Not use ai solution please and accounting question On January 1, 2023, Bright Horizon Co. had an allowance for doubtfulaccounts balance of $8,000. During the year, it wrote off $6,000 inuncollectible accounts. At the end of the year, the company estimatesthat 5% of its outstanding accounts receivable of $120,000 will beuncollectible.What is the bad debt expense for the year?

Step 1: Definition of Bad Debt ExpenseBad debt expense refers to the estimated amount of accounts…

Answered: On January 1, 2023, Bright Horizon Co.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 16Q: Angelos Outlet used to report bad debt using the balance sheet method and is now switching to the...

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Angelos Outlet used to report bad debt using the balance sheet method and is now switching to the income statement method. The percentage uncollectible will remain constant at 5%. Credit sales figures for 2019 were $866,000, and accounts receivable was $732,000. How much will Angelos Outlet report for 2019 bad debt estimation under the income statement method?
Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
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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Dortmund Stockyard reports $896,000 in credit sales for 2018 and $802,670 in 2019. It has a $675,000 accounts receivable balance at the end of 2018, and $682,000 at the end of 2019. Dortmund uses the balance sheet method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Dortmund changes bad debt estimation to the income statement method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Dortmund Stockyard in 2019 as a result of its earnings management.
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% 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 $20,550; 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 $17,430; 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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At the end of its first year of operations, on December 31, 2020, Metlock Inc. reported the following information: Accounts receivable, net of allowance for doubtful accounts $1,030,000 Customer accounts written off as uncollectible during 2020 24,000 Bad debt expense for 2020 98,000 What is the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts? Accounts receivable, before deducting allowance for doubtful accounts $Enter your answer in accordance to the question statement
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On January 1, 2020, Ocean Company's Allowance for Bad debts had a credit balance of P 120,000. During the year, the company wrote off P 205,000 of uncollectible Accounts Receivable, and unexpectedly recovered P 65,000 of bad debts written off in the prior year. Also at the end of this year, the company charged P 280,000 to bad debts expense. How much is the adjusted balance of Allowance for Bad Debts on Dec. 31, 2020? .

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