The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts UNADJUSTED TBADJUSTMENTSADJUSTED TBINCOME STATEMENTBALANCE SHEETDecember 31, 2021December 31, 2021DebitCreditDebitCreditDebitCreditDebitCreditDebitCreditCash$67,00067,000Short-term investments62,00062,000Accounts receivable, net68,00068,000Allowance for doubtful accounts$1,0001,000Supplies56,00056,000Inventory62,00062,000Prepaid insurance48,00048,000Land450,000450,000Equipment210,000210,000Accumulated depreciation75,00075,000Trademark38,00038,000Accounts payable39,00039,000Wages payableInterest payableIncome tax payable18,00018,0008,2508,250Unearned revenue27,00027,000Long-term notes payable - due 03.01.2360,00060,000Common stock, 50,000 shares issued andoutstanding100,000100,000Retained earnings220,000220,000Dividends40,00040,000Sales revenue, net1,592,9641,592,964Sales discount1,3681,368Sales return and allowances2,5962,596Interest revenuePage 1Cost of goods sold683,100683,100Wages expense240,000240,000Insurance expenseBad debt expenseSupplies expense113,150113,150Depreciation expenseInterest expense443,600Income tax expenseTOTALS2 141 2142 141 2142 144 8142 141 214

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The company estimates 1% of sales revenue should be used to estimate for bad debt expense. what is the amount and what accounts

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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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. 3. Assets Liabilities Stockholders' Equity
5.The amount computed under the percentage of credit sales method is the bad debts expense for the period required balance of the allowance for bad debts the amount to be written off the decrease of the accounts receivable
Indicate whether each statement best describes the allowance method or the direct write-off method. List 1. Usually does not best match sales and expenses because Bad Debts Expense is not recorded until an account becomes uncollectible, which usually occurs in a period after the credit sale. 2. When an account is written off, the debit is to Bad Debts Expense. 3. Does not predict Bad Debts Expense. 4. Accounts receivable on the balance sheet is reported at net realizable value. 5. Estimates Bad Debts Expense related to the sales recorded in that period. 6. Matches the estimated loss from uncollectible accounts receivable against the sales they helped create. Method Allowance Direct write-off
A company had sales of $60,400 and cost of goods sold of $15,200 for the period. The company uses the percentage of sales method and estimates 3% of sales will result in uncollectible accounts. Before the end of period adjustment is made, the allowance for doubtful accounts has a debit balance of $440. After making the adjustment for Bad Debt Expense, what is the amount of the ending balance in the Allowance for Doubtful accounts? $______
If the Net Realisable Value of Accounts Receivable = $35,000 and the balance of Accounts Receivable = %3D $42,300, then the balance of Allowance for Doubtful Debts must be: Select one: a. $12,900 O b. $13,100 O c. $7,300 O d. $12,400
Whispering SA reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue No. Account Titles and Explanation (a) Dr. €140,800 (b) Prepare the journal entry to record bad debt expense assuming Whispering estimates bad debts at (a) 4% of accounts receivable assuming Allowance for Doubtful Accounts has the balance given in the problem data, and (b) 4% of accounts receivable assuming Allowance for Doubtful Accounts has a € 1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Cr. €2,480 816,800 Debit Credit
Rahul
Match the terms with the definitions.
Under the direct write-off method of accounting for uncollectible accounts, Bad Debt Expense is recorded Oa. when a credit sale is past due O b. whenever a predetermined amount of credit sales has been made Oc. when an account is determined to be worthless O d. at the end of each accounting period
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Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $16700. If the balance of the Allowance for Doubtful Accounts is $2070 credit before adjustment, what is the amount of bad debt expense for that period? $16700 $2070 $14630 $18770
Which of the following statements regarding the allowance method is talse? Multiple Choice The allowance method estimates bad debts expense at the end of each accounting period and records it w The allowance method does not record bad debt expense until a customer's account receivable is determir