Accounts Receivable of Zein Company during 2020 was $90,000, it's Sales Revenue was $750,000, Sales Return and Allowance $100,000 and Sales Discount $60,000. AFDA has a credit balance of $2,000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 6% of Accounts Receivable will include: * AFDA $37,400 AFDA $33,400 AFDA $7,400 AFDA $3,400 None of the above

Accounts Receivable of Zein Company during 2020 was $90,000, it's Sales Revenue was $750,000, Sales Return and Allowance $100,000 and Sales Discount $60,000. AFDA has a credit balance of $2,000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 6% of Accounts Receivable will include: * AFDA $37,400 AFDA $33,400 AFDA $7,400 AFDA $3,400 None of the above

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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The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
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Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.
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Accounts Receivable of Power Company during 2020 was $140,000; it's Sales Revenue was $500,000, Sales Return and Allowance $40,000 and Sales Discount $10,000. AFDA has a debit balance of $2,000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 4% of Accounts Receivable will include: * AFDA $20,000 AFDA $7,600 AFDA $5,600 O AFDA $3,600 O None of the above