At the end of the current year, Accounts Receivable has a balance of $700,000; the Allowance for Doubtful Accounts has a debit balance of $5,500; and credit sales for the year total $7,500,000 and cash sales totaled $1,000,000. The company estimated, based on aging of receivables, that $36,000 of receivables will be uncollectible.. Determine (a) the amount of the adjusting entry for bad debt expense and (b) the net realizable value of accounts receivable.

At the end of the current year, Accounts Receivable has a balance of $700,000; the Allowance for Doubtful Accounts has a debit balance of $5,500; and credit sales for the year total $7,500,000 and cash sales totaled $1,000,000. The company estimated, based on aging of receivables, that $36,000 of receivables will be uncollectible.. Determine (a) the amount of the adjusting entry for bad debt expense and (b) the net realizable value of accounts receivable.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
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Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
The year-end balance in accounts receivable is $300,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 credit, accounts written off during the year were $2,200. An aging of accounts receivable determined that $6,000 of receivables will be uncollectible. What is the net realizable value of accounts receivable at year end? $298,700 $294,000 $293,700 $294,300
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Sims Inc. had a $195,000beginning balance in Accounts Receivable. During the year, credit sales totaled $820,000, and collections from customers amounted to $700,000. What was the net amount of receivables included in current assets at the end of the year, before any provision for doubtful accounts?
At the end of the current year, the accounts receivable account has a debit balance of $821,000 and sales for the year total $9,310,000. The allowance account before adjustment has a debit balance of $11,100. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $11,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $35,500. The allowance account before adjustment has a credit balance of $6,500. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $6,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $54,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ b. $ c. $ d. $
Upon completing an aging analysis of accounts receivable, the accountant for Richmond Industries prepared an aging of accounts receivable and estimated that $7,200 of the $115,400 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $620 debit balance at year-end prior to adjustment. How much is the bad debt expense? a. $620 b. $6,580 c. $7,820 d. $7,200
At the end of the current year, the accounts receivable account has a debit balance of $1,935,000 and sales for the year total $26,710,000. The allowance account before adjustment has a debit balance of $10,200. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $10,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $175,000. The allowance account before adjustment has a credit balance of $25,760. Bad debt expense is estimated at 3/4 of 1% of sales. The allowance account before adjustment has a credit balance of $25,760. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $170, 420. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. Assumption Amount a. Still in the blank 1 b. Sfill in the blank 2 c. Sfill in the blank 3 d. Sfill in the blank 4