View transaction list1 Bad debts are estimated to be 4% of credit sales.2 Bad debts are estimated to be 3% of total sales.3An aging analysis estimates that 7% of year-endaccounts receivable are uncollectible.EXEX: At December 31, a company reports the following results for its calendar year.Credit salesCash sales$ 3,851,000$ 1,642,320Also, its unadjusted trial balance includes the following items.Accounts receivableAllowance for doubtful accountsRequired:$1,166,853debit$ 28,260 credita. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated tobe 4% of credit sales.b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated tobe 3% of total sales.c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated tobe 7% of year-end accounts receivable.

Bad Debt Expense is a ledger used to record provision made for uncollectible accounts. For those…

At December 31, a company reports the following results for its calendar year. Credit sales Cash sales $ 3,851,000 $ 1,642,320 Also, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 1,166,853 debit $ 28,260 credit Required: a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 4% of credit sales. b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 3% of total sales. c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 7% of year-end accounts receivable.

At December 31, a company reports the following results for its calendar year. Credit sales Cash sales $ 3,851,000 $ 1,642,320 Also, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 1,166,853 debit $ 28,260 credit Required: a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 4% of credit sales. b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 3% of total sales. c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 7% of year-end accounts receivable.

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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Steve Company estimates uncollectible accounts receivable using percentage of receivable method. During the month of August, the company wrote off a $7 ,000 receivable. Following the adjusting entry for August, the credit balance in the Allowance for Doubtful Accounts was $6,000 larger than it was on I August. What amount of bad debt expense was recorded for August? A: $5,000 B: $2,000 C: $3,000 D: $13,000
At the end of the current year, Accounts Receivable has a balance of $717,190; Allowance for Doubtful Accounts has a credit balance of $5,712; and sales for the year total $3,403,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. $2,181,050 $3,134,000 Cash sales Credit sales In addition, its unadjusted trial balance includes the following items. $949,602 debit $10,550 debit Accounts receivable Allowance for doubtful accounts 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c. (Do not round intermediate calculations.) Current assets.
At the end of the current year, Accounts Receivable has a balance of $108,290; Allowance for Doubtful Accounts has a debit balance of $4,896; and sales for the year total $1,186,000. Bad debt expense is estimated at 1/2 of 3% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
At the end of the current year, Accounts Receivable has a balance of $195,120; Allowance for Doubtful Accounts has a debit balance of $4,422; and sales for the year total $1,086,000. Bad debt expense is estimated at 3% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
Required information. [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales. Credit sales $ 400,000 $1,000,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable. $ 900,000 debit Allowance for doubtful accounts $ 7,200 debit 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: $ 0
At December 31, Hawke Company reports the following results for its calendar year. In addition, its unadjusted trial balance includes the following items. Cash sales. $1,905,000 Credit sales. $5,682,000 Accounts receivable. $1,270,100 debit Allowance for doubtful accounts. $16,580 debit Required 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 1.5% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c.
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 1,905,000 $ 5,682,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 1,270, 100 debit $ 16,580 debit 2. Bad debts are estimated to be 1.5% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: Accounts payable $ 0
Required information Skip to question [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 480,000 debit Allowance for doubtful accounts $ 5,800 debit 2. Bad debts are estimated to be 2% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
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Allowance for Doubtful Accounts has a debit balance of $439 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 1% of sales. If net credit sales are $928,100, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a.$8,842 b.$9,720 c.$439 d.$9,281
The unadjusted trial balance of ABC Company reports the following balances at the end of the year: Dr Cr Accounts receivable $50,000Allowance for doubtful accounts $ 2,000 Sales (all on credit) 100,000Sales returns and allowances 25,000Sales discounts 5,000Instructions:Prepare the journal entry to record bad debt expense assuming that bad receivables are estimated to be 5% of ending accounts receivable.