**Required Information***The following information applies to the questions displayed below.*At December 31, Hawke Company reports the following results for its calendar year:- **Cash sales:** $2,181,050- **Credit sales:** $3,134,000In addition, its unadjusted trial balance includes the following items:- **Accounts receivable:** $949,602 debit- **Allowance for doubtful accounts:** $10,550 debit**Required:**1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.**Adjusting entries** (all dated December 31). *(Do not round intermediate calculations.)* **Required Information***The following information applies to the questions displayed below:*At December 31, Hawke Company reports the following results for its calendar year:- **Cash sales:** $2,181,050- **Credit sales:** $3,134,000In addition, its unadjusted trial balance includes the following items:- **Accounts receivable:** $949,602 debit- **Allowance for doubtful accounts:** $10,550 debit**2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.**The table displays “Current Assets” with two empty lines and a total of $0.

Bad debts expense for 1c. = Accounts receivable x 6% + Debit balance of Allowance for doubtful…

Answered: Required information [The following…

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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View transaction list 1 Bad debts are estimated to be 4% of credit sales. 2 Bad debts are estimated to be 3% of total sales. 3 An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. EX EX:
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,200. During the year, Abbott wrote off accounts receivable totaling $2,300 and made credit sales of $96,000. After the adjusting entry, the December 31 balance in Bad Debt Expense will be Oa. $5,120 Ob. $1,920 Oc. $3,200 Od. $2,820 Previous Next
The unadjusted trial balance at year-end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts 1,330 Net Sales $443,000 Debit Credit 2,180,000 Credit All sales are made on credit. Based on past experience, the company estimates 4.0% of ending accounts receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Debit Bad Debts Expense $18,720; credit Allowance for Doubtful Accounts $18,720. Debit Bad Debts Expense $19,050; credit Allowance for Doubtful Accounts $19,050. Debit Bad Debts Expense $17,720; credit Allowance for Doubtful Accounts $17,720. Debit Bad Debts Expense $16,390; credit Allowance for Doubtful Accounts $16,390. O Debit Bad Debts Expense $8,720; credit Allowance for Doubtful Accounts $8,720.
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At the end of the current year, Accounts Receivable has a balance of $717,190; Allowance for Doubtful Accounts has a credit balance of $5,712; and sales for the year total $3,403,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
A company has the following unadjusted account balance at December 31 of the current year: Allowance for Doubtful Accounts of $3,400 (debit balance). This company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the current year end: Account Age Balance Estimated uncollected Percentage Current (not yet due) $396,400 2.0% 1-30 days past due 277,800 4.0 31-60 days past due 48,000 8.5 61-90 days past due 6,600 39.0 Over 90 days past due 2,800 82.0 Total $731,600 Calculate the amount of Allowance for Doubtful Accounts that should appear on the December 31, of the current year, balance sheet. Show your work here. Prepare the adjusting journal entry to record the bad debts expense for the current year into the general journal.
At the end of the current year, Accounts Receivable has a balance of $940,940; Allowance for Doubtful Accounts has a credit balance of $6,235; and sales for the year total $2,902,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. c. Determine the net realizable value of accounts receivable.
Analysis of Receivables Method At the end of the current year, Accounts Recelvable has a balance of $465,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $2,090,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $18,400. 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.
On December 31, 2021, Vaden Corporation had the following account balances related to credit sales and receivables prior to recording adjusting entries: Accounts receivable $350,000 Allowance for doubtful accounts 400 (credit balance) Sales revenue (all credit sales) 1,050,000 Required: Prepare the necessary year-end adjusting entry to estimate bad debt expense for each of the following independent assumptions: Accounts Receivable is aged into three categories – Current $210,000, 30 – 60 days past due - $80,000 and >60 days past due - $60,000. Additionally, the amount uncollectible for each category is 5% for current, 10% for 30-60 days and 25% for > 60 days. It is estimated that 2% of credit sales for the year will prove to be uncollectible.
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $108,500, and it estimates that 5% will be uncollectible.Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,845 credit balance before the adjustment. (b) a $543 debit balance before the adjustment.
Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 1,905,000 $ 5,682,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 1,270, 100 debit $ 16,580 debit 2. Bad debts are estimated to be 1.5% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: Accounts payable $ 0

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