Sage Hill Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts: Debit Credit Allowance for doubtful accounts $8,200 Sales revenue $2,085,000 Sales returns and allowances 61,400 Sales discounts 5,400 Sage Hill estimates its bad debt expense to be 1.5% of net sales. Determine its bad debt expense for 2020. (Round answer to 0 decimal places, e.g. 58,971.)
Sage Hill Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts: Debit Credit Allowance for doubtful accounts $8,200 Sales revenue $2,085,000 Sales returns and allowances 61,400 Sales discounts 5,400 Sage Hill estimates its bad debt expense to be 1.5% of net sales. Determine its bad debt expense for 2020. (Round answer to 0 decimal places, e.g. 58,971.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter16: Accounting For Accounts Receivable
Section: Chapter Questions
Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...
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A series of unrelated situations follow for several companies that use ASPE:
Sage Hill Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts:
Sage Hill estimates itsbad debt expense to be 1.5% of net sales. Determine its bad debt expense for 2020. (Round answer to 0 decimal places, e.g. 58,971.)
Debit | Credit | |||
Allowance for doubtful accounts | $8,200 | |||
Sales revenue | $2,085,000 | |||
Sales returns and allowances | 61,400 | |||
Sales discounts | 5,400 |
Sage Hill estimates its
Bad debt expense | $Enter your answer in accordance to the question statement |
At the end of its first year of operations, on December 31, 2020, Splish Brothers Inc. reported the following information:
What is the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts?
$960,000 | ||
Customer accounts written off as uncollectible during 2020 | 23,000 | |
Bad debt expense for 2020 | 97,000 |
What is the balance in accounts receivable at December 31, 2020, before subtracting the allowance for doubtful accounts?
Accounts receivable, before deducting allowance for doubtful accounts | $Enter your answer in accordance to the question statement |
The following accounts were taken from Skysong Inc.’s unadjusted trial balance at December 31, 2020:
If doubtful accounts are 6% of accounts receivable, what is the bad debt expense amount to be reported for 2020?
Debit | Credit | |||
Sales revenue (all on credit) | $960,000 | |||
Sales discounts | $22,300 | |||
Allowance for doubtful accounts | 34,700 | |||
Accounts receivable | 720,000 |
If doubtful accounts are 6% of accounts receivable, what is the bad debt expense amount to be reported for 2020?
Bad debt expense | $Enter your answer in accordance to the question statement |
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