A trial balance before adjustment included the following: Credit Debit $1,640,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances 19,200 $10,690,000 180,000 A) Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 6% of gross accounts receivable and (2) 1% of gross sales. B) Give journal entries assuming that the estimate of uncollectibles are the same as above but the Allowance for Doubtful Accounts has a Debit Balance of $15,400

A trial balance before adjustment included the following: Credit Debit $1,640,000 Accounts receivable Allowance for doubtful accounts Sales Sales returns and allowances 19,200 $10,690,000 180,000 A) Give journal entries assuming that the estimate of uncollectibles is determined by taking (1) 6% of gross accounts receivable and (2) 1% of gross sales. B) Give journal entries assuming that the estimate of uncollectibles are the same as above but the Allowance for Doubtful Accounts has a Debit Balance of $15,400

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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Assume Simple Company had credit sales of $243,000 and cost of goods sold of $143,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $180. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
View Policies Current Attempt in Progress Assume the following information for Teal Mountain Corp. Accounts receivable (beginning balance) Allowance for doubtful accounts (beginning balance) Net credit sales Collections Write-offs of accounts receivable Collections of accounts previously written off (a) Account Titles and Explanation Uncollectible accounts are expected to be 6% of the ending balance in accounts receivable. (To record sales on account) (To record collection of accounts receivable) Prepare the entries to record sales and collections during the period. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) eTextbook and Media $143.000 List of Accounts 11,340 Save for Later Using multiple attempts will impact your score. 10% scare reduction after attempt 5 930,000 912.000 6,400 2,200…
At December 31, Gill Co. reported accounts receivable of $236,000 and an allowance for uncollectible accounts of $1,450 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 2% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $1,450 $4.980 $3,270. $4,720
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At December 31, Gill Co. reported accounts receivable of $281,000 and an allowance for uncollectible accounts of $1,600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $8,340. $1,600. $8,430. $6,830.
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