2. On January 1, 2017, the balance of accounts receivable of Kate Company was P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The following data were gathered: Credit Sales Writeoffs Recoveries 2014 10,000,000 250,000 20,000 2015 14,000,000 400,000 30,000 2016 16,000,000 650,000 50,000 2017 25,000,000 1,100,000 150,000 Doubtful accounts are provided for as percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. How much should be reported as doubtful accounts expense for 2017? a. 600,000 b. 450,000 c. 950,000 d. 750,000

2. On January 1, 2017, the balance of accounts receivable of Kate Company was P5,000,000 and the allowance for doubtful accounts on the same date was P800,000. The following data were gathered: Credit Sales Writeoffs Recoveries 2014 10,000,000 250,000 20,000 2015 14,000,000 400,000 30,000 2016 16,000,000 650,000 50,000 2017 25,000,000 1,100,000 150,000 Doubtful accounts are provided for as percentage of credit sales. The accountant calculates the percentage annually by using the experience of the three years prior to the current year. How much should be reported as doubtful accounts expense for 2017? a. 600,000 b. 450,000 c. 950,000 d. 750,000

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

The company had the following beginning year balances in 2016. The company had credit sales of $1,000,000 and cash sales of $1,200,000. The company estimates bad debts at 1%. During the year $12,000 of the bad debt was deemed uncollectable. On 12/31/16 the remaining accounts receivable outstanding balance for the company was $295,000. 2016 Beginning Balances: Accounts Receivable: $162,000 Allowance for Doubtful Accounts: $9,000 (credit) Accounts Receivable, net: $153,000 Answer the following questions for the T-account for Accounts Receivable: • Sum up all of the items on the debit side (including any beginning debit balances), what is that total? • Sum up all of the items on the credit side (including any beginning credit balances), what is that total? Answer the following questions for the T-account for Allowance for Bad Debt: • Sum up all of the items on the debit side (including any beginning debit balances), what is that total? • Sum up all of the items on the credit side…
Need help with this Question
answer
Information about KKM Corporation’s Accounts Receivable on year end are the ff: 2015 2014 Accounts receivable, net USD4, 300, 000 USD 3, 500, 000 Allowance for doubtful accounts 1,580,000 770,000 Sales totaled USD45,000,000 for the year, with cash sales accounting for 40% of total sales. Uncollectible account write-offs amounted to USD500,000, while recoveries of previously written-off accounts totaled USD250,000. In 2015, how much was bad debt expense recognized? In 2015, how much money did KKM Corporation collected from their customers? Note* Accounts receivable should be in gross amount not the net amount before determining the answers.
The 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. What are the company’s current gross accounts and other receivables at the end of 2016? (in millions) 2016 2015 Allowance for doubtful accounts $7.2 $9.3 Total accounts and other receivables, net $486.6 $520.2 Group of answer choices $493.8 million $452 million $479.4 million $486.6 million
On 31st August 2021, Rossy Enterprise had a RM155,000 debit balance in Accounts Receivable and a RM6,200 credit balance in Allowance for Doubtful debt. During September 2021, Rossy made the following transactions:Sept 1 : Sales on account, RM590,000.Sept 10: Collection from receivables through online banking, RM627,000.Sept 20: Write-offs of uncollectible receivables, RM7,000.Sept 30: Bad debt was estimated at 3% of the month’s credit sales.Required:1) Journalize all September transactions using the allowance method. Post the entries to Accounts Receivable, Allowance for Doubtful Debt, and Bad Debt Expense. You need to balance off the ledgers and show their balances on 30th September 2021.2) Show the amount of net accounts receivable would Rossy report in its statement of financial position as at 30 September 2021. Is the amount being realistic? Give your reason.
Moose Corporation had a 1/1/15 balance in the Allowance for Doubtful Accounts of P 12,000. During 2015, it wrote of P 8,640 of accounts and collected P 2,520 on accounts previously written off. The balance in Accounts Receivable was P 240,000 at 1/1 and P 288,000 at 12/31. At 12/31/15, Black estimates that 5% of accounts receivable will prove to be uncollectible. What should Moose Corporation report as its Allowance for Doubtful Accounts at 12/31/15?
I'm studying for a test and I want to know how to do each question for it, can you walk me through step by step how to solve this one? The following data concern XYZ Corporation for 2018:Bad debts expense for the year 11,000Accounts receivable—December 31, 2018 235,000Credit sales during the yearAllowance for doubtful accounts—December 31, 20181,600,00018,000 Calculate the net realizable value of the accounts receivable.
Kandel Company had the following data available for 2014 (before making any adjustments): Accounts receivable, 12/31/14 Allowance for doubtful accounts Net credit sales, 2014 $320,100 (Dr.) 2,600 (Cr.) 834,000 (Cr.) Required 1. Prepare the journal entry to recognize bad debts under the following assumptions: (a) bad debts expense is expected to be 2% of net credit sales for the year and (b) Kandel expects it will not be able to collect 6% of the balance in accounts receivable at year-end. 2. Assume instead that the balance in the allowance account is a $2,600 debit. How will this affect your answers to part (1)?
At the end of the annual reporting period, the accounts of Berry Company showed the following information: a. Sales Revenue for 2015, P180,000 of which one sixth was on credit. b. Allowance for doubtful accounts, balance January 1, 2015, P900 credit. c. Accounts receivable, balance December 31, 2015 ( prior to the write-off of uncollectible accounts during 2015), P18,050. d. Uncollectible accounts to be written off, December 31, 2015, P1,050. e. Aging schedule at December 31, 2015, showing the following breakdown of total accounts receivable: Status Amount % Uncollectible Not past due P10,000 .5% Past due 1-60 days 4,000 1% Past due over 60 days 3,000 8% Question: 1. During 2015, how much of the accounts receivable was collected? a. P12,500 b. P11,950 c. P10,950 d. P11,000 2. On total receivables at year-end, using the aging of accounts receivable, what is the entry to record bad debts expense ? a. Debit Bad debts expense 330; credit Allowance for bad debts 330…
A 15
Question: In 2015, Warehouse 13 had net credit sales of $750,000. On January 1, 2015, Allowance for Doubtful Accounts had a credit balance of $16,000. During 2015, $29,000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivable basis). If the accounts receivable balance at December 31 was $150,000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2015? a) $29,000 b) $31,000 c) $150,000 d) $28,000