Jars Plus recorded $862,430 in credit sales for the year and $496,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,670, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places. A. Dec. 31 Bad Debt Expense 19,835.89 Allowance for Doubtful Accounts 19,835.89 V To record bad debt, income statement method B. Dec. 31 Bad Debt Expense 14,880 Allowance for Doubtful Accounts 14,880 To record bad debt, balance sheet method C. Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt, income statement method Dec. 31 Bad Debt Expense -v 25,100 Allowance for Doubtful Accounts 25,100 To record bad debt balance sheet method previous debit balance
Jars Plus recorded $862,430 in credit sales for the year and $496,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,670, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places. A. Dec. 31 Bad Debt Expense 19,835.89 Allowance for Doubtful Accounts 19,835.89 V To record bad debt, income statement method B. Dec. 31 Bad Debt Expense 14,880 Allowance for Doubtful Accounts 14,880 To record bad debt, balance sheet method C. Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt, income statement method Dec. 31 Bad Debt Expense -v 25,100 Allowance for Doubtful Accounts 25,100 To record bad debt balance sheet method previous debit balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jars Plus recorded $862,430 in credit sales for the year and $496,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.0% for the balance sheet method.
A. Record the year-end adjusting entry for 2018 bad debt using the income statement method.
B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method.
C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad
debt using the income statement method, and then the entry using the balance sheet method.
D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,670, record the year-end entry for bad
debt using the income statement method, and then the entry using the balance sheet method.
If an amount box does not require an entry, leave it blank. If required, round final answers to two decimal places.
A. Dec. 31 Bad Debt Expense
19,835.89
Allowance for Doubtful Accounts
19,835.89
To record bad debt, income statement method
B. Dec. 31 Bad Debt Expense
14,880
Allowance for Doubtful Accounts
14,880
To record bad debt, balance sheet method
C. Dec. 31 Bad Debt Expense
Allowance for Doubtful Accounts
To record bad debt, income statement method
Dec. 31 Bad Debt Expense
25,100
Allowance for Doubtful Accounts
25,100
To record bad debt, balance sheet method, previous debit balance
D. Dec. 31 Bad Debt Expense
Allowance for Doubtful Accounts
To record bad debt, income statement method
Dec. 31 Bad Debt Expense
9,210
Allowance for Doubtful Accounts
9,210
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