Company began the year with $2,500 in accounts r e for doubtful accounts. At the end of the year, W = receivable and $50 in allowance for doubtful acca Es written off during the year totaled $7, and there written off. Credit sales totaled $17,000. What w ns from customers during the year? 843 850 857
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- Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.Bourne Company had a $150,000 beginning balance in Accounts Receivable and a $6,000 credit balance in the Allowance for Doubtful Accounts. During the year, credit sales were $ 600,000 and customers' accounts collected were $590, 000. Also, $4,000 in worthless accounts were written off. What was the net amount of receivables included in the current assets at the end of the year, before any provision was made for doubtful accounts? Select one: A. $120,000 B. $130, 000 C. $126,000 D. $154,000At the end of last year, the company had $654,000 in outstanding Accounts Receivable and a credit balance for Allowance for Doubtful Account of $32,400. During the current fiscal year, the company reported the following: 1. service revenue of $1,240,000 was billed to customers on account. 2. $1,250,000 was collected on customers’ accounts receivable. 3. The company wrote off $42,100 in accounts receivable. 4. The company collected $2,300 of previously written off accounts receivable. 5. The company uses the percentage of receivables to estimate bad debts expense. Based on experience, uncollectible accounts are expected to be 4% of accounts receivable. Instructions Write you answers by hand, scan your working papers and upload to the link on the main page of the Moodle website as a PDF file. Show any calculations. Printing the problem information is permitted but only for personal use during the exam. a) Prepare the journal entries to write-off of accounts receivable and the…
- At the end of last year, the company had $654,000 in outstanding Accounts Receivable and a credit balance for Allowance for Doubtful Account of $32,400. During the current fiscal year, the company reported the following: 1. service revenue of $1,240,000 was billed to customers on account. 2. $1,250,000 was collected on customers’ accounts receivable. 3. The company wrote off $42,100 in accounts receivable. 4. The company collected $2,300 of previously written off accounts receivable. 5. The company uses the percentage of receivables to estimate bad debts expense. Based on experience, uncollectible accounts are expected to be 4% of accounts receivable. a) prepare the journal entries to write-off of accounts receivable and the collection of the previously written off account during the year. b) prepare the current year-end adjusting entry to record bad debt expense. c) prepare the accounts receivable section of the balance sheet for the current year end in classified format.At the end of the prior year, Company reported the following information: Accounts Receivable (Gross) were $125,000 and Allowance for Doubtful Accounts were $2,400. During the current year, sales on account were $150,000, collections on account were $165,000, write-off of bad debts were $6,500, and the bad debt expense adjustment was $5,500. Show how the amounts related to Accounts Receivable would be reported on the balance sheet for the current year. Disregard income tax considerations.The beginning Accounts Receivable and Allowance for Doubtful Accounts balances of Justin Corporation are 500,000 and 50,000. Net credit sales totaled 4,500,000 during the year while collections amounted to 4,400,000. Bad debt expense for the year is 30,000. Included in the collections was a 10,000 account that was written off in the prior year and was recovered during the current year. What is the net realizable value of the Accounts Receivable as of the end of the year?
- Cortez Corporation uses the percentage of sales method to estimate its uncollectible accounts. Cortez has an ending balance of accounts receivable of $10,000. The allowance for doubtful accounts showed a balance of $1,000 in the beginning of the period. During the year, a total of $300 in accounts was written off as uncollectible. The company made credit sales of $100,000 in the current period. It estimates that 5% of sales will prove to be uncollectible. What is the ending balance of allowance for doubtful accounts of the company for the current period? Please don't provide answer in image format thank youAt the beginning of the year, Kullerud Manufacturing had a credit balance in its allowance for doubtful accounts of $6,161, and at the end of the year it was a credit balance of $31,425. During the year, Kullerud made credit sales of $890,000, collected receivables in the amount of $812,000, and recorded bad debt expense of $33,750. Compute the amount of receivables that Kullerud wrote off during the year.?Florence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a debit balance of $500,000 in the Accounts Receivable account with Credit Sales of $1,500,000 for the year. Management estimates 1.5% of credit sales will become uncollectible. What is the amount of estimated bad debts expense?
