**Current Attempt in Progress**Vaughn Manufacturing has outstanding accounts receivable totaling $6.47 million as of December 31 and sales on credit during the year of $24.5 million. There is also a credit balance of $11,500 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?- $388,200- $399,700- $376,700- $1,470,000**Save for Later**Attempts: 0 of 1 used [Submit Answer]

The addition to allowance for doubtfut debts account is calculated as under: = % of expected…

Answered: Vaughn Manufacturing has outstanding…

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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Arlington Cycle Company began operations on January 1, 2020. The company reported the following selected items in its 2021 financial report: 2021 2020 Gross sales $1,400,000 $1,500,000 Accounts receivable 600,000 650,000 Actual bad debt write-offs 22,000 10,000 Arlington estimates bad debts at 2 percent of gross sales. Analyze the activity in the allowance for bad debts T-account, and comment on whether the bad debt estimate has been sufficient to cover the write-offs.
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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
Louise Company has the following balances: Net Credit Sales $ 1,200,000 Accounts Receivable 240,000 Allowance for Doubtful Accounts (beginning balance) 3,000 Uncollectible accounts are estimated to be 6% of the receivables balance. Given this information, what is the company’s estimated bad debt expense for the year?
Wrangler Incorporated uses the percentage of credit sales method to estimate Bad Debt Expense. At the end of the year, the company's unadjusted trial balance inclúdes the following Accounts Receivable $ 353,000 Allowance for Doubtful Accounts (credit balance) 600 Net Credit Sales 904,000 Wrangler has experienced bad debt losses of 0.3% of credit sales in prior periods. What is the Bad Debt Expense to be recorded for the year? Multiple Choice $2.112 $3.912 $2.712 $3.312
Wellington Corphas outstanding accounts receivable totaling €6.5 million as of December 31 and sales on credit during the year of €24 million. There is also a credit balance of €12,000 in the allowance for doubtful accounts. If the company estimates that 8% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year?
Indiana Jones Adventure Tours has the following year-end data; $775,000 in credit sales, $250,000 in accounts receivable, and a $10,000 debit balance in its allowance for doubtful accounts account. It estimates 6% of its accounts receivable will be uncollectible. During the year, the company writes off a $3,000 uncollectible account. What is the company’s bad debt expense for the year? Group of answer choices $15,000 $28,000 $18,000 $25,000
Ervin Company uses the allowance method to account for uncollectible accounts receivable. The allowance account is adjusted based on bad debt expense as a percentage of credit sales. For 2024, net credit sales totaled $5,900,000, and the estimated bad debt percentage is 1.50%. No previously written-off accounts receivable were reinstated during 2024. The allowance for uncollectible accounts had a credit balance of $56,000 at the beginning of 2024 and $47,000, after adjusting entries, at the end of 2024. Required: 1. What is bad debt expense for 2024 as a percent of net credit sales? 2. Assume Ervin makes no other adjustment of bad debt expense during 2024. Determine the amount of accounts receivable written off during 2024. 3. If the company uses the direct write-off method, what would bad debt expense be for 2024?
Libre, Incorporated has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accounts Receivable is $117,000 and the Allowance for Doubtful Accounts has an unadjusted credit balance of $1,350. Net credit sales during the year were $184,000. Using the percentage of credit sales method, what is the estimated Bad Debt Expense for the year? Multiple Choice $9,200 $8.700 $5,850 $9,700 O O
BE9-4 At the end of 2017, Carpenter Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2018, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,200. (a) Prepare the journal entry to record the write-off. (b) What is the cash realizable value of the accounts receivable (1) before the write-off and (2) after the write-off? 11
4. Tooele Company's controller estimated bad debt expense using the percentage of accounts receivable method. Total sales for the year were $500,000 of which 250,000 are on account. The ending balance in accounts receivable was $100,000. An examination of the outstanding accounts at the end of the year indicates that approximately 12 percent of these accounts will ultimately prove to be uncollectible. Before any adjusting entries, the balance in the Allowance for Doubtful Accounts is $700 (CREDIT). Which is part of the correct adjusting entry to record bad debt expense for the year? (The Allowance for Doubtful Accounts is also known as the Allowance for Bad Debts or the Allowance for Uncollectible Accounts.) a. CREDIT Allowance for Bad Debts for $11,300 b. DEBIT Allowance for Bad Debts for $11,300 c. CREDIT Allowance for Bad Debts for $12,000 d. CREDIT Allowance for Bad Debts for $12,700 e. DEBIT Allowance for Bad Debts for $14,700
Information related to Lady Gangster Ltd. For 2021 is summarized below: Total credit sales L5,000,00 Accounts receivable at December 31 1,750,000 Bad debts written off 66,000 Required: b. Assume that Lady Gangster Ltd. estimates its bad debts expense based on 8% of accounts receivable. What amount of bad debts expense will Lady Gangster record if it has an Allowance for Doubtful Accounts credit balance of L6,000?

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