QUESTION 3 At year-end, Shifty Ltd had a balance of accounts receivable of $90 000 and an allowance for doubtful debts of $4000. It was decided to write off the debt of Wriggler, totalling S2500, as irrecoverable. It was further decided that the allowance for doubtful debts should stand at 5% of accounts receivable What was the journal entry needed to write off the debt of Wriggler as irrecoverable? OA. DR Bad debts expense S2500 CR Accounts receivable $2500 OB. DR Bad debts expense CR Cash S2500 $2500 O C. DR Bad debts expense CR allowance for doubtful debts S2500 S2500 O D. DR Allowance for doubtful debts S2500 CR Accounts receivable $2500

QUESTION 3 At year-end, Shifty Ltd had a balance of accounts receivable of $90 000 and an allowance for doubtful debts of $4000. It was decided to write off the debt of Wriggler, totalling S2500, as irrecoverable. It was further decided that the allowance for doubtful debts should stand at 5% of accounts receivable What was the journal entry needed to write off the debt of Wriggler as irrecoverable? OA. DR Bad debts expense S2500 CR Accounts receivable $2500 OB. DR Bad debts expense CR Cash S2500 $2500 O C. DR Bad debts expense CR allowance for doubtful debts S2500 S2500 O D. DR Allowance for doubtful debts S2500 CR Accounts receivable $2500

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Description: QUESTION 3At year-end, Shifty Ltd had a balance of accounts receivable of $90 000 and an allowance for doubtful debts of $4000. It was decided to write off the debt ofWriggler, totalling $2500, as irrecoverable. It was further decided that the allow

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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Problem 3 On January 1,2020, Jamin Company had a credit balance of P260,000 in the allowance for uncollectible accounts. Based on past experience, 2% of credit sales would be uncollectible. During the year, the entity wrote off P325,000 of uncollectible accounts. Credit sales for the year were P9,000,000. On December 31,2020, what amount should be reported as allowance for uncollectible accounts?
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
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View Policies Current Attempt in Progress Vaughn Manufacturing has outstanding accounts receivable totaling $ 6.47 million as of December 31 and sales on credit during the year of $ 24.5 million. There is also a credit balance of $ 11500 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year? O $388200. O $ 399700. O $ 376700. O $1470000. Save for Later Attempts: 0 of 1 used Submit Answer
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