llowing account balances for 2018. Peter has a January to he December fiscal year: Accounts Receivable at Jan 1, 2018 (debit) Allowance for Doubtful Accounts at Jan 1, 2018 (credit) Total credit sales during 2018 Total collections on accounts receivable during 2018 Uncollectible accounts written off during 2018 $40,000 $6,000 $200,000 $180,000 $10,000 ABC Co. estimates that 2% of credit sales should be used to allow for bad debts. Assume that at March 14, 2021, it was determined that a balance of $7,000 needed to be written off from XYZ Co. as uncollectible. Provide the journal entry for the write-off.

llowing account balances for 2018. Peter has a January to he December fiscal year: Accounts Receivable at Jan 1, 2018 (debit) Allowance for Doubtful Accounts at Jan 1, 2018 (credit) Total credit sales during 2018 Total collections on accounts receivable during 2018 Uncollectible accounts written off during 2018 $40,000 $6,000 $200,000 $180,000 $10,000 ABC Co. estimates that 2% of credit sales should be used to allow for bad debts. Assume that at March 14, 2021, it was determined that a balance of $7,000 needed to be written off from XYZ Co. as uncollectible. Provide the journal entry for the write-off.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...

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Berry Farms has an accounts receivable balance at the end of 2018 of $425,650. The net credit sales for the year are $924,123. The balance at the end of 2017 was $378,550. What is the number of days sales in receivables ratio for 2018 (round all answers to two decimal places)?
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% 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 $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
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