Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end: DebitsCreditsAccounts Receivable$ 2,900 Allowance for Doubtful Accounts $ 20Sales (assume all on credit) 43,000Required:Prepare the adjusting journal entry required for the year. Assume Chipman uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year and no Bad Debt Expense has been recorded yet.Prepare the adjusting journal entry required for the year. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible.Assume instead that Chipman uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense. Assume Chipman's year-end unadjusted balance in Allowance for Doubtful Accounts was a debit balance of $40.If one of Chipman's main customers declared bankruptcy after year-end, what journal entry would be used to write off its $10 balance?

Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for you. To get the remaining sub-parts done, please re-post the complete question and specify the sub-parts required. Introduction: Journal entry is the primary step to record the transaction in the books of accounts. Bad debt expense is the amount that is uncollectible from the customers that are unable to pay the amount. Journal Entry: Account Titles and Explanations Debit ($) Credit ($) Bad debt expense (43000*1%*1/2) 215 Allowance for doubtful accounts 215 (To record bad debt expense for the year) Journal Entry: Account Titles and Explanations Debit ($) Credit ($) Bad debt expense (79-20) 59 Allowance for doubtful accounts 59 (To record bad debt expense for the year) Journal Entry: Account Titles and Explanations Debit ($) Credit ($) Bad debt expense (79+40) 119 Allowance for doubtful accounts 119 (To record bad debt expense for the year)

Answered: Chipman Sofware recently reported the…

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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Chipman Sofware recently reported the following amounts in its unadjusted trial balance at its year-end:

	Debits	Credits
Accounts Receivable	$ 2,900
Allowance for Doubtful Accounts		$ 20
Sales (assume all on credit)		43,000

Required:

Prepare the adjusting journal entry required for the year. Assume Chipman uses 1/2 of 1 percent of sales to estimate its Bad Debt Expense for the year and no Bad Debt Expense has been recorded yet.
Prepare the adjusting journal entry required for the year. Assume instead that Chipman uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible.
Assume instead that Chipman uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible. Prepare the year-end adjusting journal entry for recording Bad Debt Expense. Assume Chipman's year-end unadjusted balance in Allowance for Doubtful Accounts was a debit balance of $40.
If one of Chipman's main customers declared bankruptcy after year-end, what journal entry would be used to write off its $10 balance?

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