Direct write-off method This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable . Under this method, accounts would be written off only when the receivables from a customer remain uncollectible. To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

Question

Want to see the full answer?

Answer 1

Question

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Hello teacher find correct answer

financial accounting answ

choose best answer me

Answer 2

Question

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Answer 6

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

Answer 7

Chapter 8, Problem 8.5E

(a)

To determine

Direct write-off method

This method does not make allowance or estimation for uncollectible accounts, instead this method directly write-off the actual uncollectible accounts by debiting bad debt expense and by crediting accounts receivable. Under this method, accounts would be written off only when the receivables from a customer remain uncollectible.

To prepare: The journal entry to write-off $1,400 of accounts receivable as uncollectible, under direct write-off method.

Answer 8

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

Answer 9

(b) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 1% of net sales.

Answer 10

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

Answer 11

(b) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 10% of accounts receivable.

Answer 12

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

Answer 13

(c) (1)

To determine

Percentage-of-sales basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of net credit sale for a specific period. Estimated bad debts would be treated as a bad debt expense of the particular period.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expense are expected to be 0.75% of net sales.

Answer 14

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Answer 15

(c) (2)

To determine

Percentage-of-receivables basis:

It is a method of estimating the bad debts (loss on extending credit), by multiplying the expected percentage of uncollectible with the total amount of receivables for a specific period. Estimated bad debts would be treated as a target allowance balance.

To Prepare: The adjusting journal entry for recording the bad debt expense for the year, under allowance method, if bad debt expenses are expected to be 6% of accounts receivable.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 19

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - Prob. 3Q Ch. 8 - Prob. 4Q Ch. 8 - Prob. 5Q Ch. 8 - Prob. 6Q Ch. 8 - Prob. 7Q Ch. 8 - Prob. 8Q Ch. 8 - Prob. 9Q Ch. 8 - Prob. 10Q

Concept explainers

Videos

Want to see the full answer?

Chapter 8 Solutions