Warner Company's year-end unadjusted trial balance shows accounts receivable of $106,000, allowance for doubtful accounts of $670 (credit), and sales of $350,000. Uncollectibles are estimated to be 1% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles. No 1 Date December 31 Answer is complete but not entirely correct. General Journal Bad debts expense Allowance for doubtful accounts ›› Debit 390 x Credit 390 X

Warner Company's year-end unadjusted trial balance shows accounts receivable of $106,000, allowance for doubtful accounts of $670 (credit), and sales of $350,000. Uncollectibles are estimated to be 1% of sales. Prepare the December 31 year-end adjusting entry for uncollectibles. No 1 Date December 31 Answer is complete but not entirely correct. General Journal Bad debts expense Allowance for doubtful accounts ›› Debit 390 x Credit 390 X

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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Percent of sales method At year-end, December 31, Ying Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Ying records its Bad Debts Expense for that estimate. 1. Prepare the journal entry to record bad debts. 2. Compute the ending balance of the Allowance for Doubtful Accounts if it has a $5,000 beginning credit balance.
Coronet Suppliers uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $80,500, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Account has: (a) a $1,369 credit balance before the adjustment. (b) a $403 debit balance before the adjustment. View transaction list Journal entry worksheet 1 2 Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $1,369 credit balance before the adjustment. ansaction (a) te: Enter debits before credits. General Journal Debit Credit
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