In-class activity 5- March 6, 2024Name(a)Balance at January 1, 2025..Provision for doubtful accounts....Recovery in 2025 of bad debts written off previously.Sub-totalPEECAN CORPORATIONAnalysis of Changes in theAllowance for Doubtful AccountsFor the Year Ended December 31, 2025Deduct write-offs for 2025Balance at December 31, 2025, before changein accounting estimate..Increase due to change in accounting estimateduring 2025.......Balance at December 31, 2020, adjusted (Schedule 1)Schedule 1Computation of Allowance for Doubtful Accountsat December 31, 2025AgingCategoryNov.-Dec.July-Oct.Jan.-JunePrior to 1/1/25Balance$760,000$1,100,000%1$86,000DoubtfulAccounts$7,600(b) The journal entry to record the additional provision for bad debts as aresult of the change in accounting estimate is as follows:(c) Accounts Receivable, net of Allowance of Doubtful Accounts(d) Present T-accounts for Accounts Receivable and Allowance for Doubtful Accounts for 2025.

Part b) Journal entry to record allowance for Doubtful Debt for FY 2025 Debit : Bad Debt Expense $…

Answered: In-class activity 5- March 6, 2024 Name…

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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Problem 5 CPA Co. decided on January 1, 2020 to review its accounting practices. This is due to changing economic conditions and to make its financial statements more comparable to those of other companies in its industry. The following changes will be effective as of January 1, 2020: CPA Co. decided to change its allowance for bad debts from 2% to 4% of its outstanding accounts receivable. CPA Co.'s receivable balance at December 31,2020 was P690,000. Allowance for bad debts had a debit balance of P2,000 before adjustment. • CPA Co. decided to use the straight-line method of depreciation on its equipment instead of the sum-of-the years' digit method. It was also decided that this asset has 10 more years of useful life as of January 1, 2020. The equipment was purchased on January 1, 2010 at a cost of P1,100,000. On the acquisition date, it was estimated that the equipment would have a 15-year useful with no residual value. _5. How much is the bad debts expense for the year ended…
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Question Prepare the statement of profit or loss of Amazing Enterprise for the year ended 30 April 2021.
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Problem 7-4 (Bad Debt Reporting) From inception of operations to 31 December 2019, Fortner Corporation provided for uncollectible accounts receivable under the allowance method. The provisions were recorded based on analysis of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account; and no year-end adjustments to the allowance account were made. Fortner's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $130,000 at 1 January 2019. During 2019, credit sales totalled $9,000,000, the provision for doubtful accounts was determined to be $180,000, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Fortner installed a computer system in November 2019, and an aging of accounts receivable was prepared for the first time as of 31 December 2019. A summary of the…
View Policies Show Attempt History Current Attempt in Progress Sarasota Limited had net sales in 2023 of $2.3 million. At December 31, 2023, before adjusting entries, the balances in selected accounts were as follows: Accounts Receivable $236,900 debit; Allowance for Expected Credit Losses $2,300 credit. Assuming Sarasota has examined the aging of the accounts receivable and has determined the Allowance for Expected Credit Losses should have a balance of $29,700, prepare the December 31, 2023 journal entry to record the adjustment to Allowance for Expected Credit Losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media Debit Credit
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QUESTION 1 The schedule of aging accounts for a Company, at the end of the year 2020, appears below: Accounts Receivable $40,000 10,000 5,500 1,800 57,300 Estimate % of Bad Debts Current 1% 1-30 days overdue 31-60 days overdue More than 60 days overdue 5% 10% 20% Total The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $600, before the estimate was made. Required: Prepare the adjusting entry to record bad debts expense for 2020.

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