11.2 At 31 December 20X2 Bunting Co's receivables totalled $400,000 and an allowance for$50,000 had been brought forward from the year ended 31 December 20X1.It was decided to write off debts totalling $38,000. The allowance for receivables was tothe equivalent of 10% of the receivables.What charge for receivables expense should appear in Bunting Co's statement of profit oryear ended 31 December 20X2?$74,200$51,800$28,000$24.200.D.ABCD

Accounts receivable - Accounts receivable is the outstanding invoices a company has or money owed by…

Answered: 11.2 At 31 December 20X2 Bunting Co's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Table 5 On December 31, Grubbs Company has the following account balances Accounts receivable Allowance for doubtful accounts Net credit sales $330,000 $33,000. $37,500 $28,500 $32,500 4,500 credit 1,500,000 Assume again that Grubbs estimates that 10% of accounts receivable will be uncollectible. Under the percentage of receivables method (balance sheet method) the balance in allowance for doubtful accounts after adjustment would be:
Selected data for the Erdin Corporation for the year ended Decmeber 31, 20x5 is provided below: Credit sales Accounts receivable written off Recoveries of previously written of accounts receivable Allowance for doubtful accounts balance, January 1, 20x5 Accounts receivable, December 31, 20x5 Erdin estimates that 0.8% of sales will be uncollectible. Required - $4,500,000 36,500 1,800 33,000 cr. 625,000 Write the journal entries to record the accounts receivable written off, the recoveries and the bad debt expense. Calculate the ending balance in the allowance for doubtful account at December 31, 20x5. Note that the accounts receivable and recoveries have been accounted for in the ending Accounts Receivable balance.
Chapter 5: Receivables and Sales A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 8% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 1,000,000 Accounts receiyable (A/R) 90,000 Allowance for uncollectible accounts ("AUA") 1,800 Credit Bal. Estimated percent uncollectible. 6.0% Create T accounts for A/R, AUA and Bad debt expense to help with the following questions. Accounts Receivable AUA Bad Debt Expense How much of the Accounts Receivable does management not expect to collect? What amount will the company record as bad debt expense for the YR2? What amount will be shown on the 12/31 balance sheet for Net Accounts Receivable? 1 2 3 On January 5, YR3, the company writes off an A/R they determined is uncollectible. After the write off, what is the balance in AUA? The 4 amount of the write-off is: 200 After the write off, what…
Use the following to answer questions 8 – 11 The following information pertains to RC, Inc. for the month of December: Credit sales $900,000 Accounts payable 38,500 Accounts receivable 55,400 Allowance for Uncollectible accounts 400 credit Cash sales 300,000 RC uses the percent of receivables method and estimates it will not collect 5% of accounts receivable. 8. $ Determine the ending balance for the Allowance for Uncollectible Accounts Determine the appropriate amount $ to record for Bad Debt expense 9. _Assuming the Allowance for Uncollectible accounts had a $700 debit balance, determine the amount to record for Bad Debt expense 10. $ 11. $ After recording bad debt expense, the Net Accounts Receivable is:
Why is the answer A in detail please
QUESTION 3 At year-end, Shifty Ltd had a balance of accounts receivable of $90 000 and an allowance for doubtful debts of $4000. It was decided to write off the debt of Wriggler, totalling $2500, as irrecoverable. It was further decided that the allowance for doubtful debts should stand at 5% of accounts receivable What was the journal entry needed to write off the debt of Wriggler as irrecoverable? O A. DR Bad debts expense S2500 CR Accounts receivable $2500 B. DR Bad debts expense S2500 CR Cash S2500 OC. DR Bad debts expense $2500 CR allowance for doubtlul debts S2500 D. DR Allowance for doubuful debts $2500 CR Accounts receivable $2500
20. Record the entry for write-off Choose * Sales returns and allowances * Bad debt expense * Accounts Payable * Allowance for Uncollectible Account * Accumulate depreciation * Accounts Receivable * Cash
75. King Company began the current year with accounts receivable of P1,000,000 and allowance for doubtful accounts of P80,000. During the current year, the following events occurred: 120,000 Accounts written off Cash Sale 500,000 Sales on account 3,000,000 200,000 Doubtful account expense recognized At the end of the current year, the entity showed a balance in accounts receivable of P1,680,000. Under cash basis, what amount should be reported as sales? а. 2,700,000 b. 2,200,000 с. 3,500,000 d. 3,320,000
11. Please answer which is best for
QUESTION 7 The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be $11,500 $10,000 $8.500 $10.750
Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts? $8,500 $8,800 $3,800 $8,200
7

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