**% of Credit Sales Method**Jax, Inc. displayed the following account balances on December 31, 2020, and recognizes bad debt at 1% of credit sales.**Required:**1. Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided:| Account | DR | CR ||------------------------------------|-----------|---------|| Accounts receivable | 982,000 | || Allowance for doubtful accounts | | 25,000 || Net credit sales | | 685,000 |**General Ledger:**| Accounts Receivable A | Debit | Credit ||--------------------------|-------|--------|| | | || Allowance for Doubtful XA | Debit | Credit ||---------------------------|-------|--------|| | | || Bad Debt Expense E | Debit | Credit ||--------------------------|-------|--------|| | | |**Transaction Analysis:**| ASSETS | = | LIABILITIES | + | EQUITY ||---------------|---|-------------|---|--------|| | | | | || REVENUES | - | EXPENSES | = | NET INCOME ||---------------|---|-------------|---|------------|| | | | | |**General Journal:**| DR | CR ||-----|-----|| 44 | |2. What is the net realizable value of Accounts Receivable?

Bad-debts are accounts that a company will not receive in future.

% of Credit Sales Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 1% of credit sales. Required 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts Net credit sales 982,000 25,000 685,000 Page Allowance for Doubtful XA Debit General Ledger Accounts Receivable A Debit Bad Debt Expense E Credit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOM General Journal DR CR 44 2 What is the net realizable value of Accounts receivable?

% of Credit Sales Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 1% of credit sales. Required 1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts Net credit sales 982,000 25,000 685,000 Page Allowance for Doubtful XA Debit General Ledger Accounts Receivable A Debit Bad Debt Expense E Credit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOM General Journal DR CR 44 2 What is the net realizable value of Accounts receivable?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Entry for bad debt expenses
weat subject-Accounting
The trial balance before adjustment of saturn corp shows the following balances. Dr. P97,400 3,300 Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a P1,857 credit balance. P643,200
Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $16700. If the balance of the Allowance for Doubtful Accounts is $2070 credit before adjustment, what is the amount of bad debt expense for that period? $16700 $2070 $14630 $18770
Please do not give solution in image format thanku
pls help
Please do not give solution in image format thanku
The trial balance before adjustment of Raisen Company reports the following balances: Dr. Cr. Accounts receivable P150,000 P 2,500 850,000 Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances 40,000 Instructions (a) Prepare the entries for estimated bad debts assuming that doubtful accounts are estimated to be (1) 6% of gross accounts receivable and (2) 1% of net sales. (b) Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of P2,500 instead of a credit balance. Prepare necessary journal entries
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…
Do not give solution in image
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
Please do not give solution in image format thanku