The trial balance before adjustment of Buffalo Inc. shows the following balances. Dr. Cr. Accounts Receivable $95,400 Allowance for Doubtful Accounts 1,855 Sales Revenue (all on credit) $720,800 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,805 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a)

The trial balance before adjustment of Buffalo Inc. shows the following balances. Dr. Cr. Accounts Receivable $95,400 Allowance for Doubtful Accounts 1,855 Sales Revenue (all on credit) $720,800 Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,805 credit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a)

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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At year end, Accounts Receivable had a balance of $820,000 and it is estimated that 4% of accounts receivable will be uncollectible. The Allowance for Bad Debts account has a credit balance of $5,000 and the company use the percent of receivables method to record bad debts expense. The adjusted balance in the Allowance for Bad Debts account should be a credit of OA. $37,600 OB. $32,600 OC. $27,800 OD. $32,800
Allowance for Doubtful Accounts has a debit balance of $439 at the end of the year (before adjustment), and Bad Debt Expense is estimated at 1% of sales. If net credit sales are $928,100, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a.$8,842 b.$9,720 c.$439 d.$9,281
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The unadjusted trial balance of ABC Company reports the following balances at the end of the year: Dr Cr Accounts receivable $50,000Allowance for doubtful accounts $ 2,000 Sales (all on credit) 100,000Sales returns and allowances 25,000Sales discounts 5,000Instructions:Prepare the journal entry to record bad debt expense assuming that bad receivables are estimated to be 5% of ending accounts receivable.
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