Current Attempt in Progress Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,400 0.96 Between 16 and 30 days 116,600 0.90 Between 31 and 45 days 85,600 0.86 Between 46 and 60 days 41,900 0.79 Between 61 and 75 days 18,600 0.53 Over 75 days (to be written off) 15,600 0.00 (a) Your answer is incorrect. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts eTextbook and Media Save for Later | Attempts: 2 of 3 used Submit Answer

Current Attempt in Progress Nash Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Nash's Accounts Receivable account was $592,700 and Allowance for Doubtful Accounts had a credit balance of $40,680. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,400 0.96 Between 16 and 30 days 116,600 0.90 Between 31 and 45 days 85,600 0.86 Between 46 and 60 days 41,900 0.79 Between 61 and 75 days 18,600 0.53 Over 75 days (to be written off) 15,600 0.00 (a) Your answer is incorrect. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts eTextbook and Media Save for Later | Attempts: 2 of 3 used Submit Answer

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
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.
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.
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.
Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 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 credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: A. Journalize the transactions under the direct write-off method. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: C. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
The following accounts receivable information pertains to Luxury Cruises. A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt, taking this into consideration. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $206,770; record the year-end entry for bad debt, taking this into consideration. E. On January 24, 2019, Luxury Cruises identifies Landon Walkers account as uncollectible in the amount of $4,650. Record the entry for identification.
Sheffield Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Sheffield's Accounts Receivable account was $593,900 and Allowance for Doubtful Accounts had a credit balance of $40,480. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days $314,700 0.98 Between 16 and 30 days 118,900 0.90 Between 31 and 45 days 82,800 0.86 Between 46 and 60 days 43,900 0.79 Between 61 and 75 days 18,200 0.52 Over 75 days (to be written off) 15,400 0.00 (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts $
Manilow Corporation operates in an industry that has a highrate of bad debt. Before any year-end adjustments, the balance inManilow’s Accounts Receivable was $555,000 and Credit LossAllowance has a credit balance of $40,000. The year-end balancereported in the statement of financial position for Credit LossAllowance will be based on the aging schedule shown below.Day AccountOutstanding Amount Probability ofCollectionLess than 16 days 300,000 .9816-30 days 100,000 .9031-45 days 80,000 .8546-60 days 40,000 .8061-75 days 20,000 .55Over 75 days 15,000 .00Instruction:1.1 Compute expected credit loss for the year endingDecember 31 and the net realizable value of Manilow’saccounts receivable as of December 311.2 Prepare the journal entry to record the expected credit lossfor the year.
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What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for allowance for doubtful accounts S 49.324