Circle Inc. had bad debt expense on its customer receivables as follows for 2016-2019, respectfully. Compute the trend percentages (whole number % changes, only) for these years assuming 2016 is the base year. 2016 $80,000 2017 $88,000 2018 $95,000 2019 $102,000

Circle Inc. had bad debt expense on its customer receivables as follows for 2016-2019, respectfully. Compute the trend percentages (whole number % changes, only) for these years assuming 2016 is the base year. 2016 $80,000 2017 $88,000 2018 $95,000 2019 $102,000

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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Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accounts Receivable At December 31, 2020, its annual year-end, the accounts of Sun Systems Inc. show the following. 1. Sales revenue for 2020, $468,000, of which one-sixth was on account. 2. Allowance for doubtful accounts, balance December 31, 2019, $2,340 credit. 3. Accounts receivable, balance December 31, 2020 (prior to any write-offs of uncollectible accounts during 2020), $46,930. 4. Uncollectible accounts to be written off, December 31, 2020, $2,730. 5. Aging schedule at December 31, 2020, showing the following breakdown of total accounts receivable, excluding amounts to be written off. Status Amount Not past due Remainder Past due 1–60 days $10,400 Past due over 60 days 7,800 Required a. Prepare the 2020 entry to write off the uncollectible accounts. b. Prepare the 2020 adjusting entry to record bad debt expense for each of the following separate assumptions concerning expected bad…
Zebra Company reported the following for 2022: Credit sales = $419884 Accounts Receivable = $16376 Allowance for Doubtful Accounts = $291 (credit balance) Bad Debt is estimated at 0.31 of 1% of sales After the adjusting entry is recorded, what is the value of Allowance for Doubtful Accounts? ROUND TO THE NEAREST DOLLAR
Teal Mountain Distributors, Inc. had net sales in 2017 of $2,450,000. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $420,000 debit, and Allowance for Doubtful Accounts $2,700 debit. If Teal Mountain estimates that 5% of its receivables will prove to be uncollectible, prepare the December 31, 2017, journal entry to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
Aerospace Electronics reports $570,000 in credit sales for 2018 and $634,500 in 2019. They have a $501,000 accounts receivable balance at the end of 2018, and $602,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 6% during 2019. A. Determine the bad debt estimation for 2018. $ B. Determine the bad debt estimation for 2019. C. How does the new total bad debt expense affect net income and net accounts receivable? Bad debt expense is lower, net income is higher, and net re а. are higher. Bad debt expense is lower, net income is higher, and net re b. are lower. Bad debt expense is higher, net income is lower, and net re С. are higher. Bad debt expense is higher, net income is lower, and net re d. are lower.
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Angelo’s Outlet used to report bad debt using the balance sheet method and is now switching to the income statement method. The percentage uncollectible will remain constant at 5%. Credit sales figures for 2019 were $866,000, and accounts receivable was $732,000. How much will Angelo’s Outlet report for 2019 bad debt estimation under the income statement method?
The following data concern Tech Corporation for the 2022 financial year. Credit sales during the year $2 400 000 Accounts receivable 30 June 2022 410 000 Allowance for bad debts 30 June 2022 55 000 Bad debt expense for the year 70 000 What amount will Tech Corporation show on its year-end balance sheet for the net realisable value of its accounts receivable? a. 410 000 b. $285 000 c. $340 000 d. $ 355 000
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