Tanning Company analyzes its recelvables to estimate bad debt expense. The accounts receivable balance is $370,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 7% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment? a. Bad Debt Expense 22,300 Allowance for Doubtful Accounts 22,300 Ob. Bad Debt Expense 22,800 Allowance for Doubtful Accounts 22,800 Oc Bad Debt Expense 24,300 Allowance for Doubtful Accounts 24,300 Od. Bad Debt Expense 23,300 Allowance for Doubtful Accounts 23,300

Tanning Company analyzes its recelvables to estimate bad debt expense. The accounts receivable balance is $370,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 7% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,600 before adjustment? a. Bad Debt Expense 22,300 Allowance for Doubtful Accounts 22,300 Ob. Bad Debt Expense 22,800 Allowance for Doubtful Accounts 22,800 Oc Bad Debt Expense 24,300 Allowance for Doubtful Accounts 24,300 Od. Bad Debt Expense 23,300 Allowance for Doubtful Accounts 23,300

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Description: Tanning Company analyzes its recelvables to estimate bad debt expense. The accounts receivable balance is $370,000 and credit sales are $1,000,000.An aging of accounts receivable shows that approximately 7% of the outstanding receivables will be unc

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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On December 31, 2022, Ace Hardware reported the following information on its balance sheet: Accounts Receivable $1,350,000 Allowance for Doubtful Accounts (credit) 81,000 During 2023, the Company had the following transactions related to receivables: Sales on Account Collections on Account Write-offs of uncollectible accounts Recovery of previously written off accounts If bad debts are estimated to be 1.50% of credit sales, determine the ending balance in the Allowance for Doubtful Accounts after adjustment, at the end of 2023: Select one: O $4,500,000 4,275,000 90,000 18,000 a. $67,500 b. $94,500 c. $58,500 d. $76,500 e. $74,250
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Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Dorothy Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment?
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Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $ 620,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $ 3,320. (a) V Your answer is correct Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Bad Debt Expense 9080 Allowance for Doubtful Accounts 9080 eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) Your answer is partially correct. If the allowance for doubtful accounts had a debit balance of $ 800 instead of a credit balance of $ 3,320, prepare the adjusting journal entry for bad debt expense. (Credit account titles are automatically…
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