Current Attempt in ProgressYour answer is incorrect.Blossom Inc.'s books revealed the following data at year end after all adjustments were made:Cash salesSales returns (on credit sales)Allowance for expected credit losses (credit balance)Credit salesAccounts receivable$822000O $198700.O $195000.Ⓒ$187000.O $183300390003700562000195000Blossom estimates the expected rate of credit losses to be 6%.The net realizable value or carrying value of accounts receivable after the credit losses is recognized is

Introduction:Allowances for credit losses on accounts receivable are specific provisions made by…

Current Attempt in Progress Your answer is incorrect. Blossom Inc.'s books revealed the following data at year end after all adjustments were made: Cash sales $822000 Sales returns (on credit sales) 39000 Allowance for expected credit losses (credit balance) 3700 Credit sales 562000 Accounts receivable 195000 Blossom estimates the expected rate of credit losses to be 6%. The net realizable value or carrying value of accounts receivable after the credit losses is recognized is O $198700. O $195000. Ⓒ$187000. O $183300.

Current Attempt in Progress Your answer is incorrect. Blossom Inc.'s books revealed the following data at year end after all adjustments were made: Cash sales $822000 Sales returns (on credit sales) 39000 Allowance for expected credit losses (credit balance) 3700 Credit sales 562000 Accounts receivable 195000 Blossom estimates the expected rate of credit losses to be 6%. The net realizable value or carrying value of accounts receivable after the credit losses is recognized is O $198700. O $195000. Ⓒ$187000. O $183300.

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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Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,214,000 and sales for the year total $13,760,000. a. The allowance account before adjustment has a credit balance of $16,400. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $52,500. c. The allowance account before adjustment has a debit balance of $9,100. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $9,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $75,500. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. а. $ b. $ c. $ d. $
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3. Grump Computer has credit sales of $400,000 in 2023 and a debit balance of $300 in the Allowance for Doubtful Accounts at year end. As of December 31, 2023, $120,000 of accounts receivable remain uncollected. The credit manager of Grump prepared an aging schedule of accounts receivable and estimates that $5,200 will prove to be uncollectible. On March 4, 2024 the credit manager authorizes a write-off of the $1,000 balance owed by A. Shard. Required (a) Prepare the adjusting entry to record the estimated uncollectible accounts expense in 2023. (b) Show the statement of financial position presentation of accounts receivable on December 31, 2023: (c) On March 4, before the write-off, assume the balance of Accounts Receivable account is $160,000 and the balance of Allowance for Doubtful Accounts is a credit of $4,000. Make the appropriate entry to record the write-off of the Shard account. Also show the statement of financial position presentation of accounts receivable before and after…
at the end of the current year accounts receivable has a balance of 625,000 allowance for doubtful accounts has a credit balance of 5,500 and sales for the year total 2,810,000 using the Aging method the balance of allowance for doubtful accounts is estimated as 29,700 Determine the amount of the adjusting entry for uncollectible accounts Determine the adjusted balances of accounts receivable, allowance for doubtful accounts, and bad debit expense. Determine the net realizable value of accounts receivable
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $960,000; Allowance for Doubtful Accounts has a credit balance of $8,500; and sales for the year total $4,320,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $34,900. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts 24 Bad Debt Expense c. Determine the net realizable value of accounts receivable.
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,236,000 and sales for the year total $14,010,000. a. The allowance account before adjustment has a credit balance of $16,700. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,400. c. The allowance account before adjustment has a debit balance of $7,200. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $7,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $59,800. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. а. $ b. $ С. $ d. $
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Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $660,000, Allowance for Doubtful Accounts has a credit balance of $6,000, and sales for the year total $2,.970,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $25.200. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.