Ava Company sets bad debt expense at 3 percent of its sales. Ava reported total sales of $ 74408. Before the adjustment Ava had $649 credit balance in its allowance for doubtful accounts. How much bad debt expense did Ava report on its income statement?

Ava Company sets bad debt expense at 3 percent of its sales. Ava reported total sales of $ 74408. Before the adjustment Ava had $649 credit balance in its allowance for doubtful accounts. How much bad debt expense did Ava report on its income statement?

Name: QUESTION 4Ava Company sets bad debt expense at 3 percent of its sales
Uploaded: 2022-11-23T13:49:29.000Z
Channel: Bartleby
Description: QUESTION 4Ava Company sets bad debt expense at 3 percent of its sales. Ava reported total sales of $ 74408. Before the adjustment, Avahad $649 credit balance in its allowance for doubtful accounts.How much bad debt expense did Ava report on its inco

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Highland Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $1,200,000 during the year.On December 31, the Accounts Receivable balance was $280,000, and the Allowance for Doubtful Accounts had a credit balance of $1,700 before adjustment.a. Determine the amount of the adjustment to record credit losses for the year.Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Assets = Liabilities + Equity Revenues - Expenses = Net Income b. Show how the Accounts Receivable account and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet.Note: Do not use negative signs with any of your answers. Balance Sheet (excerpt) Current assets Cash $ XX,XXX Inventory XXX,XXX Other current assets X,XXX Total Current Assets…
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
GG Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700,000 and credit sales are $2,500,000. Management estimates that 1% is the sales percentage to use. What adjusting entry will Company make to record the bad debts expense? Select one: a. The answer does not exist b. Bad Debt Expense .25,000 Allowance for Doubtful Accounts 25,000 С. Bad Debt Expense .32,000 Allowance for Doubtful Accounts 32,000 d. Bad Debt Expense 25,000 Accounts Receivable 25,000 е. Bad Debt Expense .32,000 Accounts Receivable 32,000
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.
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?
2. D’Costa Company uses the allowance method of handling credit losses. It estimates losses at 2% of credit sales, which were $1,800,000 this year. At December 31 of this year, the Accounts Receivable balance is $270,000, and the Allowance for Doubtful Accounts has a $3,600 credit balance before adjustment. a. Give the adjusting entry to record bad debts expense for this year. b. What net amount of accounts receivable would appear on the December 31 balance sheet this year? c. Assume that D’Costa Company uses aged accounts receivable as a basis of estimating credit losses, instead of a percent of credit sales. If the firm estimates that $22,800 of the accounts will prove uncollectible, what adjusting entry would D’Costa Company make to record the bad debts expense for this year?
FDN Trading reported sales of P254,000 for the year. Prior to adjustment, Allowance for Doubtful Accounts has a balance of P534. Based on an aging of accounts receivable, the firm estimated its losses from uncollectible accounts to be P7,226. In the adjusting entry to record the estimated losses for doubtful accounts, how much should be debited to Doubtful Accounts Expense?
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
I can not figure out the last part of this question.
Lewis Company uses the allowance method of handling credit losses. It estimates losses at 1% of credit sales, which were $900,000 during the year. On December 31, the Accounts Receivable balance was $150,000, and the Allowance for Doubtful Accounts had a credit balance of $10,200 before adjustment. a. Determine the amount of the adjustment to record credit losses for the year. Note: Use negative signs with answers, when appropriate. Balance Sheet Income Statement Stockholders' Assets Liabilities Equity Revenues Expenses = Net Income b. Show how the Accounts Receivable account and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. Note: Do not use negative signs with any of your answers. Balance Sheet (excerpt) Current assets Cash $ XX,XXX Inventory XXX,XXX Other current assets X,XXX Total Current Assets $ XXX,XXX
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...