Wolfe, Inc. had credit sales for the period of $146,000. The balance in Allowance for Doubtful Accounts is a debit of $663. If Wolfe estimates that 5% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts?O A. Debit Bad Debt Expense, $7,300; credit Allowance for Uncollectible Accounts, $7,300.O B. No entry is required.O C. Debit Bad Debt Expense, $6.637; credit Allowance for Uncollectible Accounts, $6.637.O D. Debit Bad Debt Expense, $7,963; credit Allowance for Uncollectible Accounts, S7,963.

The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Answered: Wolfe, Inc. had credit sales for 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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Please do not provide answer not image formate thank you. A company reports a year end credit sales in the amount of 390,000 and accounts receivable of $85,500. The company uses the balance sheet method to report bad debt estimation. The estimation percentage is 3.5%. There is a current debut balance of $2,000 in the bad debt account and a $2,000 credit balance in the allowance for doubtful accounts. Record the journal entry using the income statement method. Then record this transaction using T accounts. edit: The transaction is to be recorded with the balance sheet method and not the income statement method*
3. Suppose you have the following information Accounts Receivable balance 50,000. Estimated uncollectable accounts 4% of accounts receivable. previous allowance for doubtful accounts credit balance 2,500. prepare the necessary adjusting journal entry. *
At the end of the current year, Accounts Receivable has a balance of $195,120; Allowance for Doubtful Accounts has a debit balance of $4,422; and sales for the year total $1,086,000. Bad debt expense is estimated at 3% of sales. a. Determine the amount of the adjusting entry for bad debt expense.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts fill in the blank 3 Bad Debt Expense fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
Charleston, Incorporated has Accounts Receivable of $260,000 and an Allowance for Doubtful Accounts of $16,000. If it writes-off a customer account balance of $1,600, what is the amount of its net accounts receivable? Multiple Choice $260,000 $242,400 $244,000 $258,400
Required information [The following information applies to the questions displayed below.] On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Expected Percent Uncollectible 1.20% Accounts Receivable $ 820,000 328,000 65,600 32,800 13,120 Accounts Receivable Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31. X Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X X Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due X X Percent Uncollectible (#.##%) || = = = 1.95 6.45 32.50 67.00 = Estimated Uncollectible
Present the journal entry necessary to record each of the following items; assuming King Company uses the Allowance method of accounting for Uncollectible Accounts (Bad Debts). 1. Uncollectible Accounts Expense for the year is estimated to be 6% of Net Sales. Net Sales for the year are $100,000 and the Allowance account has a $600 credit balance 2. A $20,000 note is received from a customer on account. 3. The $800 balance in an individual customer's account is written off as uncollectible. 4. The company received $200 from a customer whose account had been previously written off as uncollectible. 5
Munabhai
idiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 200 debit balance, the company should record a elect one: O a. None of the answers are correct O b. debit to Bad Debt Expense for RO 5,300. O c credit to Allowance for Doubtful Accounts for RO 6,500. O d. debit to Allowance for Doubtful Accounts for RO 5,300. O e. credit to Bad Debt Expense for RO 7,700.
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.
Assume Simple Company had credit sales of $243,000 and cost of goods sold of $143,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $180. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
The trial balance before adjustment of Monty Inc. shows the following balances. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) (a) Dr. (b) $106,200 2,065 Cr. Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,955 credit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation $802,400 Debit Credit
Please

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