Required: Using the following categories, Indicate the effects of the following transactions. Indicate the accounts affected and the amounts. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) a. During the period, customer balances are written off in the amount of $11,800. b. At the end of the period, bad debt expense is estimated to be $9,800. Assets Liabilities Stockholders' Equity

Required: Using the following categories, Indicate the effects of the following transactions. Indicate the accounts affected and the amounts. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) a. During the period, customer balances are written off in the amount of $11,800. b. At the end of the period, bad debt expense is estimated to be $9,800. Assets Liabilities Stockholders' Equity

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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An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $4,450. If Allowance for Doubtful Accounts has a $1,047 credit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $1,047 b. debit to Bad Debt Expense for $4,450 c. debit to Bad Debt Expense for $3,403 d. credit to Allowance for Doubtful Accounts for $4,450
For each of the following scenarios, indicate the amount of the adjusting journal entry for Bad Debt Expense to be recorded, the balance in Allowance for Doubtful Accounts after adjustment at December 31, and the net realizable value of Accounts Receivable at December 31. a. Based on an analysis of Simmons Company's $380,000 balance in Accounts Receivable at December 31, it was estimated that $15,500 will be uncollectible. There is a credit balance of $1,200 in Allowance for Doubtful Accounts before adjustment. Bad Debt Expense $ Allowance for Doubtful Accounts at Dec. 31 Net Realizable Value of Accounts Receivable at Dec. 31 b. Blake Company had credit sales of $900,000 at year-end, an Accounts Receivable balance of $425,000 at December 31, and an Allowance for Doubtful Accounts credit balance of $11,000 before adjustment. Blake estimates bad debt expense as ¾ of 1% of credit sales. Bad Debt Expense $ Allowance for Doubtful Accounts at Dec. 31 Net Realizable…
An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $5,353. If Allowance for Doubtful Accounts has a $1,093 debit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $6,446 b. debit to Bad Debt Expense for $5,353 c. credit to Allowance for Doubtful Accounts for $1,093 d. debit to Bad Debt Expense for $4,260
Carter Paint Company has plants in four provinces. Sales last year were $100 million, and the balance sheet at year-end is similar in percent of sales to that of previous years (and this will continue in the future). All assets and current liabilities will vary directly with sales. Assume the firm is already using capital assets at full capacity. Cash Accounts receivable. Inventory Current assets Capital assets Assets Total assets $9 15 10 34 34 $68 Balance Sheet (in $ millions) Liabilities and Shareholders' Equity Accounts payable Accrued vages Accrued taxes Current liabilities. Long-term debt Common stock Retained earnings Total liabilities and shareholders' equity $9 8 7 24 10 15 19 $68 The firm has an aftertax profit margin of 8 percent and a dividend payout ratio of 40 percent. a. If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the expansion. (Do not round intermediate calculations. Enter the answer in millions. Round the final…
For the items listed below, indicate how each should be reported in the financial statements. Use the following letter code for your selections: a. Continuing operations b. Discontinued operations c. Prior period adjustment 1. The percentage of estimated bad debts was increased from 1% to 2%, thus increasing bad debt expense. 2. Obsolete inventory was written off. 3. Investments were sold for less than cost. 4. It was discovered that dividend revenue was inadvertently omitted from last year’s income statement. 5. The company sold one of its warehouses at a loss. 6. Litigation with the federal government related to income taxes of three years ago was settled. The company is continually involved in various adjustments with the federal government related to its taxes. 7. A component of the business was disposed of at a loss. 8. The company neglected to record depreciation expense on some assets in the previous year. 9. All production in the United States was…
Use the Dynamic Exhibit to answer the following questions. 1. When the percent of uncollectible accounts is .75%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 2 2. When the percent of uncollectible accounts is 1%, the entry for bad debt expense is a debit to bad debt expense for $fill in the blank 4 3. When the unadjusted balance of Allowance for Doubtful Accounts is a debit of $2,100, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 5 4. When the unadjusted balance of Allowance for Doubtful Accounts is a credit of $3,250, and the percent of uncollectible accounts is .75%, the adjusted balance at December 31 after the entry for uncollectible accounts is made is $fill in the blank 6
At the end of the current year, Accounts Receivable has a balance of $128,310; Allowance for Doubtful Accounts has a debit balance of $3,095; and sales for the year total $947,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$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
At the end of the current year, Accounts Receivable has a balance of $947,700; Allowance for Doubtful Accounts has a credit balance of $7,201; and credit sales for the year total $3,040,000. Bad debt expense is estimated at 1/2 of 1% of credit sales. a. Determine the amount of the adjusting entry for bad debt expense. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Adjusted Balance Bad Debt Expense c. Determine the net realizable value of accounts receivable. $
Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates that the estimated amount of uncollectible accounts is $16,000. Based on the estimate, which of the following adjusting entries should be made? a.debit Allowance for Doubtful Accounts, $800; credit Bad Debt Expense, $800 b.debit Bad Debt Expense, $16,800; credit Allowance for Doubtful Accounts, $16,800 c.debit Bad Debt Expense, $800; credit Allowance for Doubtful Accounts, $800 d.debit Bad Debt Expense, $15,200; credit Allowance for Doubtful Accounts, $15,200
At the end of the current year, Accounts Receivable has a balance of $148,390; Allowance for Doubtful Accounts has a debit balance of $4,406; and sales for the year total $1,056,000. Bad debt expense is estimated at 2% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $ Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.$
9. On December 31, (before adjusting and closing the account), the allowance for doubtful accounts showed a debit balance of $950. An aging of the accounts receivable indicated that the amount expected to be uncollectible was $4,900. The adjusting journal entry to record bad debt expense would include: ABCDE A. B. C. D. E. a credit to Bad Debt Expense for $5,850. a credit to Allowance for Doubtful Accounts for $5,850 a debit to Bad Debt Expense for $4,900 a credit to Accounts Receivable for $3,950 a debit to Bad Debt Expense for $3,950