Good day again. I just want to ask the solutions of the following questions. Thank you 1. What amount was reported as allowance for doubtfulaccounts on December 31 before adjustment?а. 1,100,000b. 1,150,000с. 1,250,000.d. 1,200,000002. What amount should be reported as required allowancefor doubtful accounts on, December 31?a. 1,650,000ib. 1,950,000с. 1,700,000d. 1,450,0003. What amount should be reported as doubtful accountsexpense for the current year?a. 1,200,000b. 1,650,000900,000d.с.950,0004. What is the year-end adjustment to the allowance fordoubtful accounts on December 31?a. 900,000 debitb. 900,000 creditC. 500,000 debitd. 500,000 credit5. What amount should be reported as net realizable valueof accounts receivable on December 31?a. 9,900,000b. 8,250,000c. 8,350,000d. 8,200,000 No year-end adjustments to the allowance account were made.During the.current year, credit sales totaled P20,000,000,accounts at the amount indicated by the year-end agingFrom inception of operations, Comprehensive Companyin the "over 360 days" aging category, additional accountsEffective with the current year, the entity adopted a newaccounting method for estimating the allowance for doubtfulprovided for uncollectible accounts expense under theThe balance in the allowance for doubtful accounts wasallowance method using the percentage of sales method.No year-end adjustments to the allowance account were madeThe balance in the allowance for doubtful accounts wasP1,000,000 at the beginning of current year.During the.current year, credit sales totaled P20,000,000interim provisions for doubtful accounts were made at 2% ofcredit sales, bad debts of P200,000 were written off, andrecoveries of accounts previously written off amounted toP50,000.An aging of accounts receivable was made for the first timeon December 31.AgingBalanceUncollectible0 -606,000,0002,000,0001,500,000500,00010%61 – 18020%181Over36030%36050%Based on the review of collectibility of the account balancesin the "over 360 days" aging category, additional accounetotaling P100,000 are to be written off on December 31.Effective with the current year, the entity adopted aAaccounting method for estimating the allowance for doubeaccounts at the amount indicated by the vear-end agne'accounts receivable.

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1. What amount was reported as allowance for doubtful accounts on December 31 before adjustment? a. 1,100,000 b. 1,150,000 c. 1,250,000- d. 1,200,000 2. What amount should be reported as required allowance for doubtful accounts on, December 31? a. 1,650,000 b. 1,950,000 c. 1,700,000 d. 1,450,000 3. What amount should be reported as doubtful accounts expense for the current year? a. 1,200,000 b. 1,650,000 900,000 d: c. 950,000

1. What amount was reported as allowance for doubtful accounts on December 31 before adjustment? a. 1,100,000 b. 1,150,000 c. 1,250,000- d. 1,200,000 2. What amount should be reported as required allowance for doubtful accounts on, December 31? a. 1,650,000 b. 1,950,000 c. 1,700,000 d. 1,450,000 3. What amount should be reported as doubtful accounts expense for the current year? a. 1,200,000 b. 1,650,000 900,000 d: c. 950,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...

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Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: A. Journalize the transactions under the direct write-off method. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: C. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
Entries for bad debt expense under the direct write-off and allowance methods Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: A. Journalize the write-offs under the direct write-off method. B. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. C. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts Receivable and the related Allowance for Doubtful Accounts were 1,200,000 and 60,000, respectively. An aging of accounts receivable indicated that 106,000 of the December 31, 2019, receivables may be uncollectible. The net realizable value of accounts receivable at December 31, 2019, was: a. 1,034,000 b. 1,094,000 c. 1,140,000 d. 1,154,000
Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current year, the accounts receivable account of Glenns Nursery Supplies has a debit balance of 390,000. Credit sales are 2,800,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of 1,760. (a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 30,330 in uncollectible accounts. 2. Allowance for Doubtful Accounts has a debit balance of 1,900. (a) The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 29,890 in uncollectible accounts.
UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current year, the accounts receivable account of Parkers Nursery Supplies has a debit balance of 350,000. Credit sales are 2,300,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of 1,920. (a) The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 24,560 in uncollectible accounts. 2. Allowance for Doubtful Accounts has a debit balance of 1,280. (a) The percentage of sales method is used and bad debt expense is estimated to be of 1% of credit sales. (b) The percentage of receivables method is used and an analysis of the accounts produces an estimate of 22,440 in uncollectible accounts.
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
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