Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end: Account Debit Credit Sales $1,690,000 Accounts receivable Allowance for doubtful accounts $152,000 3,200 Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020. Answer is complete but not entirely correct. No Date General Journal Debit Credit Oct 31, 2020 Bad debt expense 1,150 8 Allowance for doubtul accounts 1,150 0 Allowance for doubttul accounts 1,150 O Accounts receivable 1,150 0 b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a). Answer is not complete.
Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end: Account Debit Credit Sales $1,690,000 Accounts receivable Allowance for doubtful accounts $152,000 3,200 Part 1 Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020. Answer is complete but not entirely correct. No Date General Journal Debit Credit Oct 31, 2020 Bad debt expense 1,150 8 Allowance for doubtul accounts 1,150 0 Allowance for doubttul accounts 1,150 O Accounts receivable 1,150 0 b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a). Answer is not complete.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end:
Account
Debit
Credit
Sales
$1,690,000
Accounts receivable
Allowance for doubtful accounts
$152,000
3,200
Part 1
Required:
a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020.
Answer is complete but not entirely correct.
No
Date
General Journal
Debit
Credit
Oct 31, 2020
Bad debt expense
1,150 8
Allowance for doubtul accounts
1,150 0
Allowance for doubttul accounts
1,150 O
Accounts receivable
1,150 0
b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a).
Answer is not complete.
Partial Balance Sheet
Assets
Current assets:
Part 2
Required:
c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry
October 31, 2020.
Answer is not complete.
No
Date
General Journal
Debit
Credit
d. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (c).
Partial Balance Sheet
Assets
Current assets
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