Crazy Jane Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $160,000 51,430 Cr. $2,850 843,300 Prepare the journal entry to record bad debt expense assuming Crane Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,510 debit balance. (a) Crazy Jane Company would prepare the following adjusting journal entry: The following account would be debited: type your answer... and type your answer... (b) Crazy Jane Company would prepare the following adjusting journal entry: The following account would be debited: type your answer... and type your answer... would be credited for: $ type your answer... would be credited for $ type your answer...

Crazy Jane Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $160,000 51,430 Cr. $2,850 843,300 Prepare the journal entry to record bad debt expense assuming Crane Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,510 debit balance. (a) Crazy Jane Company would prepare the following adjusting journal entry: The following account would be debited: type your answer... and type your answer... (b) Crazy Jane Company would prepare the following adjusting journal entry: The following account would be debited: type your answer... and type your answer... would be credited for: $ type your answer... would be credited for $ type your answer...

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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2. Al Harith Company reports the following financial information before adjustments: RO Account Receivables Allowance for Doubtful Accounts Sales (all on credit) Cash Sales Sales Return and Allowances 250,000 5000 800,000 100,000 100,000 Prepare the journal entry to record Bad Debt Expense assuming Al Harith Company: estimates bad debts at 2% of net sales estimates 5% of account receivables
Wolfe, Inc. had credit sales for the period of $146,000. The balance in Allowance for Doubtful Accounts is a debit of $663. If Wolfe estimates that 5% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts? O A. Debit Bad Debt Expense, $7,300; credit Allowance for Uncollectible Accounts, $7,300. O B. No entry is required. O C. Debit Bad Debt Expense, $6.637; credit Allowance for Uncollectible Accounts, $6.637. O D. Debit Bad Debt Expense, $7,963; credit Allowance for Uncollectible Accounts, S7,963.
View Policies Current Attempt in Progress Culver Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $168,900 50,440 (b) No. Account Titles and Explanation (a) Cr. Prepare the journal entry to record bad debt expense assuming Culver Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,550 debit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) $3,200 849,300 Debit NID Credit
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,200. During the year, Abbott wrote off accounts receivable totaling $2,300 and made credit sales of $96,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $5,120 Ob. $1,920 Oc. $3,200 Od. $2,820 Previous Next
The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts 1,330 Net Sales $443,000 Debit Credit 2,180,000 Credit All sales are made on credit. Based on past experience, the company estimates 4.0% of ending accounts receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Debit Bad Debts Expense $18,720; credit Allowance for Doubtful Accounts $18,720. Debit Bad Debts Expense $19,050; credit Allowance for Doubtful Accounts $19,050. Debit Bad Debts Expense $17,720; credit Allowance for Doubtful Accounts $17,720. Debit Bad Debts Expense $16,390; credit Allowance for Doubtful Accounts $16,390. O Debit Bad Debts Expense $8,720; credit Allowance for Doubtful Accounts $8,720.
An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $5,664. If Allowance for Doubtful Accounts has a $941 debit balance, the adjustment to record the bad debt expense for the period will require a Select the correct answer. debit to Bad Debt Expense for $941. debit to Bad Debt Expense for $6,605. credit to Allowance for Doubtful Accounts for $5,664. debit to Bad Debt Expense for $5,664.
Vaughn Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $141,000 Allowance for Doubtful Accounts $3,120 Sales Revenue (all on credit) 835,400 Sales Returns and Allowances 53,680 Prepare the journal entry to record bad debt expense assuming Vaughn Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,350 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
The trial balance before adjustment of Buffalo Inc. shows the following balances. Dr. Cr. Accounts Receivable $95,400 Allowance for Doubtful Accounts 1,855 Sales Revenue (all on credit) $720,800 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,805 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)
a. Calculate the total estimated bad debts based on the above information.
Whispering SA reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue No. Account Titles and Explanation (a) Dr. €140,800 (b) Prepare the journal entry to record bad debt expense assuming Whispering estimates bad debts at (a) 4% of accounts receivable assuming Allowance for Doubtful Accounts has the balance given in the problem data, and (b) 4% of accounts receivable assuming Allowance for Doubtful Accounts has a € 1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Cr. €2,480 816,800 Debit Credit
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 4% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,500. During the year, Abbott wrote-off accounts receivable totaling $2,800 and made credit sales of $99,000. After the adjusting entry, the December 31 balance in Bad Debt Expense would be Select the correct answer. $3,500 $7,460 $3,960 $4,660
es Mazie Supply Company uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $85,000, and it estimates that 4% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,445 credit balance before the adjustment. (b) a $425 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,445 credit balance before the adjustment. Note: Enter debits before credits. Transaction (a) Record entry General Journal Clear entry Debit Credit View general journal 7