trial balance at December 31, 2020: Debit Credit Accounts receivable P5,000,000 Allowance for doubtful accounts 150,000 Net credit sales P20,000,000 EXCELLENT estimates that 5% of credit sales will become uncollectible. The allowance for doubtful accounts for the year ended December 31, 2020 should he

trial balance at December 31, 2020: Debit Credit Accounts receivable P5,000,000 Allowance for doubtful accounts 150,000 Net credit sales P20,000,000 EXCELLENT estimates that 5% of credit sales will become uncollectible. The allowance for doubtful accounts for the year ended December 31, 2020 should he

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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Beginning balances: Allowance for Doubtful Accounts - $45,000 Accounts Receivable - $3,000,000 Bad Debt percent of credit sales – 1.5% Total Credit Sales – $38,000,000 1) Estimate bad debt expense using percent of sales method 2) Record transaction. 3) Show new adjusted allowance account 4) In January the next year, $48,000 is determined to be uncollectible. Show the entry and adjust accounts.
QUESTION 5 2020 Net credit sales $100,000. Estimate of doubtful debts 1% of net credit sales $1,800 before the estimate was made $40,000. Allowance account credit balance Gross Accounts receivable Required: Prepare the adjusting entry to record bad debts expense for 2020 using the percentage of sales method.
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ABC Inc.'s accounting records disclose the following: P 1,800,000 Accounts receivable, January 1, 2021 Allowance for doubtful accounts, January 1, 2021 (credit balance) Sales for the year Collections from customers during the year 90,000 15,000,000 13,080,000 The following additional information was also obtained: > Included in the amount collected from customers was the recovery of P30,000 receivable from a customer whose account had been charged off as worthless in the prior year. > ABC determined that its receivable from a customer of P150,000 will not be collected, and management authorized its writeoff. > A customer settled its account on December 2, 2021 by issuing a 12%, 6-month note for P600,000. > The accounts receivable balance on December 31, 2021 includes P900,000 past due accounts. > The entity estimated that 20% of past due accounts will not be collected and 5% of the current accounts will not be collected as well. QUESTIONS: (Show your supporting computations in GOOD…
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Accounts receivable has a balance of 500,000 It is estimated that 50% of this is uncollectible. Allowance for Bad Debt has a balance of P 10,500. What is the adjusting entries at December 31,2019?
Debit Accounts receivable $730000 Allowance for uncollectible accounts 7500 Net credit sales Credit O $47750 O $145000. $36500, O $133750. $2900000 Bonita estimates that 5% of the gross accounts receivable will prove to be uncollectible. After adjustment at December 31, 2025, the allowance for uncollectible accounts should have a credit balance of
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Age of Accounts Balance, June 30 Estimated Percentage Uncollectible 1-30 days $130,000 2.00% 31-60 days 70,000 5.00% 61-90 days 32,500 20.00% Over 90 days 3,000 50.00% If the opening balance of Allowance for Doubtful accounts is $7,050, the entries to record estimated uncollectible receivables this year will be: Select one: a. Bad debt expense $7,050 Allowance for doubtful accounts $7,050 b. Allowance for doubtful accounts $14,100 Account receivable $14,100 c. Bad debt expense $14,100 Allowance for doubtful accounts $14,100 d. Account receivable $7,100 Bad debt expense $7,100
8. For the year ended, December 31, 2020, GERBERA Company estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/20 -₱56,000; Provision for uncollectible accounts during 2020 ( 2% on credit sales of ₱2,000,000) -₱40,000; Uncollectible accounts are written off, 11/30/20 -₱46,000; Estimated uncollectible account per aging, 12/31/20 -₱69,000. After the year-end adjustment, the uncollectible accounts expense for 2020 should be? * PLEASE SHOW YOUR SOLUTIONS IN GOOD ACCOUNTING FORM. THANK YOU
Problem 5-18 (PHILCPA Adapted) P80,000. Recoveries Credit sales Writeoffs 260,000 295,000 300,000 310,000 22,000 37,000 36,000 40,000 2017 11,100,000 12,250,000 14,650,000 15,000,000 2018 2019 2020 The collections from customers during 2020 totaled P14,000,000, excluding recoveries. Doubtful accounts are provided for as a percentage of credit sales. The entity calculated the percentage annually by using the experience of the three years prior to the current year. 1. What amount should be reported as doubtful accounts expense for 2020? a. 310,000 b. 300,000 c. 222,000 d. 378,000 2. What amount should be reported as allowance for doubtful accounts on December 31, 2020? a. 110,000 b. 378,000 c. 300,000 d. 478,000 im 3. What is the net realizable value of accounts receivable on December 31, 2020? a. 2,650,000 b. 2,690,000 c. 2,760,000 d. 2,800,000 158
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