Circle Inc. had bad debt expense on its customer receivables as follows for 2016-2019, respectfully. Compute the trend percentages (whole number % changes, only) for these years assuming 2016 is the base year. 2016 $80,000 2017 $88,000 2018 $95,000 2019 $102,000
Q: Pineapple Company has recorded bad debts expense in the past at a rate of 1.5% of net sales. In…
A: Solution: As per GAAP, change in accounting estimated will be accounted for on prospective basis,…
Q: The following is the data from Company X for 2016 and 2017. 2016 2017 Net Sales S800,000 S900,000…
A: Ratio analysis is very important technique used in management accounting. Accounts receivable…
Q: Clark Company estimated the net realizable value of its accounts receivable as of December 31, 2016,…
A: Compute Allowance for uncollectible accounts as on December 31, 2016 Gross receivables $175,000…
Q: The data below is for Music Corporation for 2016. Accounts receivable—January 1, 2016 $236,000…
A: Given: Allowance for doubtful accounts -January1,2016 =$8700Customer accounts written off as…
Q: Accounts Receivable for Lisa Company at December 31, 2021 showed a balance of P1,500,000. The…
A: Amortized cost of the accounts receivable at December 31, 202 = Accounts Receivable balance at…
Q: Trading Company prepared an aging of its accounts receivable on December 31, 2020and determined that…
A: Bad debts refer to the amount of the accounts receivables that are not repaid by the debtor and need…
Q: The following information is taken from the 2015 annual report to shareholders of Hughe-Pockets (HP)…
A: Provision for doubtful debts is not required for calculation of allowance for doubtful accounts
Q: Vandross Company has recorded bad debt expense in the past at a rate of 1½% of accounts receivable,…
A: Changes in accounting estimates are shown for the period of change and future period if the change…
Q: In 2020, Maxton Company sold its services on credit in the amount of $988,400. Total cash…
A: Bad debt expense is amount not able to recovered by entity or individual from its debtors.
Q: In 2016, Grant Corporation recorded credit sales of $3,200,000 and bad debts expenses of $42,000.…
A: Hence, journal entries are passed for recording the sales revenue, bad debts expenses, write off of…
Q: Wilton, Inc. had net sales in 2017 of $1,400,000. At December 31, 2017, before adjusting entries,…
A: Bad debt expense = (Accounts Receivable x 8%) - Allowance for Doubtful Accounts = ($250,000 x 8%) -…
Q: In 2016, Winslow Company had net credit sales of $1,250,000. On January 1, 2016, Allowance for…
A: Estimated uncollectible account = Accounts receivables x 10% = $360,000 x 10% = $36,000
Q: In 2013, Coca-Cola had a receivables turnover ratio of9.3. Which of the following actions could…
A: Receivables turnover ratio: It refers to a measure of accounting that is used to determine the…
Q: Aerospace Electronics reports $568,000 in credit sales for 2018 and $634,500 in 2019. They have a…
A: Under Income statement method, bad debt estimation is calculated as a percentage of credit sales.…
Q: A company has the following information for the year 2015. Accounts Receivables, beginning of the…
A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…
Q: ABC Company has the following data relating to accounts receivable for the year ended December 31,…
A:
Q: repare the adjusting entry to record estimated bad debts expense using the percentage of receivables…
A: Bad debt expense can be defined as the amount of uncollectible accounts receivable which is a loss…
Q: The company had the following beginning year balances in 2016. The company had credit sales of…
A: Credit sales = 1000000 Cash sales = 1200000 Bad debt = 12000
Q: 7. IRIS Inc. prepared an aging of its accounts receivable at December 31, 2016 and determined that…
A: Accounts receivable: It is an amount that is received in the future from the person who owned the…
Q: ,2017, ABC Corporation's accounting records include ts Receivable $250,000 (debit) mce for Doubtful…
A: Solution: Balance of Allowance for Doubtful accounts = Accounts receivable * 6.5% = 250000* 6.5% =…
Q: General Mills reported the following information in its 2017 financial statements ($ in millions):…
A:
Q: Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of…
A: The bad debts expense is the estimation the amount of Debtors which are doubtful to be received.
