The trial balance before adjustment of Concord Company reports the following balances: Dr. Cr. Accounts receivable $265,000 Allowance for doubtful accounts $2,480 Sales (all on credit) 1,000,000 Sales returns and allowances 48,000 Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 11% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,480 instead of a credit balance. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
The trial balance before adjustment of Concord Company reports the following balances: Dr. Cr. Accounts receivable $265,000 Allowance for doubtful accounts $2,480 Sales (all on credit) 1,000,000 Sales returns and allowances 48,000 Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 11% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,480 instead of a credit balance. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
The trial balance before adjustment of Concord Company reports the following balances:
| Dr. | Cr. | |||
| $265,000 | ||||
| Allowance for doubtful accounts | $2,480 | |||
| Sales (all on credit) | 1,000,000 | |||
| Sales returns and allowances | 48,000 |
Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 11% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
Assume that all the information above is the same, except that the Allowance for Doubtful Accounts has a debit balance of $2,480 instead of a credit balance. Prepare the journal entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|
|
|
|
|
|
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