InstructionsChart of AccountsGeneral JournalBradford Company's accounting records on December 31, 2019, provide the followingCHART OF ACCOUNTS1a. Prepare the journal entries to record the estimate of Bradford's bad debt expense on December 31 assuming bad debts areinformation (prior to adjustment):estimated to be 2% of net credit sales.Bradford CompanyGeneral LedgerCash sales$ 93,100General Journal InstructionsNet credit sales283,600ASSETSREVENUETotal sales (net)$376,700111 Cash411 Sales RevenuePAGE 1121 Accounts ReceivableAccounts receivable131,300GENERAL JOURNAL122 Allowance for DoubtfulEXPENSESAllowance for doubtful accounts2,150(credit)Accounts500 Cost of Goods SoldDATEACCOUNT TITLEPOST. REF.DEBITCREDIT1141 Inventory511 Insurance ExpenseRequired:152 Prepaid Insurance512 Utilities Expense21. Prepare the journal entries to record the estimate of Bradford's bad debt expense for181 Equipment521 Salaries Expense2019 assuming:198 Accumulated Depreciation532 Bad Debt ExpenseA. Bad debts are estimated to be 2% of net credit sales.540 Interest Expense16. Prepare the journal entries to record the estimate of Bradford's bad debt expense on December 31 assuming bad debts areB. Bad debts are estimated to be 5% of gross accounts receivable.LIABILITIES541 Depreciation Expenseestimated to be 5% of gross accounts receivable.2. Next Level Discuss the advantages and disadvantages of the balance sheet and211 Accounts Payable559 Miscellaneousincome statement approaches to estimating bad debt.231 Salaries PayableExpensesGeneral Journal Instructions250 Unearned Revenue910 Income Tax Expense261 Income Taxes PayablePAGE 1GENERAL JOURNALEQUITY311 Common StockDATEACCOUNT TITLEPOST. REF.DEBITCREDIT331 Retained Earnings2Next Level2. Discuss the advantages and disadvantages of the balance sheet and income statement approaches to estimating bad debt.The main advantage of the income statement approach is that it is relatively straightforward. However, since this approach does not consider theit could result in accounts receivable balances that are not properly valued at their net realizable value.The main advantage of the balance sheet approach is that it gives the best valuation of accounts receivable (at its net realizable value). However, it does not do as good a job with

Bad debt expenses are those expenses which are related with those accounts receivables on which it…

Answered: Instructions X Cha Bradford Company's…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 251,000 Accounts Receivable, December 31, 2021 46,000 Allowance for Uncollectible Accounts, December 31, 2021 1,100 (Credit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 12% of receivables will not be collected. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2023, of $2,200 Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. December 31, 2023 Accounts Receivable $148,000 43,000 10,000 2,400 View transaction list Journal entry worksheet < 1 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date December 31, 3332 General Journal Expected Percentage Debit Uncollectible 1% 4% 10% 60% Credit ☆
The following information is available for Sheridan Company: Allowance for Expected Credit Losses at December 31, 2023 Credit Sales during 2024 Accounts Receivable deemed worthless and written off during 2024 $7980 O $4788 $3762 $8550 O $84360 307800 3192 As a result of a review and aging of Accounts Receivable in early January 2025, it was determined that an Allowance for Expected Credit Losses balance of $8550 is required at December 31, 2024. What amount should Sheridan record as loss on impairment for calendar 2024?
Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accounts Receivable At December 31, 2020, its annual year-end, the accounts of Sun Systems Inc. show the following. 1. Sales revenue for 2020, $468,000, of which one-sixth was on account. 2. Allowance for doubtful accounts, balance December 31, 2019, $2,340 credit. 3. Accounts receivable, balance December 31, 2020 (prior to any write-offs of uncollectible accounts during 2020), $46,930. 4. Uncollectible accounts to be written off, December 31, 2020, $2,730. 5. Aging schedule at December 31, 2020, showing the following breakdown of total accounts receivable, excluding amounts to be written off. Status Amount Not past due Remainder Past due 1–60 days $10,400 Past due over 60 days 7,800 Required a. Prepare the 2020 entry to write off the uncollectible accounts. b. Prepare the 2020 adjusting entry to record bad debt expense for each of the following separate assumptions concerning expected bad…
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17.The following information is provided: Unadjusted balance in Allowance for Doubtful Accounts $1,100 (debit)Accounts Receivable, December 31 245,500Sales Returns and Allowances 5,500Sales 850,000Sales Discounts 15,000 Required:1. Prepare the adjusting entry if bad debts are estimated to be 1.5% of net sales.2. Compute the amount of the adjusting entry if bad debts are estimated to be 3% of ending accounts receivable.
I NEED HELP FEELING IN THE BLANKS Information related to Novak Company for 2020 is summarized below. Total credit sales $2,575,000 Accounts receivable at December 31 853,000 Bad debts written off 34,900 (a)What amount of bad debt expense will Novak Company report if it uses the direct write-off method of accounting for bad debts? $________________ (b)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts credit balance of $3,700? $___________________ (c)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts debit balance of $3,700? $__________________
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Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 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. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.
Suzuki Supply reports the following amounts at the end of 2024 (before adjustment). Credit Sales for 2024 Accounts Receivable, December 31, 2024 Allowance for Uncollectible Accounts, December 31, 2024 $248,000 43,000 1,000 (debit) Required: 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. Suzuki estimates 10% of receivables will not be collected. 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 2% of credit sales will not be collected. 3. Calculate the effect on net income (before taxes) and total assets in 2024 for each method.
a) Prepare all journal entries to record the activity for the items above for 2020 b) Prepare any journal entries required at December 31, 2020 to record bad debt expense for the year
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