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Cornerstone Exercise 5-27 Aging Method On January 1, 2019, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $1,280,000 Allowance for Doubtful Accounts (a credit balance) 44,000 During 2019, Hungryman had $18,500,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31, 2019. 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31, 2019. Feedback 3. Prepare the necessary adjusting entry for 2019. Bad Debt Expense v Allowance for Doubtful Accounts Record adiusting entry for bad debt expense estimate

Cornerstone Exercise 5-27 Aging Method On January 1, 2019, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $1,280,000 Allowance for Doubtful Accounts (a credit balance) 44,000 During 2019, Hungryman had $18,500,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31, 2019. 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31, 2019. Feedback 3. Prepare the necessary adjusting entry for 2019. Bad Debt Expense v Allowance for Doubtful Accounts Record adiusting entry for bad debt expense estimate

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 20CE
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Cornerstone Exercise 5-27 Aging Method On January 1, 2019, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $1,280,000 Allowance for Doubtful Accounts (a credit balance) 44,000 During 2019, Hungryman had $18,500,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31, 2019. 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31, 2019. Feedback 3. Prepare the necessary adjusting entry for 2019. Bad Debt Expense v Allowance for Doubtful Accounts v Record adjusting entry for bad debt expense estimate
Transcribed Image Text:Cornerstone Exercise 5-27 Aging Method On January 1, 2019, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $1,280,000 Allowance for Doubtful Accounts (a credit balance) 44,000 During 2019, Hungryman had $18,500,000 of credit sales, collected $17,945,000 of accounts receivable, and wrote off $60,000 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $52,000 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31, 2019. 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31, 2019. Feedback 3. Prepare the necessary adjusting entry for 2019. Bad Debt Expense v Allowance for Doubtful Accounts v Record adjusting entry for bad debt expense estimate
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