Cash 12,250 Account Receivable 5,840 Notes Receivable Merchandise Inventory Building Account Payable Notes Payable KK Capital Allowance for Bad Debts Sales Revenue 3,000 20,180 30,000 8,720 5,000 40,000 100 95,000 Interest Revenue 200 Cost of Goods Sold Advertising Expense Salaries Expense General Expense Interest Expense Total 57,900 750 7,500 10,900 700 149,020 149,020 The data for adjustment to be made at year ended December 31, 2020 are: 1. Advertising Expense still prepaid Rs. 250 2. Accrued interest on notes receivable Rs. 212 3. Accrued interest on notes payable Rs. 150 4. Adjust the allowance for bad debts account to 5% of account receivable. 5. Depreciation on building for the year was Rs. 5,000

Cash 12,250 Account Receivable 5,840 Notes Receivable Merchandise Inventory Building Account Payable Notes Payable KK Capital Allowance for Bad Debts Sales Revenue 3,000 20,180 30,000 8,720 5,000 40,000 100 95,000 Interest Revenue 200 Cost of Goods Sold Advertising Expense Salaries Expense General Expense Interest Expense Total 57,900 750 7,500 10,900 700 149,020 149,020 The data for adjustment to be made at year ended December 31, 2020 are: 1. Advertising Expense still prepaid Rs. 250 2. Accrued interest on notes receivable Rs. 212 3. Accrued interest on notes payable Rs. 150 4. Adjust the allowance for bad debts account to 5% of account receivable. 5. Depreciation on building for the year was Rs. 5,000

Name: The following balances were taken from the General Ledger of Karachi
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Description: The following balances were taken from the General Ledger of Karachi Kings on December 31,Q1.2020.ParticularsDebitCreditCash12,250Account ReceivableNotes ReceivableMerchandise InventoryBuilding5,8403,00020,18030,000Account Payable8,720Notes Payableк

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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A trial balance before adjustment included the following: Accounts receivable Allowance for doubtful accounts Sales revenue Sales returns and allowances Debit $140,000 Credit $ 730 610,000 8,000 Estimates of uncollectible accounts are expected to be 5% of gross accounts receivable Use the information above to determine the following: 1) Net sales (on the income statement for the period)? 2) Accounts receivable (on the balance sheet at the end of the period)? 3) Bad debt expense? 4) Allowance for doubtful accounts had a credit balance of $5,500 at the beginning of the period. What amount of receivables was written off during the period? 5) If an additional $500 of receivables were written off during the period, what would bad debt expense have been?
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The allowance for uncollectible accounts currently has a credit balance of $200 the company's management estimates that 2.5% of net credit sales will be uncollectible net credit sales or 115, 000 what will be the balance of allowance for collectible accounts reported on the balance sheet once the adjustment is made assuming the percent of sales method is used
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