Percent of Sales MethodAt the end of the current year, Accounts Receivable has a balance of $870,000, Allowance for Doubtful Accounts has a debit balance of $8,000, and sales for the year total $3,920,000. Bad debt expense is estimated at 3/4 of 1% of sales.a. Determine the amount of the adjusting entry for uncollectible accounts.b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.Accounts ReceivableAllowance for Doubtful AccountsBad Debt ExpenseAdjusted BalanceDebit (Credit)c. Determine the net realizable value of accounts receivable.

Step 1:Answer a.Amount of the adjusting entry for uncollectible accounts = Sales*Estimated percent…

Answered: Percent of Sales Method At the end of…

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

Sah
Answer all the parts with working, answer in text form please (without image)
Analysis of Receivables Method At the end of the current year, Accounts Recelvable has a balance of $465,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $2,090,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,400. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense C. Determine the net realizable value of accounts receivable.
At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $630,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,840,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $25,400. a. Determine the amount of the adjusting entry for uncollectible accounts. 22,900 X b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. 601,200 X Feedback 630,000 ✓ 28,400 X 22,900 X Check My Work The analysis of receivables method is based on the assumption that the longer an account receivable is outstanding the less likely that it will be collected. The amount of the adjusting entry is the amount that will yield an adjusted balance for Allowance for Doubtful Accounts.
Allowance for Doubtful Accounts has a credit balance of $1,468 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $20,012. Which of the following entries records the proper adjustment for bad debt expense? a.debit Allowance for Doubtful Accounts, $18,544; credit Bad Debt Expense, $18,544 b.debit Bad Debt Expense, $18,544; credit Allowance for Doubtful Accounts, $18,544 c.debit Allowance for Doubtful Accounts, $21,480; credit Bad Debt Expense, $21,480 d.debit Bad Debt Expense, $21,480; credit Allowance for Doubtful Accounts, $21,480
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,214,000 and sales for the year total $13,760,000. a. The allowance account before adjustment has a credit balance of $16,400. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $52,500. c. The allowance account before adjustment has a debit balance of $9,100. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $9,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $75,500. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. а. $ b. $ c. $ d. $
At the end of the current year, Accounts receivable account has a debit balance of $2,700,000 and sales for the year total $32,400,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: The allowance account before adjustment has a debit balance of $27,100. Bad debt expense is estimated at ½ of 1% of sales The allowance account before adjustment has a debit balance of $27,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $128,000. The allowance account before adjustment has a credit balance of $17,900. Bad debt expense is estimated at ¾ of 1% of sales. The allowance account before adjustment has a credit balance of $17,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $279,000.
Analysis of receivables methodAt the end of the current year, Accounts Receivable has a balance of$2,150,000; Allowance for Doubtful Accounts has a debit balance of$10,500; and sales for the year total $51,850, 000. Using the aging method,the balance of Allowance for Doubtful Accounts is estimated as $110,000.Determine (A) the amount of the adjusting entry for uncollectibleaccounts; (B) the adjusted balances of Accounts Receivable, Allowancefor Doubtful Accounts, and Bad Debt Expense; and (C) the net realizablevalue of accounts receivable.
Please Do not Give image format
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,236,000 and sales for the year total $14,010,000. a. The allowance account before adjustment has a credit balance of $16,700. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,400. c. The allowance account before adjustment has a debit balance of $7,200. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $7,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $59,800. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. а. $ b. $ С. $ d. $
nalysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $565,000, Allowance for Doubtful Accounts has a credit balance of $5,000, and sales for the year total $2,540,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $26,000. a. Determine the amount of the adjusting entry for uncollectible accounts.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS