Spring Garden Flowers had the following balances at December 31, 2024, before the year-end adjustments: E (Click the icon to view the balances.) The aging of accounts receivable yields the following data: E (Click the icon to view the accounts receivable aging schedule.) Requirements 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Credit Dec. 31 Data Table Accounts Receivable Allowance for Bad Debts 66,000 |1,615 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Print Done Data Table Age of Accounts Receivable 0-60 Days Over 60 Days Total Receivables Accounts Receivable %2$ 60,000 6,000 %24 66,000 Estimated percent uncollectible x 3% x 22% Print Done

Spring Garden Flowers had the following balances at December 31, 2024, before the year-end adjustments: E (Click the icon to view the balances.) The aging of accounts receivable yields the following data: E (Click the icon to view the accounts receivable aging schedule.) Requirements 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Credit Dec. 31 Data Table Accounts Receivable Allowance for Bad Debts 66,000 |1,615 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Print Done Data Table Age of Accounts Receivable 0-60 Days Over 60 Days Total Receivables Accounts Receivable %2$ 60,000 6,000 %24 66,000 Estimated percent uncollectible x 3% x 22% Print Done

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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Wolfpack Inc.’s trial balance indicates the following select account balances at the end of 2022 before the year-end adjustment to record bad debts: Account Debit Credit Account Receivable 700000 Allowance of Doubtful Accounts 8000 Sales Revenue 9000000 A) At the end of 2022, Wolfpack’s management estimates that 3% of its ending gross Accounts Receivable account balance will be uncollectible. How do you prepare the 12/31/22 journal entry to record bad debts expense for 2022? What is the Net Realizable Value? B) Assume that on February 4 of the following year, Wolfpack specifically writes off the receivable balance for one of its customers. The customer owes Wolfpack $4,000. Prepare the specific write-off journal entry to record this uncollectible account.
Allowance for Doubtful Accounts has a debit balance of $766 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates uncollectible receivables of $15,294. Which of the following entries records the proper adjusting entry for bad debt expense? a.debit Bad Debt Expense, $14,528 credit Allowance for Doubtful Accounts, $14,528 b.debit Bad Debt Expense, $766 credit Allowance for Doubtful Accounts, $766 c.debit Allowance for Doubtful Accounts, $15,294 credit Bad Debt Expense, $15,294 d.debit Bad Debt Expense, $16,060 credit Allowance for Doubtful Accounts, $16,060
Hi,I am having a terrible time trying to understand when the balance in the allowance for doubtful account is involved in the final answer, and when it is not. Will you please explain why the answers are what they are in the attachment?
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A company uses the allowance method to account for uncollectible accounts. During the year, the company has actual bad debts of $27,000. Record the write-off of the uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the write-off of the uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit 1 4). F12 F7 Fo F3 # 2$ 5 6 7 8 9 { E R Y F G H. K S < M C V alt command option command + lI .. .-
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
On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…
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