Data below relates to an organization's credit customers for the year ended 2006 December 31: $ Balance b/d at 2006 January 01 350 000 Provision for Bad Debts at 2006 January 01 17 500 Decrease inProvision for Doubtful Debts during 2006 8 000 Discounts 13 000 Returns 25 000 Sales 900 000 Receipts from customers 880 000 Refunds made to customers 7 000 Contra with creditors' control account120 000 What was the closing balance of the Debtors' Control A/C at the end of the period?

The objective of the question is to calculate the closing balance of the Debtors' Control Account at…

Answered: Data below relates to an organization's…

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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On December 31, 2024, a company had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $47,500 and $2,000, respectively. During 2025, the company wrote off $700 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $4,800 at December 31, 2025, Bad debt expense for 2025 would be: Multiple Choice $3,500 $700 $7,500 $3.000 G Ⓒ 100 Ⓒ HI L
a. Calculate the total estimated bad debts based on the above information.
4. At the end of its first year of operations, December 31, 2025, Swifty Inc. reported the following information. Accounts receivable, net of allowance for doubtful accounts Customer accounts written off as uncollectible during 2025 Bad debt expense for 2025 What should be the balance in accounts receivable at December 31, 2025, before subtracting the allowance for doubtful accounts? Net credit sales Accounts receivable, before deducting allowance for doubtful accounts Allowance for doubtful accounts Accounts receivable 5. The following accounts were taken from Nash Inc.'s trial balance at December 31, 2025. Debit $13,960 333,200 $872,800 O Search 26,370 Credit 89,470 $804,200 $ LOCO DELL g
The following information is from the 2025 records of R & S Commercial Plumbing Company: Accounts receivable, December 31, 2025 $42,000 (debit) Allowance for Bad Debts, December 31, 2025 prior to adjustment 1,500 (debit) Net credit sales for 2025 180,000 Accounts written off as uncollectible during 2025 18,000 Cash sales during 2025 28,000 Bad debts expense is estimated by the percent−of−sales method. Management estimates that 4% of net credit sales will be uncollectible. Calculate the amount of bad debts expense for 2025. A. $5,520 B. $5,700 C. $7,200 D. $8,320
A recent report for UPS contained the following data: (in thousands) Accounts receivable Less: Allowance for bad debts Net accounts receivable Bad debt expense Current year $1,034,608 36,800 $ 997,808 $55,147 Previous year $ 805,495 38,225 S 767,270 $31,388 Required: 1. Prepare the journal entry for the amount of accounts receivable that were actually written off during the current year. 2. Prepare the journal entry to record the bad debt expense for the current year 3. What is the purpose of the account "Allowance for doubtful accounts"? Although the normal balance of this account is a credit balance, it sometimes has a debit balance. Briefly explain how this can happen.
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that 1.5% of sales will be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?
Calculate the total estimated uncollectibles based on the below information. Accounts receivable % uncollectible Estimated Bad debts Total $307,100 $ 0-30 $100,200 1% $ 31-60 $65,900 4% Number of Days Outstanding $ 61-90 $59,800 5% 91-120 $44,600 8% $ Over 120 $36.600 20%
What is the amount of write offs during Year 2 based on the following financial information? Balance Sheet Excerpts As At Year Year 2 Year 1 End(000s) Gross Accts Receivable Allowance for Doubtful Accounts Net Accts Receivable Provision for Bad Debt O $15 $20 $37 $52 $456 $20 $437 $25 $321 $32 $294 $40
The following accounts receivable information pertains to Marshall Inc. Past-Due Accounts Percentage Category Receivable Total Uncollectible 0-30 days $84,550 8% 31-90 days 37,230 16% Over 90 days 23,170 37% Determine the estimated uncollectible bad debt from Marshall Inc. using the balance sheet aging of receivables method. Round final answer to two decimal places. Record the year-end adjusting journal entry for bad debt. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. Dec. 31
I NEED HELP FEELING IN THE BLANKS Information related to Novak Company for 2020 is summarized below. Total credit sales $2,575,000 Accounts receivable at December 31 853,000 Bad debts written off 34,900 (a)What amount of bad debt expense will Novak Company report if it uses the direct write-off method of accounting for bad debts? $________________ (b)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts credit balance of $3,700? $___________________ (c)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts debit balance of $3,700? $__________________
K Blended Corporation uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,000. During the year Blended wrote off uncollectible receivables of $2,200. Blended recorded Bad Debts Expense of $3,300. What is Blended's year-end balance in Allowance for Bad Debts? OA. $5,500 OB. $1,100 C. $2,100 OD. $4,300 1
On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts asbelow. Ignore GST. On 01/06 Accounts Receivable = 849555 Allowance for doubtful debt =12100 During June, the following transactions occurred:1. Revenue earned on credit, $1,195,000.2. Sales returns, $24,100.3. Accounts receivable collected, $1,400,000.4. Accounts written off as uncollectable, $15,851.Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance forDoubtful Debts account should have a credit balance of $13,500 on the balance sheet as at 30 June.Ignore GST.Required:(a) Prepare general journal entries to record the four transactions and to adjust the Allowance forDoubtful Debts account.(b) Show how accounts receivable and the allowance for doubtful debts would appear on the balancesheet at 30 June. (c) On 29 June, Kim Ltd, whose $2,400 account had been written off as uncollectable in June, paid itsaccount in full. Prepare journal entries to record…

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