Problem 5-6 (PHILCPA Adapted)At the beginning of current year, Rampant Companyreported that the allowance for doubtful accounts has a creditbalance of P170,000.Bad debt recoveries and bad debts written off in the currentyear were P30,000 and P235,000, respectively.The allowance account had been previously calculated as apercentage of net sales.It was decided however to provide for doubtful accountscommencing with the year-end adjusting entry on the basis ofan analysis of the age of the accounts receivable.2.The following schedule was prepared.PercentuncollectibleNot yet due1-30 days past due31-60 days past due61-90 days past dueOver 90 days past dueAdditional accounts to be written off1,700,0001,200,000100,000150,000120,00030,000NIL2550100Required:1. What amount should be reported as required allowancefor doubtful accounts at year-end?2. How much would be the doubtful accounts expense forthe current year?3. What is the adjusting entry for the doubtful accountsexpense for the current year?4. What amount should be reported as net realizable valuebf AlcQUADSCAMERAble at year-end?Shot by jeremy2021/10/06 10:37155

At the beginning of current year, Rampant Company reported that the allowance for doubtful accounts has a credit balance of P170,000. Bad debt recoveries and bad debts written off in the current year were P30,000 and P235,000, respectively. The allowwance account had been mreviously calculated as a

At the beginning of current year, Rampant Company reported that the allowance for doubtful accounts has a credit balance of P170,000. Bad debt recoveries and bad debts written off in the current year were P30,000 and P235,000, respectively. The allowwance account had been mreviously calculated as a

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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Pichai Party Supplies reported an allowance for doubtful accounts of $24,000 at the beginning of the fiscal year and $32,000 at the end of the fiscal year. During the year, the company recognized bad debt expense of $30,000. What amount did the company record as accounts receivables write-offs during the year? $30,000. $22,000. None of the answers are correct. $32,000. $24,000.
HIRDT CO. USES THE PERCENTAGE-OF- RECEIVABLES BASIS TO RECORD BAD DEBT EXPENSE AND CONCLUDES THAT 3% OF ACCOUNTS RECEIVABLE WILL BECOME UNCOLLECTIBLE. ACCOUNTS RECEIVABLE ARE $401,100 AT THE END OF THE YEAR, AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAS A CREDIT BALANCE OF $3,110. IF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAD A DEBIT BALANCE OF $890 INSTEAD OF A CREDIT BALANCE OF $3,110, PREPARE THE ADJUSTING JOURNAL ENTRY FOR BAD DEBT EXPENSE.
Zebra Company reported the following for 2022: Credit sales = $419884 Accounts Receivable = $16376 Allowance for Doubtful Accounts = $291 (credit balance) Bad Debt is estimated at 0.31 of 1% of sales After the adjusting entry is recorded, what is the value of Allowance for Doubtful Accounts? ROUND TO THE NEAREST DOLLAR
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Errol Company estimates its allowance for doubtful accounts usingpercentage of sales method. The total sales of the company for 2021amounted to P10,000,000, P3,000,000 of which are sold for cash. Erroldetermined that 12% is an appropriate estimate of bad debts expense.Errol also provided the following information:Write-offs during the period amounted to P500,000Allowance for doubtful accounts at the beginning of 2021 amounted toP285,000Recoveries of amounts previously written-off amounted to P120,000The accounts receivable as of December 31, 2021 is P5,000,000How much is the allowance for doubtful expense account as ofDecember 31, 2021?
During the current year, Sun Electronics, Incorporated, recorded credit sales of $760,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales. a. On November 13 of the current year, an account receivable for $430 from a prior year was determined to be uncollectible and was written off. b. At year-end, the appropriate bad debt expense adjustment was recorded for the current year. Required: Indicate the effects of the transactions in the following table. Indicate the accounts affected and enter decreases to account categories with a minus sign. Transaction a. a. b. b. Assets Liabilities Stockholders' Equity
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts asbelow. Ignore GST. On 01/06 Accounts Receivable = 849555 Allowance for doubtful debt =12100 During June, the following transactions occurred:1. Revenue earned on credit, $1,195,000.2. Sales returns, $24,100.3. Accounts receivable collected, $1,400,000.4. Accounts written off as uncollectable, $15,851.Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance forDoubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June.Ignore GST.Required:(a) Prepare general journal entries to record the four transactions and to adjust the Allowance forDoubtful Debts account.(b) Show how accounts receivable and the allowance for doubtful debts would appear on the balancesheet at 30 June. (c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June, paid itsaccount in full. Prepare journal entries to record…
Alpaca Consulting Inc reported net sales of $1,500,000 for the year. Also, at at the end of the year, the company reported balances of $390,000 and $3,800 of accounts receivables and allowance for doubtful accounts, respectively. All amounts and balances have normal balances. REQUIRED: 1. Assume the company estimates its bad debts as 1.20% of net sales. Record the required adjusting entry to record bad debts. The journal must be properly formatted. 2. Assume the company estimates its uncollectible accounts as 5% of accounts receivable. Record the required adjusting entry to record bad debts. The journal must be properly formatted.
FDN Trading reported sales of P254,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a balance of P534. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be P7,226. In the adjusting entry to record the estimated losses for doubtful accounts, how much should be debited to Doubtful Accounts Expense?
Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $ 620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $ 3,320. (a) V Your answer is correct Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Bad Debt Expense 9080 Allowance for Doubtful Accounts 9080 eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) Your answer is partially correct. If the allowance for doubtful accounts had a debit balance of $ 800 instead of a credit balance of $ 3,320, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically…
Vaughn Manufacturing has outstanding accounts receivable totaling $1.26 million as of December 31 and sales on credit during the year of $6.50 million. There is also a debit balance of $6200 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense? O $31400. $25200. $19000. $25076.
A company uses the percent of receivables method to estimate doubtful accounts. At the end of the calendar year, it has the following unadjusted balances: Accounts Receivable, debit balance of Php 280,000 and Allowance for Doubtful Accounts, debit balance of Php 2,000, Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible, what amount should be debited to Bad Debts Expense?