GIVEN: THE ESTIMATED PERCENTAGE OF UNCOLLECTIBLE ACCOUNTS RECEIVABLE FOR THE YEAR 2020 IS 5% THE GROSS RECEIVABLE IS 844,000 AND THE ALLOWANCE FOR BAD DEBTS IS 238,000 1. record the adjusting entries for the provision of the estimated uncollectible accounts receivable on dec 31,2020 if the 5% is applied to the gross receivable. 1. DR. =? 2.=? 3. CR. =? 4. =? 2. record the adjusting entries for the provision og the estimated uncollectible accounts receivable on dec 31, 2020 if the 7% is applied to gross receivable/ 5. DR. =? 6. =? 7. CR. =? 8. =? Choose from the following accounts for the correct account of adjusting entries: A. ACCUMULATED DEPRECIATION - EQUIPMENT B. ALLOWANCE FOR DOUBTFUL ACCOUNTS C. ACCOUNTS RECEIVABLE D. BAD DEBTS EXPENSE E. DEPRECIATION EXPENSE F. EQUIPMENT
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
GIVEN: THE ESTIMATED PERCENTAGE OF UNCOLLECTIBLE
1. record the
1. DR. =? 2.=?
3. CR. =? 4. =?
2. record the adjusting entries for the provision og the estimated uncollectible accounts receivable on dec 31, 2020 if the 7% is applied to gross receivable/
5. DR. =? 6. =?
7. CR. =? 8. =?
Choose from the following accounts for the correct account of adjusting entries:
A.
B. ALLOWANCE FOR DOUBTFUL ACCOUNTS
C. ACCOUNTS RECEIVABLE
D. BAD DEBTS EXPENSE
E. DEPRECIATION EXPENSE
F. EQUIPMENT
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