The following account balances are those of Music Land Suppl- Accounts Receivahle 43 600
The following account balances are those of Music Land Suppl- Accounts Receivahle 43 600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:b. An aging of the accounts receivable indicates that $6,850 will not be collected. If an amount box does not require an entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
88
1 Dec. 31
2
c. Assume the same facts i (b), except that the balance in Allowance for Doubtful Accounts is a $420 debit before the adjustment. If an amount box does not
entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
88
1 Dec. 31
1
2
d. Assume the same facts as in (a), except that the balance in Allowance for Doubtful Accounts is a $350 debit before the adjustment. If an amount box does not
an entry, leave it blank.
Page: 1
POST.
DEBIT
CREDIT
DATE
DESCRIPTION
REF.
1
1 Dec. 31

Transcribed Image Text:The following account balances are those of Music Land Supply Company as of December 31, the end of the fiscal year, before adjustments.
Accounts Receivable
$ 43,600
Allowance for Doubtful Accounts
180 cr.
Credit Sales
470,000
Required:
Prepare the necessary adjusting entry to record Bad Debt Expense in each of the following independent cases.
a. Uncollectible accounts are estimated at 1.5% of credit sales. If an amount box does not require an entry, leave it blank.
Page: 1
POSTA
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
88
1 Dec. 31
1
2
b. An aging of the accounts receivable indicates that $6,850 will not be collected. If an amount box does not require an entry, leave it blank.
Page: 1
POST.
DATE
DESCRIPTION
DEBIT
CREDIT
REF.
88
1
1 Dec. 31
C. Assume the same facts in (b), except that the balance in Allowance for Doubtful Accounts is a $420 debit before the adjustment. If an amount box does not require
entry, leave it blank.
Page: 1
ROST
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