BE7.5 (LO 3) Wilton, Inc. had net sales in 2020 of $1,400,00o. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $250,000 debit, and Allowance for Doubtful Accounts $2,400 credit. If Wilton estimates that 8% of its receivables will prove to be uncollectible, prepare the December 31, 2020, journal entry to record bad debt expense.
Q: 14.As of January 1, 2021, Barley Co. had a credit balance of $539,000 in its allowance for…
A: Solution:- Calculation of the bad debt expense should Barley record for 2021 as follows:- First we…
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A: There are 2 methods for estimating bad debt expense: 1. Percentage of sales method 2. Percentage of…
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A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
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A: Under the aging method, the percentage of uncollectible is multiplied with the balance of account…
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A: Allowance for uncollectible accounts is considered a contra asset account. It is prepared against…
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A: Particulars $ Balance in allowance for doubtful Accounts in the beginning 33,500 Less:…
Q: PA4. Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable.…
A: Solution: Introduction: Adjusting Entries are the journal entries that are made at the end of a…
Q: JD Company decided on January 2, 2022, to effect the change in accounting policies in relation to…
A: Carrying value of the Accounts Receivable = Accounts Receivable - Estimated uncollectible accounts…
Q: during 2022, P23,000 Accounts receivable at 12/31/22, P375,000 Uncollectible accounts recovered…
A: Allowance for uncollectible accounts is an estimate of the uncollectible for accounts receivable .…
Q: Sheffield Corp. has accounts receivable of $94,400 at March 31, 2022. Credit terms are 2/10, n/30.…
A: Compute total estimated uncollectible for year 2022 as follows: Result:
Q: BE23.9 (LO 2, 3) Colbert Corporation had the following 2020 income statement. Revenues $100,000…
A: Part a:
Q: On December 31, 2019, Hanks Company's Accounts Receivable balance was of $300,000, and an analysis…
A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
Q: On December 31, 2019, Hanks Company's Accounts Receivable balance was of $300,000, and an analysis…
A: Bad debt expenses are expenses related to those accounts receivables to whom business has made…
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A: Formulas: Net realizable value of the receivables = Ending Accounts receivable - Ending Allowance…
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A: The doubtful accounts are the accounts which company finds that they would not be collected in the…
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A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
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A: The unrecovered amount from debtors is known as bad debts. Companies can make a provision for bad…
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A: The question is based on the concept of Financial Accounting.
Q: At January 1, 2020, the credit balance of Reimer Corp.’s allowance for doubtful accounts was…
A: The allowance for doubtful accounts, also known as the allowance for uncollectible accounts, is a…
Q: Becky had net sales (all on Accounts) in 2020 of $8,000,000. At december 31, 2020, before adjusting…
A: Account receivable of a company is an account which is made to show the collective amount of all…
Q: 4) Erd and Kim Company operates in an industry that has a high rate of bad debts. On December 31,…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: During 2019, Company A had net credit sales of Php 600,000. Its Accounts Receivable and Allowance…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: 28.On December 31, 2021, Chel Company had an unadjusted credit balance of P10,000 in its allowance…
A: The uncollectible account expense for the period is calculated as difference of uncollectible…
Q: ts Accounts Receivable at December 31, 2020 and determined that the estimated uncollectibles on that…
A: Accounts written off during current year = Opening balance of allowance for doubtful debt + Bad debt…
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A: The company reports account receivable on the balance sheet as assets under the current head assets.…
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A: Doubtful accounts are those accounts receivable from which it is estimated that amount will not be…
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A: Solution: journal entries on December 31, 2021, May 11, 2022, and June 12, 2022 are as under:
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A: The account receivables are the accounts which are due to the business for receipts from customers.
