Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 5, Problem 5.16BE
Refer to the information in BE5–17, but now assume that the balance of Allowance for Uncollectible Accounts before adjustment is $4,000 (debit). The company still estimates future uncollectible accounts to be 3% of credit sales for the war. What adjustment would Brinkley record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method?
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A company has net credit sales of $499000 for the year and it estimates that uncollectible accounts will be 3% of its Account Receivables balance. If Allowance for Doubtful Accounts has a credit balance of $2000 prior to adjustment, its balance after adjustment will be a credit of
$16970.
$14970.
$12970.
$14910.
CAN SOMEONE HELP ME FIGURE OUT THE TOTAL ESTIMATED UNCOLLECTIBIES AND THE BAD DEBIT EXPENSE ?
Skysong Company has accounts receivable of $112,400 at March 31, 2020. Credit terms are 2/10, n/30. At March 31, 2020, there is a $1,500 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The company's estimate of bad debts is shown below.
8. Alladin Corporation uses the allowance method in estimating uncollectibles. At the end of the
year, Alladin Corporation estimates that 2% of its credit sales of $1,000,000 will be uncollectible.
Allowance for Doubtful Accounts has a credit balance of $1,000 before adjustment. What is the
amount of the adjusting entry?
a. $20,000
b. $21,000
c. $22,000
d. $19,000
Chapter 5 Solutions
Financial Accounting
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- DVAH Company estimates that 6% of accounts receivable will be uncollectible. The total credit sales for the year 2020 were P1,000,000, accounts receivable as of December 31, 2020 was P200,000 (before any adjustments), and allowance for doubtful accounts is 10,000 before any adjustments. Determine the adjusted balance or the should be balance of the allowance account.arrow_forwardDetermine the following for each case: The amount to be added to Allowance for Doubtful Accounts. The ending balance of the Allowance for Doubtful Accounts. Case (alpha) Credit balance of $700 in the allowance account just prior to adjustment. Using the Analysis of A/R Method indicates doubtful accounts of $8,500. (beta) Credit balance of $800 in the allowance account just prior to adjustment. Uncollectible accounts are estimated at 2% of sales, using the % of Sales Method; and sales totaled $1,000,000 for the year. ANSWERS: Case 1. 2. (alpha) (beta)arrow_forwardAt the end of the year, Brinkley Incorporateď's balance of Allowance for Uncollectible Accounts is $3,200 (debit) before adjustment. The company estimates future uncollectible accounts to be 5% of credit sales for the year. Credit sales for the year total $127,000. What adjustment would Brinkley record for Allowance for Uncollectible Accounts using the percentage-of-credit-sales method? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet > Record the adjusting entry for Allowance for Uncollectible Accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit 1arrow_forward
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Accounts Receivable and Accounts Payable; Author: The Finance Storyteller;https://www.youtube.com/watch?v=x_aUWbQa878;License: Standard Youtube License