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 indicat 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. $

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 indicat 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. $

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. $
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Question: Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,000. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $250. What amount of Bad Debt Expense would the company record as an end-of- period adjustment?