00
Loss on discounting of NR 375.00
NR discounted 135,000.00
Interest Income 600.00

i. Accounts Receivable 1,500.00


Allowance for bad debts 1,500.00

Cash 1,500.00
Accounts Receivable 1,500.00

j. Sales returns and allowances 6,000.00


Accounts receivable 6,000.00

k. Bad debt Expense 39,357.00


Allowance for bad debts 39,357.00
Accounts Allowance for
Receivable bad debts Notes Receivable NR Discounted
672,000.00 (42,300.00) 179,400.00 (114,000.00)
2,623,800.00
(2,523,000.00)
(41,400.00) 41,400.00
(87,000.00)
(216,000.00) 216,000.00
(108,000.00) 108,000.00
6,075.00
(6,000.00) 6,000.00
(135,000.00)
1,500.00 (1,500.00)
(1,500.00)
(6,000.00)
(39,357.00)
515,475.00 (41,757.00) 194,400.00 (135,000.00)
LAGUNDI COMPANY
Schedules
Age AR Balance Rate Amount
Less than 60 days 780,000.00 0.01 7,800.00
61-90 days 230,000.00 0.05 11,500.00
91-120 days 420,000.00 0.15 63,000.00
Over 120 days 50,000.00 0.40 20,000.00
Required Allowance 102,300.00
Allowance balance (33,000+45,000-20,000) (58,000.00)
Adjustment-
increase in allowance 44,300.00

Credit sales (4,000,000 - 400,000) 3,600,000.00


Less: Sales discounts 250,000.00
Sales returns and allowances 350,000.00 600,000.00
Net sales 3,000,000.00
Bad debt rate 1.50%
Bad debt expense 45,000.00

Journal Entries

a. Bad debt Expense 20,000.00


Accounts Receivable 20,000.00
*To record the write off of accounts receivable from Nolog

a. Bad debt Expense 44,300.00


Allowance for bad debts 44,300.00

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