
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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$16970. |
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$14970. |
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$12970. |
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$14910. |
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- At the end of the current year, Accounts receivable account has a debit balance of $2,700,000 and sales for the year total $32,400,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: The allowance account before adjustment has a debit balance of $27,100. Bad debt expense is estimated at ½ of 1% of sales The allowance account before adjustment has a debit balance of $27,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $128,000. The allowance account before adjustment has a credit balance of $17,900. Bad debt expense is estimated at ¾ of 1% of sales. The allowance account before adjustment has a credit balance of $17,900. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $279,000.arrow_forwardAt year end, Accounts Receivable had a balance of $820,000 and it is estimated that 4% of accounts receivable will be uncollectible. The Allowance for Bad Debts account has a credit balance of $5,000 and the company use the percent of receivables method to record bad debts expense. The adjusted balance in the Allowance for Bad Debts account should be a credit of OA. $37,600 OB. $32,600 OC. $27,800 OD. $32,800arrow_forwardAt December 31, Gill Co. reported accounts receivable of $294,000 and an allowance for uncollectible accounts of $1,050 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $11,760. $10,710. $9,220. $1,050.arrow_forward
- How do I solve this?arrow_forwardIvanhoe Company provides for doubtful accounts based on 4.0% of credit sales. The following data are available for 2020: Credit sales during 2020 $3,020,000 Allowance for doubtful accounts 1/1/20 37,700 Collection of accounts written off in prior years (customer credit was re-established) 15,500 Customer accounts written off as uncollectible during 2020 36,100 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/20 $Enter your answer in accordance to the question statementarrow_forwardAfter the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net expected realizable value of the accounts receivable? $25,000 O $450,000 O $455,000 $425,000arrow_forward
- One company has a credit balance of $1530 in its allowance for doubtful accounts before any adjustments are made at the end of the year. Based on review and aging of its accounts receivable at the end of the year, One company estimates that $1545 of its receivables are uncollectible. As a result it will debit Bad Debts Expense for what amount?arrow_forwardAssume Simple Company had credit sales of $243,000 and cost of goods sold of $143,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $180. Required: What amount of Bad Debt Expense would the company record as an end-of-period adjustment?arrow_forwardCredit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. It is estimated that 2% of all credit sales are eventually uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts? $8,500 $8,800 $3,800 $8,200arrow_forward
- Pina Colada Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $270000 and credit sales are $2710000. Management estimates that 3% of accounts receivable will be uncollectible. What adjusting entry will Pina Colada Corp. make if the Allowance for Doubtful Accounts has a credit balance of $2700 before adjustment?arrow_forwardHarlan Company uses the Allowance method for accounting for receivables. They had the following information as of December 31, 2022: Net Credit Sales, year 2022 6,867,750 Accounts Receivable, December 31, 2021 655,000 Accounts Receivable, December 31, 2022 745,000 Allowance for Doubtful Accounts, December 31, 2022 4,350 Credit Harlan Company estimates that 2% of the Accounts Receivable will become uncollectible. What are some things that a company can do to improve the collection of its Accounts Receivable? On January 7, 2023 it was determined that Bundy Company’s account in the amount of $3,800 will be uncollectible. Prepare the entry to write off the Bundy Company account. What is the Cash Realizable Value of the receivables after the write-off of the Bundy Company account?arrow_forwardAt December 31, Gill Co. reported accounts receivable of $281,000 and an allowance for uncollectible accounts of $1,600 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 3% of accounts receivable. The amount of the adjustment for uncollectible accounts would be: Multiple Choice $8,340. $1,600. $8,430. $6,830.arrow_forward
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