The Phillips Company gathered the following information pertaining to its year ended December 31, 2020 prior to any adjustments:  Net Sales for the Year                                          $780,000 Accounts Receivable, 12/31                                   165,000    Allowance for Uncollectible Accounts, 12/31          2,200 Debit Assume that Phillips uses the percentage of outstanding accounts receivable method for uncollectible amounts.  An aging of accounts receivable indicates that $9,550 will be uncollectible.  Phillips will report the following amounts in its 2020 financial statements: Select one: a. Bad debts expense $11,750; Net accounts receivable $155,450 b. Bad debts expense $9,550; Net accounts receivable $155,450 c. Bad debts expense $9,550; Net accounts receivable $157,650 d. Bad debts expense $1,750; Net accounts receivable $157,650 e. Bad debts expense $7,350; Net accounts receivable $157,650

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Practice Pack

The Phillips Company gathered the following information pertaining to its year ended December 31, 2020 prior to any adjustments:

 Net Sales for the Year                                          $780,000

Accounts Receivable, 12/31                                   165,000   

Allowance for Uncollectible Accounts, 12/31          2,200 Debit

Assume that Phillips uses the percentage of outstanding accounts receivable method for uncollectible amounts.  An aging of accounts receivable indicates that $9,550 will be uncollectible.  Phillips will report the following amounts in its 2020 financial statements:

Select one:

a. Bad debts expense $11,750; Net accounts receivable $155,450
b. Bad debts expense $9,550; Net accounts receivable $155,450
c. Bad debts expense $9,550; Net accounts receivable $157,650
d. Bad debts expense $1,750; Net accounts receivable $157,650
e. Bad debts expense $7,350; Net accounts receivable $157,650
Expert Solution
trending now

Trending now

This is a popular solution!

video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education