Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accounts recelvable method. On December 31, It has outstanding accounts recelvable of $60,500, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,029 credit balance before the adjustment. (b) a $303 debit balance before the adjustment.

Exercise 7-7 Percent of accounts receivable method LO P3 Mazie Supply Co. uses the percent of accounts recelvable method. On December 31, It has outstanding accounts recelvable of $60,500, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,029 credit balance before the adjustment. (b) a $303 debit balance before the adjustment.

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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Exercise 8-5 Waterway Industries has accounts receivable of $98,600 at March 31, 2017. Credit terms are 2/10, n/30. At March 31, 2017, there is a $2,227 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company’s estimates of bad debts are as shown below. Balance, March 31 Estimated PercentageUncollectible Age of Accounts 2017 2016 Current $68,400 $69,990 2 % 1–30 days past due 13,700 7,880 5 31–90 days past due 9,700 2,400 28 Over 90 days past due 6,800 1,100 49 $98,600 $81,370 Determine the total estimated uncollectibles. The total estimated uncollectibles $ Prepare the adjusting entry at March 31, 2017, to record bad debt expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Question 12 of 20 View Policies Current Attempt in Progress During its first year of operations, Pharoah Company had credit sales of $3,124,900; $652,500 remained uncollected at year-end. The credit manager estimates that $36,100 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 2 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. *** Submit Answer