Delta Corp. reported the following after year-end adjustments: Allowance for doubtful accounts was $8,000 at the beginning of the year and $18,000 at the end of the year. • Accounts written off during the year totaled $12,000. What was the bad debt expense for the year? Options: a) $18,000 b) $22,000 c) $12,000 d) $10,000

Delta Corp. reported the following after year-end adjustments: Allowance for doubtful accounts was $8,000 at the beginning of the year and $18,000 at the end of the year. • Accounts written off during the year totaled $12,000. What was the bad debt expense for the year? Options: a) $18,000 b) $22,000 c) $12,000 d) $10,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...

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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.
Accounts Receivable for Lisa Company at December 31, 2021 showed a balance of P1,500,000. The Allowance for Expected Credit Loss had a P45,000 debit balance before the year-end adjustment. Sales during the year totaled P16,400,000. An aging analysis which reflects lifetime expected credit loss shows that P75,000 of the outstanding accounts receivable are estimated to be uncollectible. How much is the amortized cost of the accounts receivable at December 31, 2021?
At year end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days past due. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year end adjustments. Using the aging of accounts receivable method, Chief estimates that 1% of current accounts and 10% of accounts over 30 days past due are uncollectible. what is the amount of bad debt expense?
Wellington Corp. has outstanding accounts receivable totaling $1.27 million as of December 31 and sales on credit during the year of $6.4 million. There is also a debit balance of $6,000 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
What would be the bas debt expense for the year
Rivera Corp. reported the following balances at the end of the year: Credit Sales: $320,000, Accounts Receivable: $85,000, Allowance for Uncollectible Accounts before adjustment: $1,500 debit. Rivera Corp. estimates that 6.5% of the credit sales are uncollectible. After the year-end adjustment, what is the Net Realizable Value of Accounts Receivable?
On December 31, Albertson Corporation had $65,000 in accounts receivable. The company estimates that 10% will be uncollectible. The present balance in Allowance for Uncollectible accounts is $3,000. What is the amount of bad debt expense that should be recorded for the year?
A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $30,000. An aging of accounts receivable at the end of the year indicates a required allowance of $38,000. If bad debt expense for the year was $40,000, what was the amount of bad debts written off during the year?
Ramsey Corp. reported the following balances at the end of the year: Credit Sales: $275,000 Accounts Receivable: $68,000 Allowance for Uncollectible Accounts before adjustment: $2,800 debit Ramsey Corp. estimates that 7.5% of the credit sales are uncollectible. After the year-end adjustment, what is the Net Realizable Value of Accounts Receivable?
Provide answer
At the end of the prior year, Company reported the following information: Accounts Receivable (Gross) were $125,000 and Allowance for Doubtful Accounts were $2,400. During the current year, sales on account were $150,000, collections on account were $165,000, write-off of bad debts were $6,500, and the bad debt expense adjustment was $5,500. Show how the amounts related to Accounts Receivable would be reported on the balance sheet for the current year. Disregard income tax considerations.
Determine the bad debt expense for year 2 based on the preceding facts.