# Understanding the Adjustment for Bad Debt Expense**Objective:**To calculate, record, post, and analyze the adjustment needed to recognize bad debt expense based on the provided financial data.---## Financial Data### Account Summaries| Account | DR | CR ||--------------------------------|---------|---------|| Accounts Receivable | 365,000 | || Allowance for Doubtful Accounts| | 15,000 || Net Credit Sales | | 827,000 |### Aging of Receivables Analysis| Number of Days Outstanding | Amount Receivable | % Estimated Uncollectible | Total Estimated Uncollectible ||----------------------------|-------------------|---------------------------|-------------------------------|| 0-30 | 175,000 | 1.00% | || 31-60 | 80,000 | 2.00% | || 61-90 | 50,000 | 5.00% | || 91-120 | 42,000 | 20.00% | || Over 120 | 18,000 | 40.00% | || **TOTALS** | **365,000** | | |---## General Ledger Setup- **Accounts Receivable A** - Debit: - Credit: - **Allowance for Doubtful XA** - Debit: - Credit: - **Bad Debt Expense E** - Debit: - Credit: ---## Transaction Analysis**Assets = Liabilities + Equity****Revenues - Expenses = Net Income**---## General Journal Entries| DR | CR ||----|----|| | |---## Key Question**What is the net realizable value of Accounts Receivable?**---This format provides a structured overview for educational purposes, focusing on the understanding and application of adjusting and analyzing bad debt expenses in accounting.

1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts Net credit sales 365,000 15,000 827,000 Total Estimated Uncollectible Amount % Estimated Number of Days Outstanding 0-30 31-60 Receivable Uncollectible 175,000 1.00% 80,000 2.00% 5.00% 20.00% 40.00% 61-90 50,000 91-120 Over 120 TOTALS 42,000 18,000 365,000 age 1 Page 2 Bad Debt Expense E Debit General Ledger Accounts Receivable A Allowance for Doubtful XA Debit Credit Debit Credit Credit

1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts Net credit sales 365,000 15,000 827,000 Total Estimated Uncollectible Amount % Estimated Number of Days Outstanding 0-30 31-60 Receivable Uncollectible 175,000 1.00% 80,000 2.00% 5.00% 20.00% 40.00% 61-90 50,000 91-120 Over 120 TOTALS 42,000 18,000 365,000 age 1 Page 2 Bad Debt Expense E Debit General Ledger Accounts Receivable A Allowance for Doubtful XA Debit Credit Debit Credit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $16700. If the balance of the Allowance for Doubtful Accounts is $2070 credit before adjustment, what is the amount of bad debt expense for that period? $16700 $2070 $14630 $18770
The trial balance before adjustment of Monty Inc. shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) (a) Dr. (b) $106,200 2,065 Cr. Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,955 credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation $802,400 Debit Credit
Please
What is the amount of write offs during Year 2 based on the following financial information? Balance Sheet Excerpts As At Year Year 2 Year 1 End(000s) Gross Accts Receivable Allowance for Doubtful Accounts Net Accts Receivable Provision for Bad Debt O $15 $20 $37 $52 $456 $20 $437 $25 $321 $32 $294 $40
Bad debts accounts are estimated to be doubtful at 5% of the accounts receivable. An extract from the trial balance shows the following balances: Accounts Receivable P200,000 Allowance for Bad Debts, credit 2,000 The net realizable value of accounts receivable after the adjustment for the current reporting period is: Select the correct response: 198,000 190,000 188,000 200,000
Answer all subparts A B C
17.The following information is provided: Unadjusted balance in Allowance for Doubtful Accounts $1,100 (debit)Accounts Receivable, December 31 245,500Sales Returns and Allowances 5,500Sales 850,000Sales Discounts 15,000 Required:1. Prepare the adjusting entry if bad debts are estimated to be 1.5% of net sales.2. Compute the amount of the adjusting entry if bad debts are estimated to be 3% of ending accounts receivable.
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
pap.7
% of Credit Sales Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 1% of credit sales. Required 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts 982,000 25,000 Net credit sales 685,000 Page Allowance for Doubtful XA Debit General Ledger Accounts Receivable A Debit Bad Debt Expense E Credit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME + General Journal DR CR 44 2 What is the net realizable value of Accounts receivable?
Sh14
Qw.8.