A company uses a gross method for recording cashdiscounts and the income statement method forassessing bad debt expense. Sales revenue for creditsales during the period was $300. Sales discounts of$20 were also recorded when collecting customeraccounts. The allowance for doubtful accounts has acredit balance of $10 at the beginning of the periodand the ending balance of the accounts receivableaccount for the period was $200.Determine bad debt expense for the period if thecompany uses a 10% estimate.

Step 1: Calculate Net Credit SalesGiven:Total credit sales: $300Sales discounts: $20Calculation:Net…

Answered: A company uses a gross method for…

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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Similar questions

Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of $85,500. Doer uses the income statement method to report bad debt estimation. The estimation percentage is 3.5%. What is the estimated balance uncollectible using the income statement method? $2,992.50 $13,650 $136,500 $29,925
A company had sales of $60,400 and cost of goods sold of $15,200 for the period. The company uses the percentage of sales method and estimates 3% of sales will result in uncollectible accounts. Before the end of period adjustment is made, the allowance for doubtful accounts has a debit balance of $440. After making the adjustment for Bad Debt Expense, what is the amount of the ending balance in the Allowance for Doubtful accounts? $______
Please help me to solve this problem
At the end of the fiscal year, before the accounts are adjusted, accounts receivable has a balance of $200,000 and allowance for doubtful accounts has a credit balance of $2,500. Sales are $1,500,000. Bad debt expense is estimated to be 2% of sales. The amount of bad debt expense to be recorded is: Group of answer choices
a. Calculate the total estimated bad debts based on the above information.
Compare Two Methods of Accounting for Uncollectible Receivables been obtained from the accounts: Required: Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers. Call Systems Company Bad Debt Expense
At the beginning of period, Ammar Co. had balances in account receivable of $ 400,000 and allowance for doubtful accounts of $ 12,000 (credit). During the period, it had net credit sales of $ 1,200,000 and collections of $ 1,050,000. It wrote as uncollectible accounts receivable of $ 9,500 However, a $4,500 account previously written off as uncollectible was recovered at the end of period. Uncollectible accounts are estimated to total $35,000 at the end of period. a. Prepare the entries to record sales and collections during the period ? b. Prepare the entry to record the write-off of uncollectible accounts during the period? C. Prepare the entries to record the recovery of uncollectible accounts during the period? d. Prepare the entry to record bad debt expense for the period ? . Determine the ending balances in account receivable and allowance for doubtful accounts ? f. Determine the net realizable value ? Can you help me with these questions?
Please do not provide answer not image formate thank you. A company reports a year end credit sales in the amount of 390,000 and accounts receivable of $85,500. The company uses the balance sheet method to report bad debt estimation. The estimation percentage is 3.5%. There is a current debut balance of $2,000 in the bad debt account and a $2,000 credit balance in the allowance for doubtful accounts. Record the journal entry using the income statement method. Then record this transaction using T accounts. edit: The transaction is to be recorded with the balance sheet method and not the income statement method*
Rahul
Michael Company uses the percent-of-sales method for estimating bad debts expense. The company's bad debt expense normally 4% of net credit sales which were $410,000 for the year. During the year $2,700 was written off. The Allowance for Bad Debts account had a beginning debit balance of $1,000. What is the net realizable value of receivables if Accounts Receivable has a balance of $300,000? ⒸA. $410,000 B. $287.300 OC. $279,900 D. $283,600
Use the following information to answer the next two questions: Lewis Company uses the allowance method for recording its expected credit losses. It estimates bad debts at 2% of credit sales, which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a balance of $12,200 before adjustments. What is the amount of bad debt expense Lewis Company will report on their Income Statement this year? Select one: a. 17,756 b. 3,000 c. 12,200 d. 18,000 e. 2,756
Cortez Corporation uses the percentage of sales method to estimate its uncollectible accounts. Cortez has an ending balance of accounts receivable of $10,000. The allowance for doubtful accounts showed a balance of $1,000 in the beginning of the period. During the year, a total of $300 in accounts was written off as uncollectible. The company made credit sales of $100,000 in the current period. It estimates that 5% of sales will prove to be uncollectible. What is the ending balance of allowance for doubtful accounts of the company for the current period? Please don't provide answer in image format thank you

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