ACC250 Module 6 Template
This problem continues the Draper Consulting situation from Problem 7-42 of Chapter 7. Draper reviewed the receivables list from the January transactions (from Chapter 6). Draper identified on February 15 that a customer was not going to pay his receivable of $200 from December 9. Draper uses the allowance method for receivables, estimating uncollectibles to be 5% of January credit sales.
1. Journalize the entry to record and establish the allowance using the percentage method for January credit sales.
2. Journalize the entry to record the identification of the customerâ€™s bad debt.
This problem continues the Draper Consulting situation from Problem 8-42 of Chapter 8. Refer to Problem 2-62 of Chapter 2. In Chapter 2, we learned that Draper Consulting had purchased a Dell computer, $1,800, and office furniture, $4,200 on December 3 and 4, respectively, and that they were expected to last five years.
1. Calculate the amount of depreciation for each asset for the year ended December 31, 2012, assuming both assets are using straight-line depreciation.
2. Record the entry for the one monthâ€™s depreciation. Date it December 31, 2012.