4GVo).l i 15:42 u. ♡LTE2 7, 15% 40แบบฝึกหัดท้ายบท 3. H :Required1. Use the preceding analysis to compute the estimated amount of uncollectiblereceivables.2. Prepare the journal entry to record Nana Company estimated uncollectibles, assumingthe balance in the Allowance for Doubtful Accounts prior to adjustment is:a. 0b. $3,000 (Debit)c. $2,800 (Credit)da 8 (Estimating Bad Debts from Receivables Balances)The following information is extracted from the accounting records of the SheltonCorporation at the beginning of 2012:Accounts Receivable$63,000Allowance for Doubtful Accounts1,400 (Credit)During 2012 sales on credit amounted to $575,000, $557,400 was collected on outstandingreceivables, and $2,600 of receivables were written off as uncollectible. On December 31, 2012,Shelton estimates its bad debts to be 4% of the outstanding gross accounts receivable balance.Required1. Prepare the journal entry to record Shelton's estimate of bad debt expense for 2012.2. Prepare the Accounts Receivable section of Shelton's December 31, 2012 financialposition statement.da 9 (Estimation vs. Direct Wrote-Off of Bad Debts)The Blue Company makes credit sales of $21,000 during the month of February 2012. During2012 collections are received on February sales of $20,400, accounts representing $600 of thesesales are written off as uncollectible, and a $100 account previously written off is collected.RequiredPrepare the journal entries necessary to record the preceding information if1) Bad debts are estimated as 3% if sales at the time of sales, and2) The bad debts are recorded as they actually occur.da 10 (Comparison of Bad Debt Estimation Methods)The following information (Prior to adjustment) is available from the accounting records ofthe Boy Company on December 31, 2012:

Bad debt expense is the expense which is associated to the accounts receivables of the company. This…

Required 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Nana Company estimated uncollectibles, assuming the balance in the Allowance for Doubtful Accounts prior to adjustment is:

Required 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Nana Company estimated uncollectibles, assuming the balance in the Allowance for Doubtful Accounts prior to adjustment is:

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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Under the allowance method, estimated uncollected receivables are credited to?
Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a a.credit to Accounts Receivable. b.credit to Bad Debt Expense. c.debit to Accounts Receivable. d.debit to Allowance for Doubtful Accounts.
S1: The term “past due” refers to the period before the maximum credit term. S2: The rate for estimating doubtful accounts is usually determined using future experiences of the entity S3: Direct write off method does not require recognition for a doubtful account. S4: The unadjusted allowance for doubtful accounts is ignored in determining the doubtful account expense in percent of sale method. a. All statements are correct. b.All statements are incorrect. c. Only two statements are correct. d. Only one statement is correct. e. Only one statement is incorrect.
44.Which is a valid statement regarding the gross price, net price and allowance methods of recording accounts receivable from customers? a. Under the gross method, sales discount is recorded when taken and this account is reported as an item of other expense in the statement of comprehensive income. b. Under the net method, sales discount is recorded when not taken and this is reported as an item of other income in the statement of comprehensive income. c. When accounts receivable have not yet been collected at the end of the year and the discount period has already lapsed, after appropriate adjusting entry(ies), the amount of net accounts receivable reported under the gross method is greater than the amount reported under the net method. d. When accounts receivable have not yet been collected at the end of the year and the discount period has already lapsed, no adjusting entry is required under the net method.
Of the two methods of accounting for uncollectible receivables, the allowance method makes use of an estimate of uncollectible receivables. True False
Which of the following statements is true regarding aging accounts receivable? Multiple Choice The aging method of estimating uncollectible accounts is based on the assumption that the longer an account receivable remains outstanding, the less likely it is to be collected. All of the statements are true. The aging of accounts receivable involves applying lower uncollectible percentage estimates to older receivables. An aging schedule is used to improve the estimate used in the percent of revenue method of determining the uncollectible accounts expense.
Flora Co. uses the allowance method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be to debit a. Allowance for Doubtful Accounts and credit Accounts Receivable. Ob. Sales Returns and Allowances and credit Accounts Receivable. c. Accounts Receivable and credit Bad Debt Expense. Od. Bad Debt Expense and credit Allowance for Doubtful Accounts.
23) Under the allowance method, the entry to record the write-off of a specific account would A. Decrease both accounts receivable and net income B. Increase the allowance for uncollectible accounts and decrease net income C. Decrease both accounts receivable and the allowance for uncollectible accounts D. Decrease accounts receivable and increase the allowance for uncollectible accounts
Using the allowance method of accounting for uncollectible receivables, the entry to reinstate a specific receivable previously written off would include a a.debit to Accounts Receivable b.debit to Allowance for Doubtful Accounts c.credit to Bad Debt Expense d.credit to Accounts Receivable