Q: A company had credit sales of $500,000 during the third quarter of 2013. It had to write-off $300 of…
A: Bad Debt Expense (% of Sales Method) = Credit Sales x Estimated % Uncollectible
Q: Novak Corp. has accounts receivable of $90,300 at March 31, 2017. Credit terms are 2/10, n/30. At…
A: Calculate total estimated uncollectible amount:
Q: Pineapple Company has recorded bad debts expense in the past at a rate of 1.5% of net sales. In…
A: SOLUTION- BAD DEBTS REFERS TO LOANS AND ADVANCES OR OUTSTANDING BALANCES OWED TO THE BUSINESS THAT…
Q: Assuming that the over 180 days account is 100% uncollectible, how much is the balance of allowance…
A: Account receivable = 500000+3120000 -3020160-42000+2160 = 560000
Q: The following information is taken from the 2014 annual report to shareholders of Hewlett-Packard…
A: Compute balance of allowance for doubtful accounts at the end of period as shown below:
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: Aerospace Electronics reports $590,065in credit sales for 2018 and $596,438 in 2019. They have a…
A: Solution: Bad debt estimation = Credit sales * % of expected bad debt
Q: Estimating and Recording Bad Debt Estimates and Write-offs; Reporting of Accounts Receivable At…
A: Uncollectible accounts are those receivables which are having the least chances of being paid in…
Q: Tosh and Sons Inc. uses the percentage of receivables approach to estimate its uncollectible…
A: Allowance for Doubtful Accounts: Allowance for doubtful accounts is determined as the reduction in…
Q: Teal Mountain Distributors, Inc. had net sales in 2017 of $2,450,000. At December 31, 2017, before…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Aerospace Electronics reports $570,000 in credit sales for 2018 and $634,500 in 2019. They have a…
A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers…
Q: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared…
A: Average percentage of losses from uncollectible accounts = Total Losses from Uncollectible Accounts…
Q: Accounts Receivable for Risa Company at December 31, 2021 showed a balance of P1,500,000. The…
A: Amortized cost of the accounts receivable at December 31, 202 = Accounts Receivable balance at…
Q: The comparative balance sheet of Sloan company reveal that accounts receivable (before deducting…
A: First of all, Bad debt allownace- its 2% of salestherefore it would be 2% of 120000= $2,400But the…
Q: Angelo’s Outlet used to report bad debt using the balance sheet method and is now switching to the…
A: Income statement method of estimation of bad debts involves calculation of bad debts as a percentage…
Q: During 2014, a company wrote off $6,000 in uncollectible accounts receivable. At the end of the…
A: Uncollectible receivable represents the expected amount from the receivables balance which the…
Q: Record the write off for bad debts based on the this information: Alpha Company's accounts…
A: Bad debt is an expense to the company which means the amount that is unable to collect by the…
Q: Duncan Corporation began 2018 with a balance in Accounts Receivable of $500,000.Service revenue, all…
A: Accounts receivable means the amount left to be collected from the customers. It appears on the…
Q: The following information is taken from the 2014 annual report to shareholders of Hewlett-Packard…
A: Allowance for Doubtful Accounts: Allowance for doubtful accounts is determined as the reduction in…
Q: Information related to Tesco Company for 2020 is summarized below. Total credit sales $1,200,000…
A: Under the direct write-off method of accounting for bad debts, the allowance for doubtful accounts…
Q: During fiscal year 2012, Byrd Inc. wrote-off $8,000 of customer accounts as uncollectible. Which of…
A: Uncollectible accounts are those customer accounts to whom business has made credit sales and amount…
Q: Here is information related to Mingenback Company for 2022. Total credit sales $2,500,000…
A: Bad debts refers to the portion of receivables that will not be realized by the entity.
Q: Suppose the following information was taken from the 2017 financial statements of FedEx Corporation,…
A: The given question can be answered in the following manner :
Circle Inc. had
2016 $80,000
2017 $88,000
2018 $95,000
2019 $102,000
Step by step
Solved in 2 steps
- 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.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.
- 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?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.Bristax 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.
- Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts: Required: 1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018. 2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of loses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method. 3. CONCEPTUAL CONNECTION Do you believe this estimate of bad debt expense is reasonable? 4. CONCEPTUAL CONNECTION How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were What other action would management consider?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. $77,500Millennium Associates records bad debt using the allowance, balance sheet method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On November 22, Millennium Associates identifies one uncollectible account from Angels Hardware in the amount of $3,650. On December 18, Angels Hardware unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. November 22, 2018 identification entry C. Entry for payment on December 18, 2018
- Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.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.Millennium Associates records bad debt using the allowance, income statement method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,330. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018
