ADF Manufacturing was formed in 2015 with the merger of Miller Foods Corporation and Rogala Foods Incorporated. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): Accounts Receivable Allowance for Doubtful Accounts Debits $1,020 Credits $20 17,300 Required: 1. Assume ADF uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. 2. Assume instead ADF uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Assume instead ADF's uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense assuming ADF's unadjusted balance in Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $40. 4. If one of ADF's customers declared bankruptcy, what journal entry would be used to write off its $10 balance?
ADF Manufacturing was formed in 2015 with the merger of Miller Foods Corporation and Rogala Foods Incorporated. The company reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions): Accounts Receivable Allowance for Doubtful Accounts Debits $1,020 Credits $20 17,300 Required: 1. Assume ADF uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required for the year, assuming no Bad Debt Expense has been recorded yet. 2. Assume instead ADF uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense. 3. Assume instead ADF's uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense assuming ADF's unadjusted balance in Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $40. 4. If one of ADF's customers declared bankruptcy, what journal entry would be used to write off its $10 balance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Bok
t
ces
ADF Manufacturing was formed in 2015 with the merger of Miller Foods Corporation and Rogala Foods Incorporated. The company
reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions):
Debits
$ 1,020
Credits
$ 20
17,300
Accounts Receivable
Allowance for Doubtful Accounts
Sales (assume all on credit)
Required:
1. Assume ADF uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry
required for the year, assuming no Bad Debt Expense has been recorded yet.
2. Assume instead ADF uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be
uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense.
3. Assume Instead ADF's uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be
uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense assuming ADF's:
unadjusted balance in Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $40.
4. If one of ADF's customers declared bankruptcy, what journal entry would be used to write off its $10 balance?
Complete this question by entering your answers in the tabs below.
Required 3 Required 4
Required 1 Required 2
Assume ADF uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required
for the year, assuming no Bad Debt Expense has been recorded yet. [If no entry is required for a transaction/event, select "No Journal
Entry Required in the first account field. Enter your answers in millions (.e., 10,000,000 should be entered as 10). Round your answers
to the nearest whole number)
Show less A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ea1f414-2cfa-4d12-9b16-9c9fcbba0754%2F089fc41d-e0f8-4c93-813c-c1b991365cea%2Fnr104bc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bok
t
ces
ADF Manufacturing was formed in 2015 with the merger of Miller Foods Corporation and Rogala Foods Incorporated. The company
reported the following rounded amounts for the year ended December 29, 2018 (all amounts in millions):
Debits
$ 1,020
Credits
$ 20
17,300
Accounts Receivable
Allowance for Doubtful Accounts
Sales (assume all on credit)
Required:
1. Assume ADF uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry
required for the year, assuming no Bad Debt Expense has been recorded yet.
2. Assume instead ADF uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be
uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense.
3. Assume Instead ADF's uses the aging of accounts receivable method and estimates that $79 of its Accounts Receivable will be
uncollectible. Prepare the adjusting journal entry required at December 29, 2018, for recording Bad Debt Expense assuming ADF's:
unadjusted balance in Allowance for Doubtful Accounts at December 29, 2018, was a debit balance of $40.
4. If one of ADF's customers declared bankruptcy, what journal entry would be used to write off its $10 balance?
Complete this question by entering your answers in the tabs below.
Required 3 Required 4
Required 1 Required 2
Assume ADF uses 3/4 of 1 percent of sales to estimate its Bad Debt Expense for the year. Prepare the adjusting journal entry required
for the year, assuming no Bad Debt Expense has been recorded yet. [If no entry is required for a transaction/event, select "No Journal
Entry Required in the first account field. Enter your answers in millions (.e., 10,000,000 should be entered as 10). Round your answers
to the nearest whole number)
Show less A
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education