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
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Providing for Doubtful Accounts
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. $
Transcribed Image Text:Providing for Doubtful Accounts 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. $
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