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

See similar textbooks

Similar questions

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
Based on the information: Credit sales - P 172,000 credit Collections on accounts receivable during the year - P170,000 credit Cash sales - 810,000 credit Unadjusted balance in Allowance for doubtful accounts - 50 debit Sales returns and allowances for credit sales - 4,000 debit Accounts receivable, beginning of the year - 14,000 debit If bad debts are estimated to be 1 1/2% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: a. P 230 b. P 180 c. P 130 d. P 190
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
Tammany Professional Engineers uses the Percentage of Receivables method to account for bad debt. The following is a summary of Tammany’s Accounts Receivable Aging Report. Cash Sales $42,000 Credit Sales $21,000 Allowance for Uncollectible Accounts December 31, 2020 $4,375 Current > 30 >60 >90 $115,000 $98,000 $75,000 $15,000 Estimated Uncollectible 1% 2% 4% 5% Required: Prepare the total estimate of uncollectible accounts and give the amount of the required adjustment. Do not prepare a journal entry. Please show your work if possible. In addition to submitting your answer here, you should also write it down so you an use it for the next problem.
(8 Problems 1) On January 1, 2021, Cali Consulting has a $110,000 balance in accounts receivable and a $0 balance in the Allowance for Uncollectible Accounts. During 2021, Cali provides $205,000 of service on account. The company collected $190,000 cash from Accounts Receivable. Uncollectible accounts are estimated to be 3% of sales on account. a. What is the amount of uncollectible accounts expense recognized in 2021? b. What is the amount of cash flows from Operating activities that would appear on the 2021 Cash Flow statement? Show the impact (with amounts) of each of the following items on the horizontal C. Oquation. For the asset section, name the specific accounts impacted. i. Record Sales during the year on account of $205,000. ii. Show the impact of $190,000 cash collected during the year. ii. Establish an Allowance for Uncollectible Accounts at year-end. 3. Study guide - Chapter 5 (with solutions).docx O A 69°F P. f5 f12 6J prt sc I14 &
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 280,000 Credit sales $ 700,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 630,000 debit Allowance for doubtful accounts $ 5,000 debit 3. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Only typing answer Please explain step by step without table and graph
Wohoo Publishers uses the allowance method to estimate uncollectible accounts receivables. The company produced the following aging of the accounts receivable at year-end (Y in thousands). Accounts receivable % uncollectible Estimated bad debts Total 200,000 0-30 days 77,000 2% 31-60 days 46,000 5% 61-90 days 91-120 days 39,000 6% 23,000 10% Over 120 days 15,000 25%
Keel Company's December 31 balances from the prior year related to accounts receivable follow. Accounts receivable (Dr.) Allowance for doubtful accounts (Cr.) $500,000 10,000 During the current year, $15,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for the current year are $2,000,000, of which $400,000 are cash sales. A total of $1,500,000 cash was collected during the current year from sales that were originally made on account. Required a. Assuming that Keel applies the allowance method to estimate net accounts receivable and uses 10% of accounts receivable as its estimate of expected credit losses, prepare the disclosure on gross and net accounts receivable on the balance sheet at December 31 of the current year. • Note: Do not use negative signs in your answers. Balance Sheet, December 31 Accounts receivable Less: Allowance for doubtful accounts Accounts receivable, net 0
14. Record the write-off. Choose * Account Payable * Allowance for Uncollectible Accounts * Sales Returns and Allowanced * Bad debt expense * Cash * Accounts Receivable
2. XYZ Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Number of Days Outstanding Total 200,000 77,000 0-30 31-60 61-90 91-120 Accounts receivable % uncollectible Over 120 $15,000 46,000 39,000 23,000 1% 20% 4% 5% 8% Estimated bad debts Instructions: A. Calculate the total estimated bad debts based on the above information. B. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (A). Assume the current balance in Allowance for Doubtful Accounts is an $8,000 debit. C. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. D. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (C). Prepare the journal entry (ies) necessary to restore the account…
At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 80,000 $ 200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 108,000 debit $ 1,100 debit Problem 7-2A (Algo) Part 2 2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets:
Walgreens provided the following information before any year end adjusments: Net credit sales are $120,000 Historical percentage of credit losses is 2% Allowance for doubtful accounts has a credit balance of $300. Accounts receivables ending balance is $47,000. What is the estimated bad debt expense using the percentage of credit sales method? A. $2,400 B. $2,100 C. $940 D. $2,700