The following information is available for possible adjustments:1. The uncollectible accounts were determined to be P375 as of December 31.2. A diagnostic fee paid by a client was taken by Kualitas as withdrawal, P1,250. The income and withdrawal were not recorded PROBLEM IKUALITAS LABORATORYTRIAL BALANCEDECEMBER 31, 2020DEBIT1,25011,50039,1257,500337,500CREDITCashAccounts ReceivableMedical SuppliesPrepaid InsuranceLaboratory EquipmentAccumulated Depreciation-Laboratory EquipmentAccounts PayableUnearned Diagnostic FeesKualitas, CapitalDiagnostic Fes IncomeSalaries and Wages ExpenseRent ExpenseTOTAL75,0003,8755,000137,500275,50072,50027,500496,875496,875

The adjustment entries are passed at the end of the reporting period to record the adjustments like…

The following information is available for possible adjustments: 1. The uncollectible accounts were determined to be P375 as of December 31. 2. A diagnostic fee paid by a client was taken by Kualitas as withdrawal, P1,250. The income and withdrawal were not recorded

The following information is available for possible adjustments: 1. The uncollectible accounts were determined to be P375 as of December 31. 2. A diagnostic fee paid by a client was taken by Kualitas as withdrawal, P1,250. The income and withdrawal were not recorded

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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Allowance for Uncollectible Accounts is a contra asset account, which means that its normal balance is a credit. However, it is possible for the account to have a debit balance before year-end adjustments are recorded. Explain how this could happen. How does an accountant calculate the year-end adjustment for Allowance for Uncollectible Accounts with a debit balance before year-end adjustments recorded? Please explain both answers in good detail answer
Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $410 in Allowance for Doubtful Accounts just prior to adjustment. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $7,690. Amount added Ending balance b. Credit balance of $410 in Allowance for Doubtful Accounts just prior to adjustment. Bad debt expense is estimated at 1% of credit sales, which totaled $1,032,000 for the year. Amount added Ending balance LA ?
Moving to another ques uestion 12 On March 1, a customer's account balance of $32,300 was deemed to be uncollectible. What entry should be recorded on March 1 to record the write-off assuming the company uses the allowance method? O Debit Bad Debts Expense $32,300; credit Accounts Receivable $32,300 O Debit Allowance for Doubtful Accounts $32,300; credit Accounts Receivable $32,300 O Debit Accounts Receivable $32,300; credit Bad Debts Expense $32,300 O Debit Allowance for Doubtful Accounts $32,300; credit Bad Debts Expense $32,300 Question 12 of 15 >>>>
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