DOUBTFUL ACCOUNTSA - Percentage of Accounts Receivable ApproachZELDEN GENERAL SERVICES has been operating for 5 years. It is engaged in various Repairs ofequipment and furniture and fixtures on cash basis and on account. Shown below are selectedledger accounts as of December 31, 2021:PSale of services during the year (30% are cash sales)Cash collection on accounts receivable576,930358,700Accounts Receivable, January 1, 2021142,850Allowance for Doubtful Accounts, January 1, 20215,350REQUIRED:Prepare the adjusting entry as of December 31, 2021 under each of the following independentcases.Case 1: 10% of outstanding accounts receivable are estimated to be doubtful of collection.Case 2: The allowance account is to be increased by 13,500.Case 3: The allowance account is to be increased by 7,850.

Allowance for doubtful accounts is the provision created in the books of accounts for the estimated…

ZELDEN GENERAL SERVICES has been operating for 5 years. It is engaged in various Repairs of equipment and furniture and fixtures on cash basis and on account. Shown below are selected ledger accounts as of December 31, 2021: P 576,930 Sale of services during the year (30% are cash sales) Cash collection on accounts receivable 358,700 Accounts Receivable, January 1, 2021 142,850 Allowance for Doubtful Accounts, January 1, 2021 5,350 REQUIRED: Prepare the adjusting entry as of December 31, 2021 under each of the following independent cases. Case 1: 10% of outstanding accounts receivable are estimated to be doubtful of collection. Case 2: The allowance account is to be increased by 13,500. Case 3: The allowance account is to be increased by 7,850.

ZELDEN GENERAL SERVICES has been operating for 5 years. It is engaged in various Repairs of equipment and furniture and fixtures on cash basis and on account. Shown below are selected ledger accounts as of December 31, 2021: P 576,930 Sale of services during the year (30% are cash sales) Cash collection on accounts receivable 358,700 Accounts Receivable, January 1, 2021 142,850 Allowance for Doubtful Accounts, January 1, 2021 5,350 REQUIRED: Prepare the adjusting entry as of December 31, 2021 under each of the following independent cases. Case 1: 10% of outstanding accounts receivable are estimated to be doubtful of collection. Case 2: The allowance account is to be increased by 13,500. Case 3: The allowance account is to be increased by 7,850.

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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