QUESTION 122.5 pThe schedule of aging accounts for a Company, at the end of the year 2020, appears below:Accounts ReceivableEstimate % of Bad Debts1%5%Current$20,0001-30 days overdue5,00031-60 days overdueMore than 60 days overdueTotal4,0002,50031,50010%20%The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $400, before the estimate was made.Required: Prepare the adjusting entry to record bad debts expense for 2020.(SHOW YOUR CALCULATIONS)

Accounts Recievable % of Bad Debt Estimated bad debts allowance Current $ 20,000 1% $…

The schedule of aging accounts for a Company, at the end of the year 2020, appears below: Accounts Receivable $20,000 5,000 4,000 Estimate % of Bad Debts Current 1-30 days overdue 31-60 days overdue More than 60 days overdue 1% 5% 10% 2,500 31,500 20% Total The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $400, before th quired: Prepare the adjusting entry to record bad debts expense for 2020.

The schedule of aging accounts for a Company, at the end of the year 2020, appears below: Accounts Receivable $20,000 5,000 4,000 Estimate % of Bad Debts Current 1-30 days overdue 31-60 days overdue More than 60 days overdue 1% 5% 10% 2,500 31,500 20% Total The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $400, before th quired: Prepare the adjusting entry to record bad debts expense for 2020.

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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2 Nissan Inc. prepared an aging of its accounts receivable at December 31,2020 and determined that the net realizable value of the receivables was P250,000. Additional information is available as follows: Allowance for Bad Debts, 12/31/19 - debit balance Accounts written off as uncollectible during 2020 Accounts Receivable at 12/31/20 adjusted Uncollectible accounts recovery during 2020 What is amount of bad debts expense that shall be presented in Nissan's 2020 statement of financial performance? P 28,000 23,000 270,000 5,000
johnson company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectable accounts had a credit balance of $12000 at the begining of 2024. no previously written off accounts recievable were reinstated during 2024. at 12/31/2024, gross accounts recievable totaled $200,100, and prior to recording the adjusting entry to recognize bad debt expenses for 2024, the allowance for uncollectable accounts had a debit balance of $22000. required 1. what was the balance in gross accounts recievable as of 12/31/2023? 2. what journal entry should johnson record to recognize bad debt expense for 2024? 3. assume johnson made no other adjustments of the allowance for uncollectable accounts during 2024. Determine the amount of accounts recievable written off during 2024. 4. if johnson instead used the direct write off method, what would bad debt expense be for 2024?
21. Ebasan Company estimates its doubtful accounts by aging its accounts receivable. The aging schedule of accounts receivable at December 31, 2020 is presented below: Age of Accounts 0-30 days 31-60 days Amount P1,264,800 691,500 61-90 days 288,600 114,975 91-120 days Over 120 days 59,100 Ebasan's uncollectible accounts experience for the past 5 years are summarized in the following schedule: Year 0-30 31-60 61-90 91-120 Over 120 2019 Receivable (Dec 31) P1,968,750 1,500,000 697,500 0.3% 1.8% 12% 38% 65% 2018 0.5% 1.6% 41% 70% 2017 1.5% 0% 50% 69% 0.2% 0.4% 2016 1,224,000 1,7% 10.2% 47% 81% 2015 1,865,500 0.9% 2.0% 9.7% 33% 95% The balance of the allowance for doubtful accounts at December 31, 2020 before adjustment is P126,751. The necessary adjusting journal entry to adjust the allowance for doubtful accounts as of Dec 31,2020 would include: A. A debit to retained earnings of P13,894, B. A debit to doubtful accounts expense P140,644. C. A credit to doubtful accounts expense…
a) Prepare all journal entries to record the activity for the items above for 2020 b) Prepare any journal entries required at December 31, 2020 to record bad debt expense for the year
During 2018, its first year of operations, Pave Construction provides services on account of $144,000. By the end of 2018, cash collections on these accounts total $102,000. Pave estimates that 20% of the uncollected accounts will be bad debts. Record the adjustment for uncollectible accounts on December 31, 2018
QUESTION 1 The schedule of aging accounts for a Company, at the end of the year 2020, appears below: Accounts Receivable $40,000 10,000 5,500 1,800 57,300 Estimate % of Bad Debts Current 1% 1-30 days overdue 31-60 days overdue More than 60 days overdue 5% 10% 20% Total The allowance was estimated by using the schedule of ageing accounts. The allowance account had a debit balance of $600, before the estimate was made. Required: Prepare the adjusting entry to record bad debts expense for 2020.
A company’s year-end balance in accounts receivable is $2,600,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $42,000. An aging of accounts receivable at the end of the year indicates a required allowance of $50,000. If bad debt expense for the year was $52,000, and if credit sales for the year were $8,100,000, and $7,300,000 was collected from credit customers, what was the beginning-of-year balance in accounts receivable?
On January 31, 2020, Allison company wrote off and uncollectible accounts of $8500. The company uses the allowance method for bad debts. The write off would cause total current assets to be? A decreased by $8,500, Increased by $8500 increase by $17,000 or will it remain the same amount?
Innovative Tech Inc. (ITI) uses the percentage of credit sales method to estimate bad debts eachmonth and then uses the aging method at year-end. During November, ITI sold services on accountfor $100,000 and estimated that ½ of one percent of those sales would be uncollectible. At itsDecember 31 year-end, total Accounts Receivable is $89,000, aged as follows: (1) 1–30 days old,$75,000; (2) 31–90 days old, $10,000; and (3) more than 90 days old, $4,000. Experience hasshown that for each age group, the average rate of uncollectibility is (1) 10 percent, (2) 20 percent,and (3) 40 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance forDoubtful Accounts has a $1,600 credit balance at December 31.Required:1. Prepare the November adjusting entry for bad debts.2. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts.3. Prepare the December 31 adjusting entry.4. Show how the various accounts related to accounts…
Accounts Receivable of Power Company during 2020 was $140,000; it's Sales Revenue was $500,000, Sales Return and Allowance $40,000 and Sales Discount $10,000. AFDA has a debit balance of $2,000.The adjusting entry at December 31, 2020 assuming that the expected bad debts are 4% of Accounts Receivable will include: * AFDA $20,000 AFDA $7,600 AFDA $5,600 O AFDA $3,600 O None of the above
On the year end of July 31, 2020, Rainbow Appliances had the following account balances before adjustments for bad debt was made. Net Credit Sales for the period $1,028,000 CR Accounts Receivable $656,000 DR AFDA $1,900 DR Do not enter dollar signs or commas in the input boxes. a) Use the year-end balances reported on the balance sheet and the aging schedule shown below to calculate the allowance for doubtful accounts. Aging Category Bad Debt % Balance Estimated Bad Debt Less than 30 days 2% $422,000 31-60 days 4% $105,000 61-90 days 11% $75,000 91-120 days 28% $37,000 Over 120 days 52% $17,000 Total $656,000 Prepare the journal entry to record bad debt expense for the year: Date Account Title and Explanation Debit Credit Jul 31 To record bad debt expense b) Assume instead that Rainbow Appliances used the income statement approach for estimating bad debt. If historical data indicates that approximately 2% of net credit sales are uncollectible, what amount is expected to be…