4. Tooele Company's controller estimated bad debt expense using the percentage of accounts receivable method. Total sales for the year were $500,000 of which 250,000 are on account The ending balance in accounts receivable was $100000. An examination of the outstanding accounts at the end of the year indicates that approximately 12 percent of these accounts will ultimately prove to be uncollectible. Before any adjusting entries, the balance in the Allowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjusting entry to record bad debt expense for the year? (The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or the Allowance for Uncollectible Accounts.) Bad Debt Expers ADA CREDIT Allowance for Bad Debts for $11,300 6. DEBIT Allowance for Bad Debts for $11,300 c. CREDIT Allowance for Bad Debts for $12,000 1,300 d. CREDIT Allowance for Bad Debts for $12,700- e. DEBIT Allowance for Bad Debts for $14,700 111300 fa DEBIT Bad Debt Expense for $12,700 b. DEBIT Bad Debt Expense for $11,300 C. CREDIT Bad Debt Expense for $12,700 d. CREDIT Bad Debt Expense for $11,300 e. DEBIT Bad Debt Expense for $12,000 13700 /R 12, 200 Accarts Payalde 5. Use the information provided in Question 4 about Tooele Company, but now assume the balance in the Allowance for Doubtful Accounts before adjusting entries is a $700 DEBIT. Which is part of the correct adjusting entry to record bad debt expense for the year? lago do вре ADA 700 700 11,300 12,000 X121700 12,000
4. Tooele Company's controller estimated bad debt expense using the percentage of accounts receivable method. Total sales for the year were $500,000 of which 250,000 are on account The ending balance in accounts receivable was $100000. An examination of the outstanding accounts at the end of the year indicates that approximately 12 percent of these accounts will ultimately prove to be uncollectible. Before any adjusting entries, the balance in the Allowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjusting entry to record bad debt expense for the year? (The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or the Allowance for Uncollectible Accounts.) Bad Debt Expers ADA CREDIT Allowance for Bad Debts for $11,300 6. DEBIT Allowance for Bad Debts for $11,300 c. CREDIT Allowance for Bad Debts for $12,000 1,300 d. CREDIT Allowance for Bad Debts for $12,700- e. DEBIT Allowance for Bad Debts for $14,700 111300 fa DEBIT Bad Debt Expense for $12,700 b. DEBIT Bad Debt Expense for $11,300 C. CREDIT Bad Debt Expense for $12,700 d. CREDIT Bad Debt Expense for $11,300 e. DEBIT Bad Debt Expense for $12,000 13700 /R 12, 200 Accarts Payalde 5. Use the information provided in Question 4 about Tooele Company, but now assume the balance in the Allowance for Doubtful Accounts before adjusting entries is a $700 DEBIT. Which is part of the correct adjusting entry to record bad debt expense for the year? lago do вре ADA 700 700 11,300 12,000 X121700 12,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Solve for question 5
Transcribed Image Text:£2
4. Tooele Company's controller estimated bad debt expense using the percentage of accounts
receivable method. Total sales for the year were $500,000 of which 250,000 are on account
The ending balance in accounts receivable was $100000. An examination of the outstanding
accounts at the end of the year indicates that approximately 12 percent of these accounts will
ultimately prove to be uncollectible. Before any adjusting entries, the balance in the
Allowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjusting
entry to record bad debt expense for the year?
(The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or the
Allowance for Uncollectible Accounts.)
Bad Debt Expers
ADA
CREDIT Allowance for Bad Debts for $11,300
6. DEBIT Allowance for Bad Debts for $11,300
c. CREDIT Allowance for Bad Debts for $12,000 1300
d. CREDIT Allowance for Bad Debts for $12,700-
e. DEBIT Allowance for Bad Debts for $14,700 1,300
a
b.
DEBIT Bad Debt Expense for $12,700
DEBIT Bad Debt Expense for $11,300
c. CREDIT Bad Debt Expense for $12,700
d. CREDIT Bad Debt Expense for $11,300
e. DEBIT Bad Debt Expense for $12,000
12,700
+/R
5. Use the information provided in Question 4 about Tooele Company, but now assume the
balance in the Allowance for Doubtful Accounts before adjusting entries is a $700 DEBIT.
Which is part of the correct adjusting entry to record bad debt expense for the year?
109000
вре
ADA
12, 700
700
700
11,300
ALB
12,000
-Accarts
Payable
X12,700
13,000
6. Use the information provided in Question 4 about Tooele Company. The company now
Togoo
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