Question
Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts
should be $23,550. The account had an unadjusted credit balance of $11,900 at that time.
a. The appropriate bad debt adjustment was recorded.
b. Later, an account receivable for $2,900 was determined to be uncollectible and was written off.
Required:
For each transaction listed above, indicate the amount and direction +for increase or -for decrease) of effects on the financial
statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a
minus sign.)
Assets
Liabilities
Stockholders' Equity
expand button
Transcribed Image Text:Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $23,550. The account had an unadjusted credit balance of $11,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,900 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction +for increase or -for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' Equity
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Not helpful? See similar books
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Financial Statements And Business Decisions. 1Q
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Sheffield Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Swifty Corporation uses the percentage-of-receivables basis to record bad debt expense and concludes…

A: Hence, the allowance for doubtful accounts is $16,712. It is obtained by the multiplication of…

Q: Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense and…

A: Journal entry is the primary entry that records the financial transactions initially.

Q: Bonita Industries uses the percentage-of-receivables basis to record bad debt expense and concludes…

A: Bad debt expenses need to e recognised in the year of the sale of the goods based on estimated…

Q: Metlock, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that…

A: Estimated uncollectible accounts = Accounts receivable x 3% = $361,400 x 3% = $10,842

Q: Metlock, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that…

A: Estimated uncollectible amounts = Accounts receivable at the end of the year x % uncollectible Bad…

Q: Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense and…

A: Accounts receivable: It refers to the amount that is owed by the customers from the business for the…

Q: Skysong, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that…

A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account…

Q: Using the % of aging-of-accounts receivable to estimate uncollectible accounts, The Valley…

A: An allowance for uncollectible account has been prepared on the basis of estimation of bad debts…

Q: An aging of a company's accounts receivable indicates that $7,327 are estimated to be uncollectible.…

A: The adjustment of bad debt expense is made to the allowance account such that the ending balance is…

Q: Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense and…

A: Bad debt expense refers to the amount of accounts receivables that become uncollectible by the…

Q: Manchester Company provided the following accounts abstracted from the unadjusted trial balance at…

A: Trial balance is prepared at the end of the financial year to determine the ending balances of…

Q: Assuming that the Rector Company uses the Balance Sheet Approach to estimate bad debt expense. Based…

A: The desired balance of allowance is 18000. And there already exists a balance of 1000. Hence we need…

Q: A company has accounts receivable of $1,000,000 at 12/31 and estimates that the allowance for…

A: Allowance for bad debts is the provision created for the purpose of having sufficient funds if the…

Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…

A: Bad debts expense is an expense caused due to non-payment by the accounts receivable or part payment…

Q: An aging of a company's accounts receivable indicates that $5,539 are estimated to be uncollectible.…

A: Amount of bad debts expense = Estimated uncollectible accounts - Unadjusted balance of Allowance for…

Q: Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes…

A: If there is a debit balance in the allowance for doubtful accounts, its balance is added to the bad…

Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…

A: Bad Debts Expense to be recorded = Required credit balance in Allowance for Doubtful Accounts…

Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…

A: given that, uncollectible accounts total $5,664 Allowance for doubtful debts has a debit balance of…

Q: A company uses the percent of receivables method to estimate doubtful accounts. At the end of the…

A: Estimated uncollectible amounts = Accounts receivable x 6% = 280,000*6% = 16,800

Q: At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of…

A: General Journal of Bramble corp . No. Account Titles and Explanation Debit Credit a) Account…

Q: ina Colada Corp. uses the percentage of receivables method for recording bad debts expense. The…

A: Estimated uncollectible amount = 3% of accounts receivable = $270000 x 3% = $8100

Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…

A: Bad debt expense = Estimated Uncollectible Accounts +/- Debit/Credit Balance of Allowance

Q: At the beginning of the current period, Waterway Industries had balances in Accounts Receivable of…

A: a) Journal entry to record the sales and collections during the period.

