nber 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1 nd the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. the following correctly states the effect of the adjustment dated December 31, Year 1, on the financial statements of the Loudoun Corporation? Balance Sheet Income Statement. Assets 3,375) 3,375) = Liabilities + 3,375 ΝΑ Stockholders' Equity ΝΑ (3,375) Revenue ΝΑ ΝΑ Expense ΝΑ 3,375 = Net Income ΝΑ (3,375) Statement of Cash Flows ΝΑ ΝΑ

nber 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1 nd the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. the following correctly states the effect of the adjustment dated December 31, Year 1, on the financial statements of the Loudoun Corporation? Balance Sheet Income Statement. Assets 3,375) 3,375) = Liabilities + 3,375 ΝΑ Stockholders' Equity ΝΑ (3,375) Revenue ΝΑ ΝΑ Expense ΝΑ 3,375 = Net Income ΝΑ (3,375) Statement of Cash Flows ΝΑ ΝΑ

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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What is the Allowance for Uncollectible Accounts at December 31 of the current year after adjustments? attached in ss below thansk rgwiohwj ohwt hw
8. Alladin Corporation uses the allowance method in estimating uncollectibles. At the end of the year, Alladin Corporation estimates that 2% of its credit sales of $1,000,000 will be uncollectible. Allowance for Doubtful Accounts has a credit balance of $1,000 before adjustment. What is the amount of the adjusting entry? a. $20,000 b. $21,000 c. $22,000 d. $19,000
At the end of the year, Mercy Cosmetics' balance of Allowance for Uncollectible Accounts is $440 (credit) before adjustment. The balance of Accounts Receivable is $17,000. The company estimates that 12% of accounts will not be collected over the next year. What adjustment would Mercy Cosmetics record for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun's customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050. Which of the following correctly states the effect of recording the collection of the reestablished receivable on April 4, Year 2? A. B. ܫ C. D. Assets 1,050 (1,050) 1,050 1,050 1,050 (1,050) Multiple Choice Option B Option D Option C Option A Balance Sheet =Liabilities + ΝΑ ΝΑ ΝΑ ΝΑ Stockholders' Equity ΝΑ 1,050 1,050 ΝΑ Income Statement Revenue ΝΑ 1,050 ΝΑ ΝΑ Expense ΝΑ ΝΑ (1,050) ΝΑ = Net Income ΝΑ 1,050 1,050 ΝΑ Statement of Cash Flows ΝΑ 1,050 OA 1,050 OA 1,050 OA
The Allowance for Bad Debts account had a balance of $6,700 at the beginning of the year and $8,900 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $12,200 was recognized. Required: Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint: Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.)
At the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $220 (credit) before any year-end adjustment. The balance of Accounts Receivable is $15,900. The company estimates that 14% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit 30 F3 888 F7 F9 F10 # 2$ % & 3 4 6 7 8 9. E R Y P { F K L < ? C V alt command option + || .. .. | H
Warner Company’s year-end unadjusted trial balance shows accounts receivable of $115,000, allowance for doubtful accounts of $760 (credit), and sales of $440,000. Uncollectibles are estimated to be 1.50% of accounts receivable. Prepare the December 31 year-end adjusting entry for uncollectibles. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $1,100?
At the beginning of the year, the balance in the Allowance for Doubtful Accounts is a credit of $743. During the year, $344 of previously written off accounts were reinstated and accounts totaling $756 are written off as uncollectible. The end-of-year balance (before adjustment) in the Allowance for Doubtful Accounts should be the one listed below. a.$331 b.$756 c.$344 d.$743
At the end of its first year of operations, a company establishes an allowance for future uncollectible accounts for $5,600. At what amount would bad debt expense be reported in the current year's income statement? Multiple Choice O $6,400. $5,600. $4,800. $800.
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,700. During the year, Abbott wrote off accounts receivable totaling $2,700 and made credit sales of $90,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $3,700 Ob. $6,400 Oc. $3,700 Od. $2,700 All work saved. Used Car I Ford Search Your Local Blue Advantage # %66°0
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $752. During the year, previously written off accounts of $141 are reinstated and accounts totaling $710 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be a.$183 b.$710 c.$141 d.$752
14. On December 31, 2021, Andy Inc. has a debit balance of $1,500 for the Allowance for Uncollectible Accounts before any year-end adjustment. Andy Inc. also has the following information for its accounts receivable and the estimated percentages of bad debts for different past-due amounts: A. B. C. D. Age Group (days past due) 0-30 31-60 61-90 $6,500. $1,500. $5,000. $8,000. Accounts Receivable $50,000 $20,000 $10,000 Estimated Percent Uncollectible 5% What is the amount of bad debt expense to be reported on Andy Inc.'s financial statements for 2021 using the aging method? 10% 20%