Need answer the question The following accounts were taken from Robot Company's unadjusted trial balance on December31, 2014:Accounts ReceivableDebitCredit$1,000,000Allowance for Doubtful Accounts 8,000Net Credit Sales$3,000,000Robot estimates that 3% of gross accounts receivable will become uncollectible. After adjustmenton December 31, 2014, the allowance for doubtful accounts should have a credit balance of:a. $90,000b. $82,000c. $38,000d. $30,000

Step 1: Define Account ReceivableA company's rights against third parties for the prior delivery of…

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College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 2CE: Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit...

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Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
Using data in Exercise 9-9, assume that the allowance for doubtful accounts for Waddell Industries has a credit balance of 6,350 before adjustment on August 31. Journalize the adjusting entry for uncollectible accounts as of August 31. Waddell Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 9-8. The accounts receivable clerk for Waddell Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: a. Determine the number of days past due for each of the preceding accounts as of August 31. b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
The following accounts were abstracted from Todd Company's unadjusted trial balance at December 31: Accounts Receivable Allowance for Doubtful Accounts Net Credit Sales Select one: Todd Company estimates that 2% of net credit sales will become uncollectible. After adjustment at December 31, the Bad Debt Expense should have a balance of: a. $26,000 Debit $800,000 b. $60,000 Dic. $70,000 Od. $32,000 e. $86,000 Credit 10,000 $3,000,000
Manchester Company provided the following accounts abstracted from the unadjusted trial balance on December 31, 2014: Accounts receivable: 5,000,000 Debit Allowance for doubtful accounts: 40,000 Credit Net credit sales: 20,000,000 Credit The entity estimated that 3% of the gross accounts receivable will become uncollectible. What amount should be recognized as doubtful accounts expense for 2014?
The following accounts were abstracted from EXCELLENT Company's unadjusted trial balance at December 31, 2020: Debit Credit Accounts receivable P5,000,000 Allowance for doubtful accounts 150,000 Net credit sales P20,000,000 EXCELLENT estimates that 5% of credit sales will become uncollectible. The allowance for doubtful accounts for the year ended December 31, 2020 should be
6. The following are the balances of December 31, 2017 of the following accounts: Accounts Receivable Allowance for doubtful accounts 1,000,000.00 50,000.00 5,000,000.00 Credit sales a. Allowance for doubtful accounts should be based on 8% of account receivable. b. Allowance for doubtful accounts should be based on aging of account of 90,000. c. Allowance for doubtful accounts should be set up on 2% of credit sales. Required: 1. Prepare adjusting entry of the above transactions (A, B, C are independent to each other) 2. Compute the net realizable value of each assumption (A,B,C)
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Gabby Renovation has a total accounts receivable of $600,000. Its analysis indicates that $30,000 of accounts receivable will be uncollectible. The Allowance for Doubtful Accounts has a credit balance of $8,000. What is the adjusting entry to the Allowance for Doubtful Accounts? O a Debit of $30,000 Credit of $22,000 Credit of $30,000
The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?
The following accounts are available from the unadjusted trial balance of the company at December 31, 2021: Accounts Receivable – P10,000,000 debit; Allowance for doubtful accounts – P80,000 debit; Net credit sales – P40,000,000 credit. The company estimates that 3% of the gross accounts receivable will become uncollectible. After the adjustment at December 31, 2021, the allowance for doubtful accounts should have a credit balance of how much?
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