The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be O $11,500 $10,000 $8,500 O $10,750

The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts receivable resulted in an estimate of $10,000 of uncollectible accounts receivable. Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be O $11,500 $10,000 $8,500 O $10,750

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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The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 320,000 Credit sales $ 800,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 432,000 debit Allowance for doubtful accounts $ 4,300 debit 3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,214,000 and sales for the year total $13,760,000. a. The allowance account before adjustment has a credit balance of $16,400. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $52,500. c. The allowance account before adjustment has a debit balance of $9,100. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $9,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $75,500. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. а. $ b. $ c. $ d. $
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,058,000 and sales for the year total $12,000,000. The allowance account before adjustment has a debit balance of $14,300. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a debit balance of $14,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $45,800. The allowance account before adjustment has a credit balance of $9,200. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a credit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $76,400. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,236,000 and sales for the year total $14,010,000. a. The allowance account before adjustment has a credit balance of $16,700. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,400. c. The allowance account before adjustment has a debit balance of $7,200. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $7,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $59,800. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. а. $ b. $ С. $ d. $
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Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,184,000 and sales for the year total $13,420,000. a. The allowance account before adjustment has a credit balance of $16,000. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,20o. c. The allowance account before adjustment has a debit balance of $9,300. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $9,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $77,200. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. a. $ b. $ c. $ d. $
Domino Company uses the aging of accounts receivable method to estimate uncollectible accounts expense. Domino began Year 2 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $46,310 and $3,650, respectively. During the year, the company wrote off $2,740 in uncollectible accounts. In preparation for the company's Year 2 estimate, Domino prepared the following aging schedule: Number of days past due Receivables amount % Likely to be uncollectible Current $77,000 1% 0-30 28,400 5% 31-60 7,460 10% 61-90 3,920 25% Over 90 3,600 50% Total $120,380 What will Domino record as Uncollectible Accounts Expense for Year 2?
Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts? $8,500 $8,800 $3,800 $8,200
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $992,000 and sales for the year total $11,240,000. a. The allowance account before adjustment has a credit balance of $13,400, Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $13,400. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $42,900. c. The allowance account before adjustment has a debit balance of $8,300. Bad debt expense is estimated at 1/2 of 1% of sales. d. The allowance account before adjustment has a debit balance of $8,300. An aging of the account in the customer lodger indicates estimated doubtful accounts of $68,900. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. b. S C. d.
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