3. The following data are from company's records for 2013: Accounts receivable-January1, 2013 $224,000 Credit sales during 2013 3,100,000 Collections from credit customers during 2013 3,015,000 Customer accounts written off as uncollected during 2013 6,000 Allowance for doubtful accounts-January 1, 2013 6,700 Estimated uncollected accounts based on an aging analysis 7,200 If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2013? What is the balance of accounts receivable at 12/31/2013? If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense for 2013?

3. The following data are from company's records for 2013: Accounts receivable-January1, 2013 $224,000 Credit sales during 2013 3,100,000 Collections from credit customers during 2013 3,015,000 Customer accounts written off as uncollected during 2013 6,000 Allowance for doubtful accounts-January 1, 2013 6,700 Estimated uncollected accounts based on an aging analysis 7,200 If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense for 2013? What is the balance of accounts receivable at 12/31/2013? If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense for 2013?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

See similar textbooks

Similar questions

Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000 accounts receivable balance at the end of 2018 and $841,000 at the end of 2019. Clovis uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Clovis changes bad debt estimation to the balance sheet method at 5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Clovis Enterprises in 2019 as a result of its earnings management.
The data below is for Music Corporation for 2016. Accounts receivable—January 1, 2016 $236,000 Credit sales during 2016 820,000 Collections from credit customers during 2016 590,000 Customer accounts written off as uncollectible during 2016 8,000 Allowance for doubtful accounts—January 1, 2016 8,700 Estimated uncollectible accounts based on an aging analysis 9,600 Refer to the data for Music Corporation. If the aging approach is used to estimate bad debts, what amount should be recorded as bad debt expense for 2016? a. $8,000b. $8,100 c. $8,700 d. $8,900
The data below is for Alta Corporation for 2016.Accounts receivable--December 31, 2016 $2,144,000Customer accounts written off as uncollectible during 2016 32,000Allowance for doubtful accounts--January 1, 2016 34,800Estimated uncollectible accounts based on an aging analysis 42,400 If the aging approach is used to estimate bad debts, determine the bad debt expense for 2016.
3. Jinx Company provided the following information for 2013 in relation to accounts receivable: Accounts receivable, January 1 Credit sales 1,300,000 5,500,000 150,000 Sales return Accounts written off 100,000 5,000,000 Collections from customers Estimated future sales return on December 31 50,000 250,000 Estimated uncollectible accounts per aging at year-end What amount should be reported as net realizable value of accounts receivable on December 31, 2013? a. 1,550,000 b. 1,250,000 c. 1,300,000 d. 1,500,000
36. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…
The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 Provision for doubtful accounts $ 55 million $ 34 million At Fiscal Year- At Fiscal Year-end 2014 end 2015 Accounts receivable, net 13,453 million 13,651 million Accounts receivable, gross 13,922 million 14, 163 million Using a T-account for the allowance for doubtful accounts, identify the changes in the account during fiscal year 2015. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Beginning Balance Ending Balance Allowance for Doubtful Accounts
Provide Answer
CHECK OUT: 1. At December 31, 2013, XYZ Co. reported the following information on its balance sheet: Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During 2014, the company had the following transactions related to receivables. 1. Sales on account of $3,700,000 2. Sales returns and allowances 50,000 3. Collections of accounts receivable 2,810,000 4. Write-offs of accounts receivable deemed uncollectible 90,000 5. Recovery of bad debts previously written off as uncollectible 29,000 Instructions: A. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. B. Enter January 1, 2014, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances. C. Prepare the journal entry to record bad debt expense for 2014, if the aging of accounts receivable indicates that expected bad debts…
The following data are from the company's records for the year ended December 31: Accounts receivable--January 1 $ 350,000 Credit sales during the year 1,200,000 Collections from credit customers during the year 850,000 Customer accounts written off as uncollected during the year 10,000 Allowance for doubtful accounts--January 1 35,000 Estimated uncollected accounts based on an aging analysis 50,000 If the aging method is used to estimate bad debts, what amount should be recorded as bad debt expense?
Need help with this Question