Percent of Sales Method: The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default. Percent of Receivable Method: Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business. To determine : a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues. b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

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Answer 1

Question

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

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Answer 2

Question

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

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Answer 3

Question

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

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Answer 4

Question

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

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Answer 5

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

Answer 6

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

Answer 7

Chapter 9, Problem 17E

To determine

Percent of Sales Method:

The estimated uncollectible accounts under percent of sales method is computed based on expected percentage of sales assumed to be default.

Percent of Receivable Method:

Percent of receivable method is one of the method of computing the estimated bad debt expense during an accounting period. Bad debt expense under percent of receivable method is estimated based of certain percentage of ending accounts receivable of the business.

To determine:

a. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 0.4% of total revenues.

b. Prepare the adjusting entry to record the bad debts expense assuming uncollectible are estimated to be 2.0% of year-end trade receivables.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 9 - Prob. 1DQ Ch. 9 - Why does the direct write-off method of accounting...Ch. 9 - Prob. 3DQ Ch. 9 - Why might a business prefer a note receivable to...Ch. 9 - Prob. 5DQ Ch. 9 - Prob. 6DQ Ch. 9 - Prob. 7DQ Ch. 9 - Prob. 8DQ Ch. 9 - Prob. 9DQ Ch. 9 - Prob. 10DQ

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