**% 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 the possibility of turning into bad debts. This account is shown in the balance sheet just following the accounts receivable as a deduction.1. The adjustment to recognize bad debts expense is calculated, recorded, posted, and analyzed as under: Reference: Calculation:4. Net realizable value of accounts receivable is calculated as under: Reference: Calculation:

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Accounting

% 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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Question 9 Concord Company provides for bad debt expense at the rate of 3% of accounts receivable. The following data are available for 2018: Allowance for doubtful accounts, 1/1/18 (Cr.) $ 11300 Accounts written off as uncollectible during 2018 10400 Ending accounts receivable 1204000 The Allowance for Doubtful Accounts balance at December 31, 2018, should be $37020. $900. $36120. $35220.
ts The Tz Corp. estimates bad debt expense at 0.30 % of credit sales . The company reported accounts receivable and allowance for uncollectible accounts of 490,000 and 1,610 respectively December 31 2023. During 2024 , Tzs credit sales and cash collections were $327,000 and respectively , and $1,890 in accounts receivable were written off 2024 bad debt expense is $ 981 . $ 1,660 $ 1,056 . None of the options listed . $987
Chapter 5: Receivables and Sales A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 8% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 1,000,000 Accounts receiyable (A/R) 90,000 Allowance for uncollectible accounts ("AUA") 1,800 Credit Bal. Estimated percent uncollectible. 6.0% Create T accounts for A/R, AUA and Bad debt expense to help with the following questions. Accounts Receivable AUA Bad Debt Expense How much of the Accounts Receivable does management not expect to collect? What amount will the company record as bad debt expense for the YR2? What amount will be shown on the 12/31 balance sheet for Net Accounts Receivable? 1 2 3 On January 5, YR3, the company writes off an A/R they determined is uncollectible. After the write off, what is the balance in AUA? The 4 amount of the write-off is: 200 After the write off, what…
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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.
The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts