At the end of the current year, using the aging of accounts receivable method, management estimated that $23,750 of the accounts receivablebalance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance of $455. Whatadjusting entry should the company make at the end of the current year to record its estimated bad debts expense?Multiple ChoiceBad Debts Expense23,295Allowance for Doubtful Accounts23,295ОAccounts Receivable24,205Allowance for Doubtful Accounts24,205ОBad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts Expense23,75023,75023,750455 Bad Debts ExpenseAllowance for Doubtful Accounts23,29523,295Accounts Receivable24,205Allowance for Doubtful Accounts24,205Bad Debts Expense24,205Allowance for Doubtful Accounts24,205Bad Debts ExpenseAllowance for Doubtful AccountsAccounts ReceivableBad Debts ExpenseSales23,75023,75023,75045524,205

Step 1: Required allowance for bad debts If you use the aging of account receivables method, the 3%…

Answered: At the end of the current year, using…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 31RQSC

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Multiple Choice Bad Debts Expense Allowance for Doubtful Accounts Accounts Receivable Bad Debts Expense Sales 21,750 21,750 21,750 575 22,325 Bad Debts Expense 22,325 Allowance for Doubtful Accounts 22,325 Bad Debts Expense Allowance for Doubtful Accounts 21,175 21,175 Accounts Receivable 22,325 Allowance for Doubtful Accounts 22,325
Question 3 of 8 > -/2 View Policies Current Attempt in Progress What is the journal entry to record an uncollectible accounts receivable? Bad Debt Expense XXX Allowance for Doubtful Accounts XXX Bad Debt Expenses XXX Accounts Receivable XXX Accounts Receivable XXX Allowance for Doubtful Accounts XXX Allowance for Doubtful Accounts XXX Accounts Receivable XXX Save for Later Attempts: 0 of 1 used Submit Ans
QUESTION 10 Match the term on the left to the appropriate classification or description on the right. v Allowance for doubtful accounts A. Discounts for early payment of A/R, recorded as contra- revenues v Net accounts receivable B. An account that the firm credits when it records bad debt v Sales discounts expense v Write-offs of A/R C. Entries that reduce gross accounts receivable D. Gross accounts receivable minus Allowance for doubtful accounts
Question 7
8- Under allowance method,the journal entry to record uncollectible accounts expense is a. Dr. Allowance for Doubtful Accounts and Cr. Bad debts Expense b. Dr. Bad debts expense and Cr. Accounts Receivable c. Dr. Accounts Receivable and Cr. Bad debts expense d. Dr. Bad debts expense and Cr. Allowance for Doubtful Accounts
A B UD C |7. If bad debts expense is determined by estimating uncollectible accounts receivable, the entry to record the write-off of a specific uncollectible account would decrease: allowance for uncollectible accounts. net income. net book value of accounts receivable. bad debts expense. 8. If management intentionally underestimates bad debts expense, then net income is A overstated and assets are understated. B understated and assets are overstated C understated and assets are understated. D overstated and assets are overstated 9. Which of these items will not appear in the retained earnings statement? A Net Loss B Prior period adjustment, net of taxes с Cumulative effect on prior years of a change in accounting principles, net of tax D Dividends. E All of the above appear in the statement of retained earnings
The difference between accounts receivable and allowance for doubtful accounts is O a. the bad debt expense O b. the net realizable value of accounts receivable O c. the accounts receivable turnover O d. none of these choices
Which of the following entries would be the appropriate entry for writing off an uncollectible account receivable under the allowance method? O Dr. Bad Debt Expense Cr. Accounts Receivable O Dr. Sales Cr. Accounts Receivable O Dr. Accounts Receivable Cr. Bad Debt Expense O Dr. Allowance for Doubtful Accounts Cr. Accounts Receivable
Under allowance method, the journal entry to record uncollectible accounts expense is a. Dr. Bad debts expense & Cr. Accounts Receivable b. Dr. Allowance for Doubtful Accounts & Cr. Bad debts Expense c. Dr. Accounts Receivable & Cr. Bad debts expense d. Dr. Bad debts expense & Cr. Allowance for Doubtful Accounts
Which accounting concept supports recording bad debt expense before accounts are actually uncollectible? a) Full disclosure principle b) Materiality concept c) Going concern concept d) Matching principle
Match each of the following items with the appropriate definitions & don't give solution in image format..
15-The accounts receivable that cannot be collected because of their bankruptcy or another reason are termed as a. Bad customers b. Uncollectible accounts c. Collectible accounts d. Doubtful accounts

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