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A: Accounts receivable: It is an amount that is received in the future from the person who owned the…
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A: Bad debts expense = Estimated uncollectible accounts + Debit balance of Allowance for doubtful…
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A: Estimated uncollectible accounts = accounts receivable x uncollectible % Doubtful accounts expense…
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A: Solution: Accounts receivable before allowance for uncollectible accounts is affected by sales…
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A: The uncollectibles bad debt is computed by multiplying the amount due by the estimated percentage…
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A: Solution: Under % of receivables method, required allowance amount is calculated as a percentage of…
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A: SOLUTION- JOURNAL IS THE COMPANY'S BOOK IN WHICH TRANSACTIONS ARE RECORDED IN CHRONOLOGICAL ORDER.
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A: Allowance for doubtful debts at the year end = €700,000 x 2% = €14,000
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Q: D Company decided on January 2, 2022, to effect the change in accounting policies in relation to bad…
A: Account receivable is listed under current assets. It is generated when selling goods to customers…
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A: Doubtful account expense = Beginning allowance balance + doubtful accounts expense for the year -…
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A: Amortized cost of the accounts receivable at December 31, 202 = Accounts Receivable balance at…
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A: Allowance for doubtful account is the deduction made from the accounts receivable under the current…
Q: XYZ Company showed the following account balances as of December 31, 2020 : Net sales -P400,000;…
A: Bad debts: It is a part of record of accounts receivable that is uncollectible during the year
Q: E9-4 Menge Company has accounts receivable of $93,100 at March 31. Credit terms are 2/10, n/30. At…
A: The amount that the business is enabled to recover that is added to the bad-debt expense account.
Q: A company estimates that P20,000 of its P500,000 of accounts receivable will be uncollectible. Its…
A: Estimated uncollecteble amount=20000Beginning balance=3000
Q: Sheffield Corp. has accounts receivable of $94,400 at March 31, 2022. Credit terms are 2/10, n/30.…
A: Uncollectable accounts are accounts receivables that have actually no chance of being paid back.…
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A: Allowance has a balance of $17,600 on June 30. On August 31, it should have a balance of $15,000 as…
Q: FDN Company reported the following on December 31, 2021, before adjustments: Accounts Receivable…
A: Estimated uncollectible accounts = accounts receivable x uncollectible % Doubtful accounts expense…
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- 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.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. 1,154,000Bristax 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.
- Fortune Accounting reports $1,455,000 in credit sales for 2018 and $1,678,430 in 2019. It has an $825,000 accounts receivable balance at the end of 2018 and $756,000 at the end of 2019. Fortune uses the balance sheet method to record bad debt estimation at 7.5% during 2018. To manage earnings more favorably, Fortune changes bad debt estimation to the income statement method at 5.5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Fortune in 2019 as a result of its earnings management.Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500Clovis Enterprises reports $845,500 in credit sales for 2018 and $933,000 in 2019. It has a $758,000 accounts receivable balance at the end of 2018 and $841,000 at the end of 2019. Clovis uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably, Clovis changes bad debt estimation to the balance sheet method at 5% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Clovis Enterprises in 2019 as a result of its earnings management.
- Aerospace Electronics reports $567,000 in credit sales for 2018 and $632,500 in 2019. They have a $499,000 accounts receivable balance at the end of 2018, and $600,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 5% during 2018. To manage earnings more favorably, Aerospace changes bad debt estimation to the balance sheet method at 7% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Aerospace Electronics in 2019 as a result of its earnings management.Dortmund Stockyard reports $896,000 in credit sales for 2018 and $802,670 in 2019. It has a $675,000 accounts receivable balance at the end of 2018, and $682,000 at the end of 2019. Dortmund uses the balance sheet method to record bad debt estimation at 8% during 2018. To manage earnings more favorably, Dortmund changes bad debt estimation to the income statement method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. Describe a benefit to Dortmund Stockyard in 2019 as a result of its earnings management.Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 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 credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.Angelos Outlet used to report bad debt using the balance sheet method and is now switching to the income statement method. The percentage uncollectible will remain constant at 5%. Credit sales figures for 2019 were $866,000, and accounts receivable was $732,000. How much will Angelos Outlet report for 2019 bad debt estimation under the income statement method?Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% 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 credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.