**% of Receivables Method**Jax, Inc. showed the following account balances on December 31, 2020, and recognizes bad debt at 3% of accounts receivable.**Required**1. Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided:**Account Balances**- **Accounts Receivable** - Debit: 982,000- **Allowance for Doubtful Accounts** - Credit: 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 (Debit)**- **CR (Credit)****Question**4. What is the net realizable value of accounts receivable?The text involves the adjustment process to recognize bad debt expenses, illustrated through account balances, ledger accounts, and a formula for net realizable value.

Allowance for doubtful debts: This account shows the estimated amount of accounts receivable with…

% of Receivables Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 3% of accounts receivable. 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 Accounts Receivable A Credit age Allowance for Doubtful XA Debit Bad Debt Expense E Credit Fage 2 General Ledger Debit Credit Debit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME %3D General Journal DR CR 4lWhat is the net realizable value of Accounts receivable?

% of Receivables Method Jax, Inc. showed the following account balances on December 31, 2020 and recognizes bad debt at 3% of accounts receivable. 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 Accounts Receivable A Credit age Allowance for Doubtful XA Debit Bad Debt Expense E Credit Fage 2 General Ledger Debit Credit Debit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME %3D General Journal DR CR 4lWhat 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

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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…
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Tammany Professional Engineers uses the Percentage of Receivables method to account for bad debt. The following is a summary of Tammany’s Accounts Receivable Aging Report. Cash Sales $42,000 Credit Sales $21,000 Allowance for Uncollectible Accounts December 31, 2020 $4,375 Current > 30 >60 >90 $115,000 $98,000 $75,000 $15,000 Estimated Uncollectible 1% 2% 4% 5% Required: Prepare the total estimate of uncollectible accounts and give the amount of the required adjustment. Do not prepare a journal entry. Please show your work if possible. In addition to submitting your answer here, you should also write it down so you an use it for the next problem.
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The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts
Current Attempt in Progress Wildhorse Company has accounts receivable of $101,200 at March 31, 2022 Credit terms are 2/10, n/30. At March 31, 2022, there is a $1,300 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimates of bad debts are as shown below. Age of Accounts Current 1-30 days past due 31-90 days past due Over 90 days past due Transcribed Text (a) 2022 Balance, March 31 $61,600 22,100 8,600 8,900 2021 $75,000 Total estimated uncollectibles 8,000 2,400 1,100 $101.200 $86,500 Estimated Percentage Uncollectible 3% 5% 23% 50% c Determine the total estimated uncollectibles at March 31, 2022.
Adjusting Allowance for Doubtful Accounts and Bad Debt Expense Merck & Company reported the following in its financial statements. $ millions Accounts receivable, net Allowance for doubtful accounts 2016 2017 2018 2019 $8,773 $8,591 $8,839 $8,473 244 199 149 108 Adjust the balance sheet and income statement to reflect a 1.97874% of Allowance for doubtful accounts to Gross accounts receivables for each year. Assume a tax rate of 20%. • Round answers to one decimal. • Use a negative sign to indicate if the adjustment decreases an account balance. 2016 2017 2018 2019 Adjusted allowance for doubtful accts. $ $ $ $ Income Statement Adjustments Bad debts expense Income tax expense at 20% Net Income Balance Sheet Adjustments Allowance for doubtful accounts Accounts receivable, net Deferred tax liabilities Retained Earnings
% 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 982,000 25,000 Net credit sales 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 INCOME + General Journal DR CR 44 2 What is the net realizable value of Accounts receivable?
Current Attempt in Progress * Your answer is incorrect. Crane Inc. has evaluated its process of calculating estimates of uncollectible accounts receivable. In the past, Crane calculated the Bad Debt Expense as a percentage of sales. It recorded Bad Debt Expense at 1% of sales. Due to changes in the economic conditions, Crane will increase that percentage to 3%. The change is made on January 1, 2025. Salles in 2023 were $1630000 and $3130000 in 2024. Sales in 2025 total $4130000. What is the Bad Debt Expense that Crane will record for 2025? $159100 Ⓒ $217800 O $41300 O $123900 e Textbook and Media Save for Later Attempts: 1 of 2 used Submit Answer
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