CVM Company had a total accounts receivable of 250,000 atDecember 31, 20x1. An aging analysis of the accountsreceivable and an estimate of possible credit losses are asfollows:ClassificationBalance% Credit loss1-60 days61-120 days175,0001%2%121-180 daysOver 180 daysB.What is the adjusting entry to record the estimated25,00010%25,00050%credit loss on December 31 20x1?Debit credit loss on receivables 157,500, Credit allowance for bad debts 157,500Credit credit loss on receivables 17.250, Debit allowance for bad debts 17.250Debit credit loss on receivables 16,750, Credit allowance for bad debts 16,750Debit credit loss on receivables 17,250, Credit allowance for bad debts 17.250

CVM Company had a total accounts receivable of 250,000 at December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1-60 days 61-120 days 121-180 days 175,000 1% 2% 25,000 10% Over 180 days 25,000 50% B.What is the adjusting entry to record the estimated credit loss on December 31 20x1? Debit credit loss on receivables 157,500; Credit allowance for bad debts 157,500 O Credit credit loss on receivables 17,250; Debit allowance for bad debts 17,250 O Debit credit loss on receivables 16,750, Credit allowance for bad debts 16,750 Debit credit loss on receivables 17,250, Credit allowance for bad debts 17. 250

CVM Company had a total accounts receivable of 250,000 at December 31, 20x1. An aging analysis of the accounts receivable and an estimate of possible credit losses are as follows: Classification Balance % Credit loss 1-60 days 61-120 days 121-180 days 175,000 1% 2% 25,000 10% Over 180 days 25,000 50% B.What is the adjusting entry to record the estimated credit loss on December 31 20x1? Debit credit loss on receivables 157,500; Credit allowance for bad debts 157,500 O Credit credit loss on receivables 17,250; Debit allowance for bad debts 17,250 O Debit credit loss on receivables 16,750, Credit allowance for bad debts 16,750 Debit credit loss on receivables 17,250, Credit allowance for bad debts 17. 250

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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