A general ledger shows the following balances: • • • Accounts Receivable: $60,000 Allowance for Doubtful Accounts: $2,500 (credit balance) Sales: $550,000 If bad debts are estimated to be 8% of accounts receivable, what would be the bad debt expense for the year? a) $5,300 b) $4,800 c) $6,000 d) $2,300
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What would be the bad debt expense for the year?
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- 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? A. $13,650 B. $2,992.50 C. $136,500 D. $29,925Get correct answer general accountingNeed help this question solution
- Computing Bad Debts Under the Allowance Method Based on Receivables A company has a credit balance of $100 in its allowance for doubtful accounts. The amount of credit sales for the period is $160,000, and the balance in accounts receivable is $200. Assume that the expected credit losses are estimated to be 9% of accounts receivable. a. What is (1) bad debt expense for the year and (2) the ending balance in the allowance for doubtful accounts? 1. Bad debt expense Answer 2. Allowance for doubtful accounts Answer b. How would the answer to part a change (if at all) if the company had a debit balance of $1,200 in its allowance for doubtful accounts before any adjustment? 1. Bad debt expense Answer 2. Allowance for doubtful accounts Answer5) Based on the information: Credit sales 1,720,000 Collections on accounts receivable during the year 1,700,000 8,100,000 Cash sales Unadjusted balance in Allowance for doubtful accounts 500 debit Sales returns and allowances for credit sales 40,000 Accounts receivable, beginning of the year 140,000 If bad debts are estimated to be 12 of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: A. 2,300 В. 1.900 C. 1,300 D. 1.800The aging of accounts receivable shows the following data: 0-60 days due: balance is $74,500 with a 3% estimated uncollectible Over 60 days past due: balance is $4,000 with a 24% estimated uncollectible The current balance of Allowance for Bad Debits is a $500 CR Using the aging of receivables method, what is the balance of Allowance for Bad Debt? $3,195 DR $3,195 CR $3,695 CR $2,695 CR
- 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts 365,000 15,000 Net credit sales 827,000 Amount % Estimated Total Estimated Number of Days Outstanding Receivable Uncollectible Uncollectible 0-30 175,000 1.00% 31-60 80,000 2.00% 61-90 50,000 42,000 18,000 5.00% Page 1 91-120 20.00% Over 120 40.00% TOTALS 365,000 Page 2 General Ledger Accounts Receivable A Allowance for Doubtful XA Bad Debt Expense E Debit Credit Debit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME + General Journal DR CR 2 What is the net realizable value of Accounts receivable?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.$61,640 B.$260,820 C.$26,082 D.$6,164Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales $547,900 Allowance for doubtful accounts, 1/1 (a credit balance) 8,740 Accounts receivable, 1/1 42,340 Collections on account receivable 489,770 Accounts receivable written off 14,250 Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number).$fill in the blank 1 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable $fill in the blank 2 Allowance for doubtful accounts $fill in the blank 3