The data below is for Betts Corporation for the year.Accounts receivable-December 31Customer accounts written off as uncollectible duringthe yearAllowance for doubtful accounts--January 1Estimated uncollectible accounts based on an aginganalysisIf the aging approach is used to estimate bad debts, determine the bad debt expense for the year.Select one:OOOA. $48,600B. $48,000C. $52,200D. $59,400$3,216.00048,00052,20063.600 Wilson Company agrees to transfer cash to Davis Company immediately upon deposit of that company's credit card salesreceipts. Wilson Company charges 2% of card sales as its fee.If Davis Company deposits $342.000 credit card sales receipts, which of the following statements are true?Select one:O A. Wilson Company will receive $342.000 cash from Davis Company.OB. Davis Company will receive $342.000 cash from Wilson Company.OOC. Wilson Company will pay Davis Company a $6.840 credit card fee.D. Davis Company will receive $335,160 cash from Wilson Company.

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The data below is for Betts Corporation for the year. Accounts receivable-December 31 Customer accounts written off as uncollectible during the year Allowance for doubtful accounts--January 1 Estimated uncollectible accounts based on an aging analysis If the aging approach is used to estimate bad debts, determine the bad debt expense for the year. Select one: O A. $48,600 B. $48,000 C. $52,200 D. $59,400 O O O $3,216,000 48.000 52,200 63.600

The data below is for Betts Corporation for the year. Accounts receivable-December 31 Customer accounts written off as uncollectible during the year Allowance for doubtful accounts--January 1 Estimated uncollectible accounts based on an aging analysis If the aging approach is used to estimate bad debts, determine the bad debt expense for the year. Select one: O A. $48,600 B. $48,000 C. $52,200 D. $59,400 O O O $3,216,000 48.000 52,200 63.600

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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Beginning balances: Allowance for Doubtful Accounts - $45,000 Accounts Receivable - $3,000,000 Bad Debt percent of credit sales – 1.5% Total Credit Sales – $38,000,000 1) Estimate bad debt expense using percent of sales method 2) Record transaction. 3) Show new adjusted allowance account 4) In January the next year, $48,000 is determined to be uncollectible. Show the entry and adjust accounts.
A recent report for UPS contained the following data: (in thousands) Accounts receivable Less: Allowance for bad debts Net accounts receivable Bad debt expense Current year $1,034,608 36,800 $ 997,808 $55,147 Previous year $ 805,495 38,225 S 767,270 $31,388 Required: 1. Prepare the journal entry for the amount of accounts receivable that were actually written off during the current year. 2. Prepare the journal entry to record the bad debt expense for the current year 3. What is the purpose of the account "Allowance for doubtful accounts"? Although the normal balance of this account is a credit balance, it sometimes has a debit balance. Briefly explain how this can happen.
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Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group Balance Probability ofNoncollection 0-30 days past due $95,000 1% 31-60 days past due 25,000 2% 61-120 days past due 16,000 5% 121-180 days past due 11,000 10% Over 180 days past due 9,000 25% $156,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $1,020 on December 31, before any adjustments. Prepare the adjusting entry for estimated credit losses on December 31. Prepare the journal entry to write off the Rose Company's account on April 10 of the following year in the amount of $925 a. General Journal Date Description Debit Credit Dec.31 Answer Answer Answer Answer Answer Answer To record allowance for credit losses. b.…
Helix reported the following information in its financial statements. Write-offs of accounts receivable were $340 in the current year. Helix did not recover any write-offs. At December 31 Current Year Prior Year Accounts receivable $ 7,800 $ 5,400 Allowance for doubtful accounts 680 490 Accounts receivable, net $ 7,120 $ 4,910 Determine Bad Debts Expense for the current year.
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An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $4,450. If Allowance for Doubtful Accounts has a $1,047 credit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $1,047 b. debit to Bad Debt Expense for $4,450 c. debit to Bad Debt Expense for $3,403 d. credit to Allowance for Doubtful Accounts for $4,450
Recording Entries to Estimate Bad Debt Expense Including the Write-Off and Subsequent Collection of an Account Following are accounts of Long Company at its December 31 year-end for the current year. $25,500 Accounts receivable balance, December 31, prior year Allowance for doubtful accounts balance, December 31, prior year Total sales revenue during the current year (1/6 are on credit) Uncollectible account written off during the current year (A. Smith) Cash collected on accounts receivable during the current year 1,500 480,000 500 85,000 Required Recording Write-off b. Prepare the entry to record bad debt expense for each of the following three cases. • Note: Treat each case separately. 1. Bad debt losses assume 1% of credit sales. Date Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt Recording Bad Debt Expense Account Name Date Dec. 31 Bad Debt Expense Age Less than 30 days 31-90 days Account Name Allowance for Doubtful Accounts To record bad debt 91-120…
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An aging of a company's accounts receivable indicates an estimate of uncollectible accounts of $5,353. If Allowance for Doubtful Accounts has a $1,093 debit balance, the adjustment to journalize the bad debt expense for the period will require a a. debit to Bad Debt Expense for $6,446 b. debit to Bad Debt Expense for $5,353 c. credit to Allowance for Doubtful Accounts for $1,093 d. debit to Bad Debt Expense for $4,260
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) On December 31, a company has outstanding accounts receivable of $69,000, and it estimates that 3% of its receivables will be uncollectible. Prepare the adjusting journal entry at year-end to record bad debts expense if the Allowance for Doubtful Accounts has a: $1,173 credit balance before the adjustment. $345 debit balance before the adjustment.