Q: An aging of a company's accounts receivable indicates the estimate of uncollectible receivables…

A: Introduction:- Bad debt is a financial obligation owed to a lender that the lender is hesitant to…

Q: At the beginning of the current period, Kingbird, Inc. had balances in Accounts Receivable of…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…

Q: SIPAG Company provided the following accounts abstracted from the unadjusted trial balance at year-…

A: Estimated uncollectible accounts = accounts receivable x 3% = 5000000*3% = 150,000

Q: At the beginning of the current period, Teal Mountain Corp. had balances in Accounts Receivable of…

A: Journal entries includes the recording of each monetary transaction in the books of accounts of a…

Q: At the beginning of the current period, Teal Mountain Corp. had balances in Accounts Receivable of…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: At the beginning of the current period, Teal Mountain Corp. had balances in Accounts Receivable of…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: At the beginning of the current period, Teal Mountain Corp. had balances in Accounts Receivable of…

A: Since we only answer up to 3 sub-parts, we’ll answer the first three sub-parts. Please resubmit the…

Q: Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The…

A: Given the following information: Accounts receivable balance: $250,000 Credit sales: $1,000,000…

Q: The following accounts were found in the ledger of the Company on December 31 of the current year:…

A: The adjustment necessary for allowance account is adjusted balance of allowance account minus ending…

Q: At the beginning of the current period, Sunland Company had balances in Accounts Receivable of…

A: Hello! Thank you for your question. As per the company policy, we solve the first three parts of the…

Q: At the beginning of the current period, Sunland Company had balances in Accounts Receivable of…

A: Record journal entries for the transactions as shown below:

Q: At the beginning of current year, Rampant Company reported that the allowance for doubtful accounts…

A: The answer is stated below:

Q: An aging of a company's accounts receivable indicates the estimate of uncollectible receivables…

A: Given that estimate of uncollectible receivables = $4458 Allowance for Doubtful Accounts = $ 1118

Q: Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the…

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Q: An aging of a company's accounts receivable indicates the estimate of uncollectible receivables…

A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…

Q: Pharoah Company uses the percentage-of-receivables method for recording bad debt expense. The…

A: Estimated uncollectible accounts = 6% of accounts receivables = $440,000x 6% = $26,400

Q: Shenzhen Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that…

A: Estimated uncollectible amount = Accounts Receivable x 1% = £420,000 x 1% = £4200 Bad debt expense…

Q: Prior to the adjusting entry for bad debt expense, Lierman, Inc.'s balances for accounts receivable…

A: BAD DEBT EXPENSES = (ACCOUNTS RECEIVABLE BALANCE - ADJUSTED NET REALIZABLE VALUE OF ACCOUNTS…

Q: At the close of its first year of operations, December 31, 2004, Linn Company had accounts…

A: Allowance for doubtful accounts = Bad debt expense - Amount wrote off = ₱90,000 - ₱40,000 = ₱50,000

Q: Stello Co. uses the percentage of credit sales method to determine its bad debt expense. All sales…

A: Bad Debts Expense = Net credit sales x % of net credit sales to be uncollectible

Q: Allowance for Doubtful Accounts has a credit balance of $1,011 at the end of the year (before…

A: Allowance for Doubtful Accounts should have an ending balance of $12,310. It has already a balance…

Q: Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end…

A: Workings: Total accounts receivable = $ 555000 Allowance for doubtful accounts = $ 40000

Q: D’Costa Company uses the allowance method of handling credit losses. It estimates losses at 2% of…

A: Click to see the answer

Q: Bidiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for…

A: Allowance method: It is a method for accounting bad debt expense, where the amount of uncollectible…

Q: Bidiyah Co. estimates that RO 6,500 of its accounts receivable to be uncollectible. If Allowance for…

A: Bad debts expense = Estimated uncollectible accounts receivable - Beginning balance in Allowance for…

Knowledge Booster
Recommended textbooks for you
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
  • Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education
  • FINANCIAL ACCOUNTING
    Accounting
    ISBN:9781259964947
    Author:Libby
    Publisher:MCG
    Accounting
    Accounting
    ISBN:9781337272094
    Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
    Publisher:Cengage Learning,
    Accounting Information Systems
    Accounting
    ISBN:9781337619202
    Author:Hall, James A.
    Publisher:Cengage Learning,
    Horngren's Cost Accounting: A Managerial Emphasis...
    Accounting
    ISBN:9780134475585
    Author:Srikant M. Datar, Madhav V. Rajan
    Publisher:PEARSON
    Intermediate Accounting
    Accounting
    ISBN:9781259722660
    Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
    Publisher:McGraw-Hill Education
    Financial and Managerial Accounting
    Accounting
    ISBN:9781259726705
    Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
    Publisher:McGraw-Hill Education