5) Based on the information:Credit sales1,720,000Collections on accounts receivable during the year1,700,0008,100,000Cash salesUnadjusted balance in Allowance for doubtful accounts500 debitSales returns and allowances for credit sales40,000Accounts receivable, beginning of the year140,000If bad debts are estimated to be 12 of ending accounts receivable, in the adjusting entry to recognize baddebts, you would debit bad debt expense for:A.2,300В.1.900C.1,300D.1.800

5) Based on the information: Credit sales 1,720,000 Collections on accounts receivable during the year 1,700,000 Cash sales 8,100,000 Unadjusted balance in Allowance for doubtful accounts Sales returns and allowances for credit sales 500 debit 40,000 Accounts receivable, beginning of the year 140,000 If bad debts are estimated to be 1% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: A 2,300 B. 1,900 c. 1,300 D. 1,800

5) Based on the information: Credit sales 1,720,000 Collections on accounts receivable during the year 1,700,000 Cash sales 8,100,000 Unadjusted balance in Allowance for doubtful accounts Sales returns and allowances for credit sales 500 debit 40,000 Accounts receivable, beginning of the year 140,000 If bad debts are estimated to be 1% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: A 2,300 B. 1,900 c. 1,300 D. 1,800

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...

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Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% 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 credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
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Conner Pride reports year-end credit sales in the amount of $567,000 and accounts receivable of $134,000. Conner uses the balance sheet method to report bad debt estimation. The estimation percentage is 4.6%. What is the estimated balance uncollectible using the balance sheet method? A. $26,082 B. $6,164 C. $260,820 D. $61,640
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