The trial balance before adjustment of Cyncrewd Inc. shows the following balances: Accounts receivable Allowance for doubtful accounts (AFDA) Credit sales Sales returns Required: Debit P 225,000 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding 35,000 a. Give the entry for bad debt expense for the current year assuming: 1. The allowance should be 4% of gross accounts receivable. 2. Historical records indicate that based on accounts receivable aging the following statistics apply: Balance Credit P 141,000 P 53,500 P 10,500 P 20,000 P 2,340 375,000 Percentage Estimated to be Uncollectible 1% 3% 8% 14% 3. Allowance for doubtful accounts is $2,340, but it is a credit balance, and the allowance should be 2% of total accounts receivable. b. What could account for the unadjusted debit balance in the AFDA account for $2,340?

The trial balance before adjustment of Cyncrewd Inc. shows the following balances: Accounts receivable Allowance for doubtful accounts (AFDA) Credit sales Sales returns Required: Debit P 225,000 0-30 days outstanding 31-60 days outstanding 61-90 days outstanding Over 90 days outstanding 35,000 a. Give the entry for bad debt expense for the current year assuming: 1. The allowance should be 4% of gross accounts receivable. 2. Historical records indicate that based on accounts receivable aging the following statistics apply: Balance Credit P 141,000 P 53,500 P 10,500 P 20,000 P 2,340 375,000 Percentage Estimated to be Uncollectible 1% 3% 8% 14% 3. Allowance for doubtful accounts is $2,340, but it is a credit balance, and the allowance should be 2% of total accounts receivable. b. What could account for the unadjusted debit balance in the AFDA account for $2,340?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $2,500,000. Bad debt expense is estimated at 1/3 of 1% of sales. determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accounts receivable.
Allowance for Doubtful Accounts has a credit balance of $843 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $13,733. Which of the following entries records the proper adjustment for Bad Debt Expense? Select the correct answer. debit Allowance for Doubtful Accounts, $12,890; credit Bad Debt Expense, $12,890 debit Bad Debt Expense, $12,890; credit Allowance for Doubtful Accounts, $12,890 debit Allowance for Doubtful Accounts, $14,576; credit Bad Debt Expense, $14,576 debit Bad Debt Expense, $14,576; credit Allowance for Doubtful Accounts, $14,576
At the end of the current year, Accounts Receivable has a balance of $717,190; Allowance for Doubtful Accounts has a credit balance of $5,712; and sales for the year total $3,403,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
At the end of the current year, Accounts Receivable has a balance of $940,940; Allowance for Doubtful Accounts has a credit balance of $6,235; and sales for the year total $2,902,000. Bad debt expense is estimated at 1/2 of 1% of net sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. c. Determine the net realizable value of accounts receivable.
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accou $148,000, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance f has: (a) a $2,516 credit balance before the adjustment. (b) a $740 debit balance before the adjustment. View transaction list Journal entry worksheet 1 Jhry Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $740 debit balance before the adjustment. <
At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $3,500,000. Bad debt expense is estimated at 1/2 of 1% of net sales. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable
At the end of the current year, Accounts receivable account has a debit balance of $2,700,000 and sales for the year total $32,400,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: The allowance account before adjustment has a debit balance of $27,100. Bad debt expense is estimated at ½ of 1% of sales The allowance account before adjustment has a debit balance of $27,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $128,000. The allowance account before adjustment has a credit balance of $17,900. Bad debt expense is estimated at ¾ of 1% of sales. The allowance account before adjustment has a credit balance of $17,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $279,000.
At the end of the current year, Accounts Receivable has a balance of $90,000; Allowance for Doubtful Accounts has a credit balance of $850; and sales for the year total $300,000. Bad debt expense is estimated at 2.5% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense c. Determine the net realizable value of accounts receivable.
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
Allowance for Doubtful Accounts has a credit balance of $2,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates uncollectible receivables of $19,700. Which of the following entries records the proper adjustment for bad debt expense?
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.
Allowance for Doubtful Accounts has a credit balance of $670 at the end of the year (before adjustment), and an analysis of accounts in the customer ledger indicates the estimated amount of uncollectible accounts should be $16,220. Based on this estimate, which of the following adjusting entries should be made? Select the correct answer. debit Allowance for Doubtful Accounts, $670; credit Bad Debt Expense, $670 debit Bad Debt Expense, $670; credit Allowance for Doubtful Accounts, $670 debit Bad Debt Expense, $15,550; credit Allowance for Doubtful Accounts, $15,550 debit Allowance for Doubtful Accounts, $16,890; credit Bad Debt Expense, $16,890