Prepare the adjusting entries required by the following information made available to you December 31, 2009, the end of the accounting period: A. The Unexpired Insurance account balance of P23,000 represents premium paid on a year insurance policy taken on December 1, 2008. The expired portion for the year 2008 has already been adjusted. B. The business has Accounts Receivable of P14,500 as at the end of 2009. It is estimated that only 90% of this is collectible. Allowance for Doubtful Accounts has an unadjusted balance of P750. C. A six-month advertising contract was entered into by the business which required an advance payment of P2.400 on November 2, 2009 and was debited to Adverting Expense. D. Rent income was credited for P18,000 representing three months rent received from lessee on October 15, 2009. E. Office equipment costing P75,000 was purchased on October 1, 2009 and estimated have a useful life of five years after which it could be sold for P5,000. F. Supplies Expense has a balance of P9,500 representing supplies purchased during the year of which only P4.500 has been taken out from the stockroom.

Prepare the adjusting entries required by the following information made available to you December 31, 2009, the end of the accounting period: A. The Unexpired Insurance account balance of P23,000 represents premium paid on a year insurance policy taken on December 1, 2008. The expired portion for the year 2008 has already been adjusted. B. The business has Accounts Receivable of P14,500 as at the end of 2009. It is estimated that only 90% of this is collectible. Allowance for Doubtful Accounts has an unadjusted balance of P750. C. A six-month advertising contract was entered into by the business which required an advance payment of P2.400 on November 2, 2009 and was debited to Adverting Expense. D. Rent income was credited for P18,000 representing three months rent received from lessee on October 15, 2009. E. Office equipment costing P75,000 was purchased on October 1, 2009 and estimated have a useful life of five years after which it could be sold for P5,000. F. Supplies Expense has a balance of P9,500 representing supplies purchased during the year of which only P4.500 has been taken out from the stockroom.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section: Chapter Questions

Problem 1AP

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What are the adjusting entries?
At December 31, 2018, the Leni Inc. account balances before the year-end adjusting entries are the following, Accounts receivable- P50000 Allowance for uncollectible accounts P4500 According to aging of accounts receivable, P6250 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?
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Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $1,923,000 and sales for the year total $26,920,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: a. The allowance account before adjustment has a debit balance of $13,100. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a debit balance of $13,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $28,100. c. The allowance account before adjustment has a credit balance of $7,300. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $7,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $60,600. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the…
If necessary, record year-end adjusting entries for uncollectible accounts.Prepare the aging schedule for the following accounts receivable: Ageing classification (numbers of due days) Balance sheet as at 31 December Estimate of the percentage of the account that is uncollectible 0-30 days $120,000 1% 31-60 days 80,100 2 % 61-90 days 21,000 11% 91- 120 days 9,000 23% Más de 120 days 15,300 65% Total accounts receivable $245,400
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Patrick Company had the following information in 2021: E (Click the icon to view the information.) If uncollectible accounts are determined by the aging-of-receivables method to be $1,280, the uncollectible account expense for 2021 would be $480. Using the aging-of-receivables method, the balance of the Allowance account after the adjusting entry at year-end 2021 would be - X Data table O A. $800. B. $1,280. Accounts receivable 12/31/21 %24 13,000 OC. $520. OD. $480. Allowance for uncollectible-accounts credit balance 12/31/21 (before adjustment) 800 Credit service revenue during 2021 43,000 Cash service revenue during 2021 13,000 Collections from customers on account during 2021 42,000 Print Done
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Hi,I am having a terrible time trying to understand when the balance in the allowance for doubtful account is involved in the final answer, and when it is not. Will you please explain why the answers are what they are in the attachment?
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