Which of the following would be the correct journal entry to recordthe allowance for doubtful accounts under the percentage of salesmethod if, Net Credit Sales are $500,000 and management estimatesthe credit losses to be 2% of net credit sales?Debit Accounts Receivable 10,000Credit Allowance for Doubtful Accounts 10,000Debit Allowance for Doubtful Accounts 10,000Credit Accounts Receivable 10,000Debit Allowance for Doubtful Accounts 10,000Credit Bad Debts Expense 10,000Debit Bad Debts Expense 10,000Credit Allowance for Doubtful Accounts 10,000

Under allowance method of bad debts recognition we use bad debt expense and allowance for doubtful…

Answered: Which of the following would be the…

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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What is the Final amount of bad debts which to be debited for: Show all your workings, dont reject this is complete question only.
Net credit sales $831, 400 Account Receivable 222,850 Allowance for Doubtful Account 0. Do the following: Compute bad debt estimation using the income method, where the percentage uncollectible is 5%. Prepare the journal entry for the income statement method bad debt estimation. Compute bad debt estimation using the balance sheet method of percentage of receivables, where the percentage uncollectible is 9%. Prepare the journal entry for the balance sheet method bad debt estimation.
22. The unadjusted trial balance of Serrano Company at December 31, 20XX included the following accounts: Debit Credit Allowance for doubtful accounts 16,000 Sales 7,225,000 Sales return 125,000 Serrano estimates its uncollectible receivables at 2% of net sales. What should be reported as doubtful accounts expense for 20XX?
ABC Company reported the following balances: Debit Credit Accounts Receivable 5,000,000 Allowance for doubtful accounts - before adjustment 50,000 Sales 12,000,000 ABC Company is choosing from the following on what method to use in measuring the accounts receivable's net realizable value: Percentage of Sales 2% Percentage of accounts receivable 5% Per aging schedule 220,000 Based on the information above, compute for the following: Doubtful accounts expense using the percentage of sales method Net realizable value of Accounts receivable under the percentage of sales method Doubtful accounts expense using the percentage of gross receivables method Net realizable value of Accounts receivable under the percentage of gross receivables Doubtful accounts expense using an aging of receivables Net realizable value of Accounts receivable per the aging schedule
d) The trial balance before adjustment of Braxton Inc. shows the following balances. DEBIT CREDIT Accounts receivable $170,000 Allowance for doubtful accounts 1,750 Net Credit Sales $1,280,000 Journalize the Bad Debt Expenses assuming: i. 1.2% of Sales will be uncollectible ii. iii. 9% of gross accounts receivable will be uncollectible the same as part ii above instead there is a credit balance in Allowance for doubtful accounts of $1,700 and collected $2,100 from an account previously written off.
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Uncollectible Accounts-Percentage of Sales and Percentage of Receivables At the completion of the current fiscal year ending December 31, the balance of Accounts Receivable for Yang's Gift Shop was $30,000. Credit sales for the year were $355,200. Required: Make the necessary adjusting entry in general journal form under each of the following assumptions. Show the calculation for net realizable value. 1. Allowance for Doubtful Accounts has a credit balance of $330. a. The percentage of sales method is used and bad debt expense is estimated to be 2% of credit sales. Page: DOC. POST. NO. REF. DATE ACCOUNT TITLE DEBIT CREDIT 20-- 1 Dec. 31 88 Bad Debt Expense V 2 Allowance for Doubtful Accounts - 2. 3 Feedback Accounts receivable, December 31, 20-- Less allowance for doubtful accounts Net realizable value Feedback b. The percentage of receivables method is used and an analysis of the accounts produces an estimate of $6,950 in uncollectible accounts. Page: DOC. POST. NO. REF. DATE ACCOUNT…
Bad Debt Expense: Percentage of Credit Sales Method Bradford Plumbing had the following data for a recent year: Credit sales $547,900 Allowance for doubtful accounts, 1/1 (a credit balance) 8,740 Accounts receivable, 1/1 42,340 Collections on account receivable 489,770 Accounts receivable written off 14,250 Bradford estimates that 2.7% of credit sales will eventually default. Required: 1. Compute bad debt expense for the year (rounding to the nearest whole number).$fill in the blank 1 2. Determine the ending balances in accounts receivable and allowance for doubtful accounts. Ending Balance Accounts receivable $fill in the blank 2 Allowance for doubtful accounts $fill in the blank 3
The following balances were gathered from WAP Company's trial balance: Credit sales 2,000,000 Accounts receivable, beg 200,000 Accounts receivable, end 1,200,000 Beginning balance of the allowance for doubtful accounts is P10,000. The company's policy is to recognize doubtful accounts as 2% of credit sales. Determine the amount of bad debt expense that should be recognized for the period.
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The allowance for uncollectible accounts currently has a credit balance of $200 the company's management estimates that 2.5% of net credit sales will be uncollectible net credit sales or 115, 000 what will be the balance of allowance for collectible accounts reported on the balance sheet once the adjustment is made assuming the percent of sales method is used

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