At the beginning of the year, accounts recelvable were $146,000 and the allowance for bad debts was $11,700. During the year, sales(all on account) were $602,000, cash collections were $582,000, bad debts expense totaled $14,800, and $12,200 of accountsrecelvable were written off as bad debts.Required:Calculate the balances at the end of the year for the Accounts Recelvable and Allowance for Bad Debts accounts. (Hint. Use T-accounts to analyze each of these accounts, plug In the amounts that you know, and solve for the ending balances.)Ending balanceAccounts receivableAllowance for bad debts

T-Accounts: T-accounts are referred as T-account because its format represents the letter “T”. The…

Answered: At the beginning of the year, accounts…

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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Innovative Tech Inc. (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $100,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: Prepare the November adjusting entry for bad debts. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $93,200, aged as follows: (1) 1–30 days old, $77,000; (2) 31–90 days old, $12,000; and (3) more than 90 days old, $4,200. The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,700 credit balance at December 31. Prepare the December 31 adjusting entry. Show how the various accounts…
At year end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days past due. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year end adjustments. Using the aging of accounts receivable method, Chief estimates that 1% of current accounts and 10% of accounts over 30 days past due are uncollectible. what is the amount of bad debt expense?
At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable
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
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was$58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.Required:1. Determine bad debt expense.2. Prepare the journal entry to record bad debt expense.3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how muchwould bad debt expense reported on the income statement have changed?
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The accounts receivable balance for Renue Spa at December 31, Year 1, was $88,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,900. Total retained earnings at the end of Year 1 was $85,100. During Year 2, $1,900 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $170 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $213,000, and cash collections from receivables were $214,954. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. 2. (2) Balance of Accounts Receivable at December 31, Year 2. 3. (3) Net realizable value of Accounts Receivable at December 31, Year…
The Allowance for Bad Debts account had a balance of $6,700 at the beginning of the year and $8,900 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $12,200 was recognized. Required: Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
At year end, Accounts Receivable had a balance of $820,000 and it is estimated that 4% of accounts receivable will be uncollectible. The Allowance for Bad Debts account has a credit balance of $5,000 and the company use the percent of receivables method to record bad debts expense. The adjusted balance in the Allowance for Bad Debts account should be a credit of OA. $37,600 OB. $32,600 OC. $27,800 OD. $32,800
The ledger of the Swifty Corporation at the end of the current year shows Accounts Receivable of $210,000. If Allowance for Doubtful Accounts has a credit balance of $4,300 in the trial balance and bad debts are expected to be 9% of accounts receivable, journalize the adjusting entry for the end of the period.
The accounts receivable balance for Renue Spa at December 31, Year 1, was $86,000. Also on that date, the balance in the Allowance for Doubtful Accounts was $2,300. Total retained earnings at the end of Year 1 was $83,700. During Year 2, $2,600 of accounts receivable were written off as uncollectible. In addition, Renue unexpectedly collected $130 of receivables that had been written off in a previous accounting period. Services provided on account during Year 2 were $214,000, and cash collections from receivables were $215,963. Uncollectible accounts expense was estimated to be 1 percent of the sales on account for the period. Required a. Organize the information in accounts under an accounting equation. b. Based on the preceding information, compute (after year-end adjustment): 1. (1) Balance of Allowance for Doubtful Accounts at December 31, Year 2. 2. (2) Balance of Accounts Receivable at December 31, Year 2. 3. (3) Net realizable value of Accounts Receivable at December 31, Year…
At the end of the current year, Accounts Receivable has a balance of $800,000; Allowance for Doubtful Accounts has a credit balance of $7,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1⁄2of 1% of net sales. Determine:The amount of the adjusting entry for uncollectible accounts;The adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense;The net realizable value of accounts receivable.

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