8 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19-credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's allowance for bad debts that shall be presented in its 2020 statement of financial position?

8 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19-credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's allowance for bad debts that shall be presented in its 2020 statement of financial position?

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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7 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19 - credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's bad debts expense that shall be presented in its 2020 statement of financial performance?
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GG Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Company make to record the bad debts expense? Select one: a. Bad Debt Expense .25,000 Allowance for Doubtful Accounts 25,000 b. Bad Debt Expense.... .32,000 Accounts Receivable 32,000 C. Bad Debt Expense .32,000 Allowance for Doubtful Accounts 32,000 d. The answer does not exist e. Bad Debt Expense ..... 25,000 Accounts Receivable 25,000 HIBA F1 F2 F3 F4 F5 B/O F6 F7 F8 F9 F10 图 PRTSC SYSRQ F11 F12 # $ 4 & * 3 6 8 9 НOME 7 PGUP E Y ! ق 4 D. F H J K END PGON w. R