Information about Calbee Company is provided below:Ending Accounts Receivable: $100,000Total Credit Sales: $250,000Beginning Allowance for Doubtful Accounts: $15,000 (Debit)Total Write-offs: $5,000Calbee uses the percent of receivables method. It estimates that 3% of receivables will ultimately be uncollectible. What is theamount of Bad Debt Expense?23000

The allowance for doubtful accounts represents the accounts receivable that are not expected o be…

Answered: Information about Calbee Company is…

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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Net credit sales $831, 400 Account Receivable 222,850 Allowance for Doubtful Account 0. Do the following: Compute bad debt estimation using the income method, where the percentage uncollectible is 5%. Prepare the journal entry for the income statement method bad debt estimation. Compute bad debt estimation using the balance sheet method of percentage of receivables, where the percentage uncollectible is 9%. Prepare the journal entry for the balance sheet method bad debt estimation.
Louise Company has the following balances: Net Credit Sales $ 1,200,000 Accounts Receivable 240,000 Allowance for Doubtful Accounts (beginning balance) 3,000 Uncollectible accounts are estimated to be 6% of the receivables balance. Given this information, what is the company’s estimated bad debt expense for the year?
d) The trial balance before adjustment of Braxton Inc. shows the following balances. DEBIT CREDIT Accounts receivable $170,000 Allowance for doubtful accounts 1,750 Net Credit Sales $1,280,000 Journalize the Bad Debt Expenses assuming: i. 1.2% of Sales will be uncollectible ii. iii. 9% of gross accounts receivable will be uncollectible the same as part ii above instead there is a credit balance in Allowance for doubtful accounts of $1,700 and collected $2,100 from an account previously written off.
I NEED HELP FINDING THE DOLLAR AMOUNT Vaughn Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 331,400 104,000 70,800 65,400 49,100 $42,100 % uncollectible 2% 5% 6% 9% 21% Estimated Bad debts $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount $enter a dollar amount
7 Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable. The company has the following data for the year: Allowance for Bad Debts, 12/31/19 - credit balance Sales including cash sales Accounts written off as uncollectible during 2020 Cash Sales P 28,000 5,000,000 23,000 500,000 3,500,000 270,000 5,000 Collections from credit sales Accounts Receivable at 1/1/20 Uncollectible accounts recovery during 2020 What is Nissan's bad debts expense that shall be presented in its 2020 statement of financial performance?
(Recording Bad Debts) Duncan Company reports the following financial information before adjustments. Debit Credit Accounts Receivable $90,000 Allowance for Doubtful Accounts $1,750 Sales Revenue (all on credit) $680,000 Prepare the journal entry to record bad debt expense assuming Duncan Company estimates bad debts at (a) 1% of net sales and (b) 5% of accounts receivable.
Information related to Tesco Company for 2020 is summarized below. Total credit sales $1,200,000 Accounts receivable at December 31 370,000 Bad debts written off 25,15 (a) Assume that Tesco Company decides to estimate its bad debts expense to be 2% of credit sales. What amount of bad debts expense will Tesco record if Allowance for Doubtful Accounts has a credit balance of $3,000?
The following balances were gathered from WAP Company's trial balance: Credit sales 2,000,000 Accounts receivable, beg 200,000 Accounts receivable, end 1,200,000 Beginning balance of the allowance for doubtful accounts is P10,000. The company's policy is to recognize doubtful accounts as 2% of credit sales. Determine the amount of bad debt expense that should be recognized for the period.
Assume Simple Company had credit sales of $243,000 and cost of goods sold of $143,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $180. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
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Based on the information: Credit sales - P 172,000 credit Collections on accounts receivable during the year - P170,000 credit Cash sales - 810,000 credit Unadjusted balance in Allowance for doubtful accounts - 50 debit Sales returns and allowances for credit sales - 4,000 debit Accounts receivable, beginning of the year - 14,000 debit If bad debts are estimated to be 1 1/2% of ending accounts receivable, in the adjusting entry to recognize bad debts, you would debit bad debt expense for: a. P 230 b. P 180 c. P 130 d. P 190
HIRDT CO. USES THE PERCENTAGE-OF- RECEIVABLES BASIS TO RECORD BAD DEBT EXPENSE AND CONCLUDES THAT 3% OF ACCOUNTS RECEIVABLE WILL BECOME UNCOLLECTIBLE. ACCOUNTS RECEIVABLE ARE $401,100 AT THE END OF THE YEAR, AND THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAS A CREDIT BALANCE OF $3,110. IF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAD A DEBIT BALANCE OF $890 INSTEAD OF A CREDIT BALANCE OF $3,110, PREPARE THE ADJUSTING JOURNAL ENTRY FOR BAD DEBT EXPENSE.

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