At the end of the current year, the accounts receivable account has a balance of $903,000 and sales for the year total $10,240,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions: a. The allowance account before adjustment has a negative balance of $(12,200). Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a negative balance of $(12,200). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000. c. The allowance account before adjustment has a positive balance of $4,700. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a positive balance of $4,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000.

At the end of the current year, the accounts receivable account has a balance of $903,000 and sales for the year total $10,240,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following independent assumptions: a. The allowance account before adjustment has a negative balance of $(12,200). Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a negative balance of $(12,200). An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000. c. The allowance account before adjustment has a positive balance of $4,700. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a positive balance of $4,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000.

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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