What was the amount of Swift Corporation's bad debt expense for the year? Swift Corporation has provided the following information afteryear-end adjustments:Allowance for Doubtful Accounts was $15,000 at the beginningof the year and $35,000 at the end of the year.. Accounts written off as uncollectible totaled $25,000.What was the amount of Swift Corporation's bad debt expense forthe year?

Concept of Allowance for Doubtful Accounts:Allowance for Doubtful Accounts is a contra-asset account…

Answered: Swift Corporation has provided the…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 44P

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Swift Corporation's has provided the following information after year-end adjustments:
20. Case Co.’s balances in Allowance for Doubtful Accounts were $25,000 at the beginning of the current year and $18,000 at year end. During the year, receivables of $10,000 were written off as uncollectible. What amount should Case report as bad debt expense at year end?
At the end of the year, two similar companies were in the process of calculating bad debt expense for the year. Each company had credit sales of P 1,000,000 and a debit balance in Allowance for Uncollectible Accounts of P 2,000 before any year-end adjustment. The amount of accounts receivable written off during the year for both companies was P 8,000. The balance of Accounts Receivable is P 180,000. A Company estimates that 5% of accounts receivable will not be collected over the next year. B Company estimates that 5% of credit sales will not be collected over the next year. Required: For each company, determine: a) The uncollectible accounts expense for the year. b) The adjusting entry to be made of December 31. c) The balance in Allowance for Doubtful Accounts after adjustment
On December 31, Cosgrove Corporation (a calendar year end corporation) reports an ending balance in accounts receivable (before any adjustments) of $240,000, and total credit sales of $2,900,000 for the year ended December 31, 2022. Crane and Co uses the allowance method to account for uncollectible accounts. Assume Allowance for Doubtful Accounts has an unadjusted balance of ($3,100). Compute the amount of bad debt expense that Cosgrove Corporation will record on December 31, assuming that they use the Percentage of Receivables method to estimate uncollectible accounts. Cosgrove prepared the following aging-of-receivables schedule: Age of Account Current 1-30 days past due 31-90 days past due 91-180 days past due Over 180 days past due Total Accounts Receivable Balance, Dec. 31 $150,000 41,200 26,400 16,200 6,200 $240,000 Estimated Uncollectible Percentage 2% 5% 20% 30% 50%
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $15,000. By the end of the year, actual bad debts total $17,000. Record the writeoff to uncollectible accounts. Following the write-off, what is the balance of Allowance for Uncollectible Accounts?
At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of $882,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $441 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Determine the impact of the December 31, February 1, and June 5 transactions on the accounting equation. For each transaction, indicate whether there would be an increase, decrease, or no effect, for Assets, Liabilities, and Equity. Note: Leave no cells blank.
At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $21,500. By the end of the year, actual bad debts total $23,500. Determine the financial statement effects of writing off an uncollectible account. (Amounts to be deducted should be entered with minus sign.)
Corp uses the allowance method to account for uncollectible receivables. At the beginning of the year, Allowance for Bad Debts had a credit balance of $1,300. During the year, Corp wrote off uncollectible receivables of $2,500. Corp recorded a Bad Debts Expense of $3,500. What is Corp's year-end balance in Allowance for Bad Debts?
[The following information applies to the questions displayed below.]At year-end December 31, Chan Company estimates its bad debts as 0.90% of its annual credit sales of $859,000. Chan records its bad debts expense for that estimate. On the following February 1, Chan decides that the $430 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries to record the transactions of December 31, February 1, and June 5.
At year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $859,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $430 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off.Prepare the journal entries for these transactions.
At year-end (December 31), Chan Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $580 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions.
At year-end (December 31), Chan Company estimates its bad debts as 0.20% of its annual credit sales of $917,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $459 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.

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