Brief Exercise 5-24 (Static) Determine financial statement effects of writing off uncollectible accounts (LO5-4) At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $15,000. By the end of the year, actual bad debts total $17,000. Determine the financial statement effects of writing off an uncollectible account. (Amounts to be deducted should be entered with minus sign.) Revenues Assets Income Statement Balance Sheet Expenses Liabilities = Net Income Stockholder Equity

Brief Exercise 5-24 (Static) Determine financial statement effects of writing off uncollectible accounts (LO5-4) At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $15,000. By the end of the year, actual bad debts total $17,000. Determine the financial statement effects of writing off an uncollectible account. (Amounts to be deducted should be entered with minus sign.) Revenues Assets Income Statement Balance Sheet Expenses Liabilities = Net Income Stockholder Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 debitThe company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year’s income statement? a. $400.b. $2,800.c. $3,200.d. $3,600.
Brief Exercise 5-24 (Algo) Determine financial statement effects of writing off uncollectible accounts (LO5-4) At the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $24,500. By the end of the year, actual bad debts total $26,500. Determine the financial statement effects of writing off an uncollectible account. (Amounts to be deducted should be entered with minus sign.) Revenues Assets Income Statement Balance Sheet Seved Expenses Liabilities < Prev 4 of 8 Net Income Stockholders Equity Nev
A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 creditThe company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year’s income statement? a. $400.b. $2,800.c. $3,200.d. $3,600.
A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 credit The company estimates 1% of credit sales will be uncollectible. At what amount would Allowance for Uncollectible Accounts be reported in the current year’s balance sheet? a. $4,000.b. $4,400. c. $3,600. d. $800.
question: Record the journal entries for the bad debt expense and $50 write off from the following: A company is getting ready to publish their annual financial statements. They have the following beginning balances: Beginning balance for gross accounts receivable (A) $2,000 beginning balance for Allowance for doubtful accounts (XA) $300 They make $10,000 in credit sales in the current period. Assume that 1% of credit sales are typically not collectible. If the income statement method is used, what are the reported (a.) bad debt expense and (b.) ending balance for the allowance for doubtful accounts? please include classification of accounts and label debits and credits.
1 The CVM Corporation was organized in 20x1. In the same year, CVM had a total revenue of P250,000 Records showed P200,000 of this was collected during the year Based on the percentage of collections in the past the CVM estimates 10% of the accounts may prove uncollectible, The of the Allowance for credit losses account before making adjustments is P2,000. Required: What is the Accounts receivable balance at the end of 20x1? What should be the balance of the allowance for credit losses account at the end of 20x1? What is the credit loss that should be recognized in 20x1? What is the adjusting entry to record the estimated credit loss on December 31, 20x17 What is the net realizable value of the Accounts receivable at December 31, 20x1?
Suppose the balance in the Allowance for Doubtful Accounts at the end of year is a $400 Debit balance before adjustment. The company estimates future uncollectible accounts to be $3,200. At what amount would Bad Debt Expense be reported in the current year's income statement? A. $400 B. $2,800 C. $3,600 D. $3,200
An entity provided the following information for the current year: Accounts receivable – January 1 P2,000,000 Credit sales 10,000,000 Collection from customers, excluding recovery of accounts written off 8,000,000 Accounts written off as worthless 100,000 Sales return 500,000 Recovery of accounts written off 50,000 Estimated future sales returns on December 31 150,000 Estimated uncollectible accounts on December 31 per aging 300,000 What is the “amortized cost” of accounts receivable on December 31?
6) Brotherhood Company had the following information relating to its accounts receivable: Accounts receivable, 12/31/21 1,300,000 Credit sales for 2022 5,400,000 4,750,000 125,000 Collections from customers for 2022, excluding recovery Accounts written off 9/30/22 Collection of accounts written off in prior year (customer credit was not reestablished) Estimated uncollectible receivable per aging of receivable at 12/31/22 25,000 165,000 On December 31, 2022, the amortized cost of accounts receivable is a. 1,825,000 b. 1,800,000 c. 1,635,000 d. 1,660,000
1. Kinney Corporation estimates its uncollectible accounts as a percentage of its credit sales. The rate it uses is 3% and in 2018, its credit sales were $1,500,000. Required: a. Prepare journal entries to record the bad debts expense for the year. b. If Allowance for an uncollectible account has a credit balance of $60,000 before entries in (a) above, show how Accounts Receivable will be presented in the Balance Sheet of Kinney Corporation.
Brief Exercise 8-10 (Part Level Submission) During its first year of operations, Sandhill Co. had credit sales of $3,208,100, of which $434,300 remained uncollected at year-end. The credit manager estimates that $19,120 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
What is the net realizable value of accounts receivable at the end of year, given the following information:Balance in Accounts Receivable at end of year, $104,000Balance in Allowance for Doubtful Accounts, beginning of year, $2,000 debitWrite-offs during year, $5,000Bad debt expense for year, $9,000Recoveries during year of accounts previously written-off, $2,000