Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 7, Problem 6QS
Percent of
Warner Company’s year-end unadjusted
- Prepare the December 31 year-end
adjusting entry for uncollectible. - What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $300?
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Percent of sales method
At the end of the current year, Accounts Receivable has a balance of $745,000; Allowance for Doubtful Accounts has a credit balance of $6,500;
and sales for the year total $3,350,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry for uncollectible accounts.
$
X
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
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Allowance for Doubtful Accounts
$
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Bad Debt Expense
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c. Determine the net realizable value of accounts receivable.
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Percent of Sales Method
At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,230,000. Bad debt expense is estimated at 1/4 of 1% of sales.
a. Determine the amount of the adjusting entry for uncollectible accounts.$
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
Accounts Receivable
$
Allowance for Doubtful Accounts
$
Bad Debt Expense
$
c. Determine the net realizable value of accounts receivable.$
Analysis of Receivables Method
At the end of the current year, Accounts Receivable has a balance of $890,000; Allowance for Doubtful Accounts has a credit balance of $8,000; and sales for the year total $4,010,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $36,800.
a. Determine the amount of the adjusting entry for uncollectible accounts.$
b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
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Allowance for Doubtful Accounts
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Bad Debt Expense
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c. Determine the net realizable value of accounts receivable.$
Chapter 7 Solutions
Financial and Managerial Accounting
Ch. 7 - Prob. 1MCQCh. 7 - Prob. 2MCQCh. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQ
Ch. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1QSCh. 7 - Prob. 2QSCh. 7 - Prob. 3QSCh. 7 - QS 7-4 Distinguishing between allowance method and...Ch. 7 - QS 7-5 Allowance method for bad debts P2
Gomez...Ch. 7 - Percent of accounts receivable method P3 Warner...Ch. 7 - Prob. 7QSCh. 7 - Prob. 8QSCh. 7 - Prob. 9QSCh. 7 - Prob. 10QSCh. 7 - Prob. 11QSCh. 7 - Prob. 12QSCh. 7 - Prob. 13QSCh. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Exercise 7-8 Percent of receivables method P3...Ch. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - Exercise 7-14 Dishonoring a note P4 Prepare...Ch. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - Prob. 17ECh. 7 - Prob. 1PSACh. 7 - Prob. 2PSACh. 7 - Prob. 3PSACh. 7 - Prob. 4PSACh. 7 - Prob. 5PSACh. 7 - Prob. 1PSBCh. 7 - Prob. 2PSBCh. 7 - Prob. 3PSBCh. 7 - Prob. 4PSBCh. 7 - Prob. 5PSBCh. 7 - Prob. 7SPCh. 7 - Prob. 1GLPCh. 7 - Prob. 1BTNCh. 7 - Prob. 2BTNCh. 7 - Anton Blair is the manager of a medium-size...Ch. 7 - Prob. 4BTNCh. 7 - Prob. 5BTNCh. 7 - Prob. 6BTNCh. 7 - Prob. 7BTNCh. 7 - Prob. 8BTNCh. 7 - Prob. 9BTN
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