Providing for doubtful accountsAt the end of the current year, the accounts receivable account has a debit balance of $844,000 and sales for the year total $9,560,000.a. The allowance account before adjustment has a debit balance of $11,400. Bad debt expense is estimated at 1/2 of 1% of sales.b. The allowance account before adjustment has a debit balance of $11,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of$36,500.c. The allowance account before adjustment has a credit balance of $8,500. Bad debt expense is estimated at 1/4 of 1% of sales.d. The allowance account before adjustment has a credit balance of $8,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of$70,600.Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.a.b. $DEC. $d. $

a. $36,400b. $ 25,100c.$15,400d. $ 62,100 Explanation: a.Bad debt expense = 0.5% * $9,560,000 =…

Answered: Providing for doubtful accounts At the…

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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Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases AND indicate the ending balance in each case. (a) Debit balance of $400 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $10,000. (b) Credit balance of $1000 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 2% of credit sales, Total sales were $1,800,000 of which $400,000 were cash sales. View keyboard shortcuts EditViewInsertFormatToolsTable 12pt Paragraph
Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $1,006,000 and sales for the year total $11,410,000. a. The allowance account before adjustment has a debit balance of $13,600. Bad debt expense is estimated at 3/4 of 1% of sales. b. The allowance account before adjustment has a debit balance of $13,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $43,500. c. The allowance account before adjustment has a credit balance of $4,500. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a credit balance of $4,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $37,400. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. b. C. d. $
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $715,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,220,000. Bad debt expense is estimated at 1/4 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 Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable. %24 %24 %24
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At year end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days past due. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year end adjustments. Using the aging of accounts receivable method, Chief estimates that 1% of current accounts and 10% of accounts over 30 days past due are uncollectible. what is the amount of bad debt expense?
Allowance for Doubtful Accounts has a credit balance of $843 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $13,733. Which of the following entries records the proper adjustment for Bad Debt Expense? Select the correct answer. debit Allowance for Doubtful Accounts, $12,890; credit Bad Debt Expense, $12,890 debit Bad Debt Expense, $12,890; credit Allowance for Doubtful Accounts, $12,890 debit Allowance for Doubtful Accounts, $14,576; credit Bad Debt Expense, $14,576 debit Bad Debt Expense, $14,576; credit Allowance for Doubtful Accounts, $14,576
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
Glazer Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various aged categories of accounts. The Glazer Company computes a total of $10,800 in estimated doubtful accounts as of December 31. Its Accounts Receivable account has a balance of $338,400 and its Allowance for Doubtful Accounts has a credit balance of $1,800 before adjustment at December 31. How much bad debts expense will Glazer report for the year? Select one: O A. $11,520 O B. $9,000 O C. $10,080 O D. $1,440.
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
Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoe’s allowance for doubtful accounts at the beginning of the year was$58,620 (credit). During the year, accounts in the total amount of $62,400 were written off.Required:1. Determine bad debt expense.2. Prepare the journal entry to record bad debt expense.3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how muchwould bad debt expense reported on the income statement have changed?
Allowance for Doubtful Accounts has a debit balance of $439 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 1% of sales. If net credit sales are $928,100, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a.$8,842 b.$9,720 c.$439 d.$9,281

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