At the end of the current year, the accounts receivable account has a debit balance of $636,000 and sales for the year total $7,220,000. a. The allowance account before adjustment has a credit balance of $8,600. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $8,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $27,500. c. The allowance account before adjustment has a debit balance of $4,700. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $4,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000. 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. $

At the end of the current year, the accounts receivable account has a debit balance of $636,000 and sales for the year total $7,220,000. a. The allowance account before adjustment has a credit balance of $8,600. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $8,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $27,500. c. The allowance account before adjustment has a debit balance of $4,700. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $4,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $39,000. 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. $

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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At the end of the year, Dahl Enterprises estimates the uncollectible accounts expense to be 0.8 percent of net sales of $7,575,000. The current credit balance of Allowance for Uncollectible Accounts is $12,900. Prepare the entry to record the uncollectible accounts expense. What is the balance of Allowance for Uncollectible Accounts after this adjustment? You must show your computations.
Data for the year ended December 31 are presented below. Sales (100% on credit) $2,100,000 Sales returns 150,000 Accounts Receivable (December 31) 420,000 Allowance for Doubtful Accounts (Before adjustment at December 31) 25,000 Estimated amount of uncollected accounts based on an aging analysis 75,000 If the company uses the aging of accounts receivable method to estimate its bad debts, what will be the net realizable value of its accounts receivable after the adjustment for bad debt expense?
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Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,162,000 and sales for the year total $13,170,000. The allowance account before adjustment has a credit balance of $15,700. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $15,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $50,200. The allowance account before adjustment has a debit balance of $9,100. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $9,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $75,500. 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. $