Sensational Aqua Sports Corp. (SAS)

Sensational Aqua Sports Corp. (SAS) is a publicly reportable enterprise with a December 31 year end. Select details regarding SAS’s accounts receivables (ARs) and allowance for doubtful accounts (AFDA) follow:

Closing balance AFDA 12/31/20X3

Don't use plagiarized sources. Get Your Custom Essay on
Sensational Aqua Sports Corp. (SAS)
From as low as $9/Page
Order Essay

$46,750

Net sales 20X4

$12,235,000

Percentage of net sales made on credit terms

90%

Net credit sales in December 20X4

$1,310,000

Monthly estimate of bad debt expense

1% of net credit sales

Bad debts written off in 20X4 during the year

$112,000

20X4 collection of ARs written off in 20X3

$1,895

Summary aged ARs at 12/31/20X4

Specifically identified as being uncollectable

% allowance required

1-30 days

$ 985,900

$ 0

1%

31-60 days

352,500

0

5%

61-90 days

42,400

16,700

10%

>90 days

12,980

7,980

25%

$ 1,393,780

SAS processes a journal entry each month end (including December) to provide for its estimated bad debt expense for the month based on credit sales. At year end, as part of its adjusting entry process, it then uses the aging method to determine the required balance for the AFDA account.

Required:

Prepare journal entries to record the following:

a) Recovery of the AR written off in 20X3.

b) Provision for the estimated bad debt expense in December 20X4 based on credit sales.

c) Year-end adjusting entries to provide for the writeoff of specifically identified accounts and to bring the balance of the AFDA account to the required balance as at December 31, 20X4.

How to place an order?

Take a few steps to place an order on our site:

  • Fill out the form and state the deadline.
  • Calculate the price of your order and pay for it with your credit card.
  • When the order is placed, we select a suitable writer to complete it based on your requirements.
  • Stay in contact with the writer and discuss vital details of research.
  • Download a preview of the research paper. Satisfied with the outcome? Press “Approve.”

Feel secure when using our service

It's important for every customer to feel safe. Thus, at The Homework Writings, we take care of your security.

Financial security You can safely pay for your order using secure payment systems.
Personal security Any personal information about our customers is private. No other person can get access to it.
Academic security To deliver no-plagiarism samples, we use a specially-designed software to check every finished paper.
Web security This website is protected from illegal breaks. We constantly update our privacy management.

Get assistance with placing your order. Clarify any questions about our services. Contact our support team. They are available 24\7.

Still thinking about where to hire experienced authors and how to boost your grades? Place your order on our website and get help with any paper you need. We’ll meet your expectations.

Order now Get a quote