Answered: Ava Company sets bad debt expense at 2… | bartleby

FINANCIAL ACCOUNTING

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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1 F
QUESTION 4
Ava Company sets bad debt expense at 2 percent of its sales. Ava reported total sales of $ 60,481. Before the adjustment, Ava
had $731 credit balance in its allowance for doubtful accounts.
How much bad debt expense did Ava report on its income statement?

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Discuss the different methods available to account for bad debts. Assume that you have a company. And the management estimates that 2.5% of sales will be uncollectible. Provide an amount of sales and prepare the journal entry using the percent of sales method (-
Your answer is partially correct. Try again. Concord Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $153,000 Allowance for Doubtful Accounts $3,030 Sales Revenue (all on credit) 834,500 Sales Returns and Allowances 50,540 Prepare the journal entry to record bad debt expense assuming Concord Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount i
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
Provide Correct
Marigold Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances (a) Dr. $153,000 No. Account Titles and Explanation (b) 50,540 Cr. Prepare the journal entry to record bad debt expense assuming Marigold Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) $3,030 834,500 Debit Credit
Alpaca Consulting Inc reported net sales of $1,500,000 for the year. Also, at at the end of the year, the company reported balances of $390,000 and $3,800 of accounts receivables and allowance for doubtful accounts, respectively. All amounts and balances have normal balances. REQUIRED: 1. Assume the company estimates its bad debts as 1.20% of net sales. Record the required adjusting entry to record bad debts. The journal must be properly formatted. 2. Assume the company estimates its uncollectible accounts as 5% of accounts receivable. Record the required adjusting entry to record bad debts. The journal must be properly formatted.
5. The Adams Company had total credit sales for the year of $1,500,000. As of year end, but before estimating bad debts, the company had a $130,000 debit balance in accounts receivable and a $500 credit balance in the allowance for uncollectible accounts. If the Adams Company estimates bad debts as 4% of ending accounts receivable, the journal entry of the Adams Company will be: a. Bad debt expense Allowance for doubtful accounts b. Bad debt expense Accounts receivable c. Bad debt expense Accounts receivable d. Bad debt expense Allowance for doubtful accounts $4,700 $5,200 $5,200 $5,700 $4,700 $5,200 $5,200 $5,700
Earrings Depot records bad debt using the allowance, balance sheet method. They recorded $97,440 in accounts receivable for the year and $288,550 in credit sales. The uncollectible percentage is 5.5%. What is the bad debt estimation for the year using the balance sheet method?
K During the year, Taylor Company had net credit sales of $47,000. At the end of the year, before adjusting entries, the balance in Accounts Receivable was $14,000 (debit) and the balance in Allowance for Bad Debts was $610 (credit). If the company uses an income statement approach to estimate bad debts at 7%, what is the ending balance in the Allowance for Bad Debts account? OA. $3,900 O B. $3,290 OC. $2,680 O D. $1,590 CISTERS
Crazy Jane Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $160,000 51,430 Cr. $2,850 843,300 Prepare the journal entry to record bad debt expense assuming Crane Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,510 debit balance. (a) Crazy Jane Company would prepare the following adjusting journal entry: The following account would be debited: type your answer... and (b) Crazy Jane Company would prepare the following adjusting journal entry: The following account would be debited: type your answer... type your answer... and type your answer... would be credited for: $ type your answer... would be credited for $ type your answer...
Walgreens provided the following information before any year end adjusments: Net credit sales are $120,000 Historical percentage of credit losses is 2% Allowance for doubtful accounts has a credit balance of $300. Accounts receivables ending balance is $47,000. What is the estimated bad debt expense using the percentage of credit sales method? A. $2,400 B. $2,100 C. $940 D. $2,700

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