Crane Company provides for doubtful accounts based on 4.5% of credit sales. The following data are available for 2020: Credit sales during 2020   $3,190,000 Allowance for doubtful accounts 1/1/20   35,500 Collection of accounts written off in prior years      (customer credit was re-established)   15,300 Customer accounts written off as uncollectible during 2020   35,400 What is the balance in Allowance for Doubtful Accounts at December 31, 2020? Allowance for doubtful accounts 12/31/20   $Enter your answer in accordance to the question statement

Q: On January 1, 2020, the balance of accounts receivable of Ortega Company was P5,000,000 and the…

A: There are 2 methods for estimating bad debt expense: 1. Percentage of sales method 2. Percentage of…

Q: Wildhorse Company has accounts receivable of $101,200 at March 31, 2022. Credit terms are 2/10,…

A: Allowance for doubtful accounts is considered as a contra asset account. The bad debts expenses are…

Q: Metlock Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts:…

A: The allowance for doubtful accounts is created to record the estimated bad debt expenses.

Q: Information related to Tesco Company for 2020 is summarized below. Total credit sales $1,200,000…

A: Bad debt expense refers to the amount that becomes unrecoverable from the accounts receivable of the…

Q: In 2020, the Kenan Co. had net credit sales of $375,000. On January 1, 2020 Allowance for Doubtful…

A: Amount of adjustment required = (Ending balance of Accounts receivable X Estimated percentage of…

Q: Maple Company provides for doubtful accounts expense at the rate of 3 percent of credit sales. The…

A: Introduction:- Doubtful Accounts, January 1- P54,000 Credit balance written off as uncollectible…

Q: In 2021 Waterway Co. had credit sales of $1890000 and sales returns and allowances related to these…

A: Debtors collection period: The average time it takes for a firm to recover money owing to it by its…

Q: On December 31, 2019 accounts receivable and allowance for doubtful accounts have P675,000 and…

A: Calculation of allowance for doubtful debt Particulars Amount Opening Balance P30000 Add: Bad…

Q: Doll Company provided the following data for the current year:Allowance for doubtful accounts-…

A: Doubtful accounts are those accounts receivables to whom business has made credit sales on account…

Q: For the year ended, December 31, 2020 BANANA Company estimated its allowance for uncollectible…

A: In order to increase sales, companies sold their goods on a credit basis. whenever the company sold…

Q: DVAH Company estimates that 6% of accounts receivable will be uncollectible. The total credit sales…

A: Allowance for doubtful accounts means where we expect some debts to become bad in near future then…

Q: Sunland Company provides for doubtful accounts based on 4.0% of credit sales. The following data are…

A: SOLUTION- DOUBTFUL ACCOUNTS-  IT IS AN ACCOUNT RECEIVABLE THAT MIGHT BECOME A BAD DEBT AT SOME POINT…

Q: 1. Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts…

A: Bad debts are the amount which is no more receivable due to insolvency of the debtor or inability to…

Q: Bramble, Inc. had net sales in 2020 of $1,502,900. At December 31, 2020, before adjusting entries,…

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

Q: Sky Company provided the following information at year-end: 2019 2018 Accounts receivable Allowance…

A: Sales: Sales include a number of goods and services sold by the organization during their accounting…

Q: Ray Company’s trial balance at Dec. 31, 2018 included the following account…

A: Introduction:- Bad debt expense is recognized in the income statement as an expense. which are…

Q: Wilton, Inc. had net sales in 2020 of $1,400,000. At December 31, 2020, before adjusting entries,…

A: Bad debt expense = Required balance in Allowance for Doubtful Accounts - Already balance in…

Q: On January 1, 2019, Easy Company reported accounts receivable P2,070,000 and allowance for doubtful…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On December 31, 2019 accounts receivable and allowance for doubtful accounts have P675,000 and…

A: Accounts Receivable Accounts receivable is considered to be one of the main cash generation into the…

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: On January 1, 2019, Import Properties Inc. reported the following balances on its statement of…

A: Allowance for doubtful debt is an account that records the amount of receivables expected to be…

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: At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is…

A:

Q: York Company opened for business on January 1, 2020. The firm had total credit sales of $150,000…

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

Q: At December 31, 2019, Garner has a $10,000 credit balance in its allowance for doubtful accounts.…

A: A method in which bad debt expense is evaluated as a percentage of the credit sales of a particular…

Q: If the accounts receivable balance at December 31 was $200,000, what is the required adjustment to…

A: Answer:   Option c.

Q: Sage Hill Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts:…

A: As the questions asked have more than 1 question, the first question is answered. If you want the…

Q: The following is information taken from the June 30, 2020, balance sheet of Tippleton Company:…

A: First, compute the net credit sales as shown below: Net credit sales = $1,093,000 - $39,000 Net…

Q: The following accounts were abstracted from Mana Company's unadjusted trial balance on December 31,…

A: Estimated uncollectible accounts = accounts receivable x 3% = 3000000*3% = 90,000

Q: Easy Company sells directly to retail customers. On January 1, 2020, the balance of the accounts…

A: Year Credit sales Bad debts written off Bad debt recoveries 2017 11100000 260000 22000 2018…

Q: In 2020, Ahmad Company had credit .1 sales of $800,000 and granted sales discounts of $20,000. On…

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

Q: Castaway Company provided the following information for the current year: Allowance for doubtful…

A: Allowance for Doubtful Accounts: It estimates the percentage of accounts receivable  which  are…

Q: The following accounts were taken from Skysong Inc.’s unadjusted trial balance at December 31, 2020:…

A: The allowance for doubtful account is created to keep the record of doubtful accounts.

Q: Splish Company has accounts receivable of $113,300 at March 31, 2020. Credit terms are 2/10, n/30.…

A: Age of Accounts AccountsReceivable EstimatedPercentageUncollectible EstimatedUncollectibles…

Q: Information related to Tesco Company for 2020 is summarized below. Total credit sales $1,200,000…

A: Accounts receivable (AR) is the amount of cash yet to be received by a firm for products or services…

Q: Ivanhoe Company provides for doubtful accounts based on 4.0% of credit sales. The following data are…

A: Estimated uncollectible accounts = Credit sales during 2020 x 4% = $3,020,000 x 4% = $120,800

Q: 8. For the year ended, December 31, 2020, GERBERA Company estimated its allowance for uncollectible…

A: Uncollectible accounts are those account receivables to whom business has made credit sales on…

Q: Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account…

A: Allowance for doubtful accounts balance required = Total annual sales x 2.5% = $40000000*2.5% =…

Q: plish Company has accounts receivable of $113,300 at March 31, 2020. Credit terms are 2/10, n/30. At…

A: Under the aging method, first the post adjustment in allowance for doubtful accounts is computed.…

Q: On January 1, 2019, Import Properties Inc. reported the following balances on its statement of…

A: FIrstly we shall calculate the gross accounts receivable on December 31, 2019 and then reduce…

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: For the year ended, December 31, 2020, LAVENDER Company estimated its allowance for uncollectible…

A: Balance before adjustment=Allowance 1/1/20 - Uncollectibles written off=₱ 56,000-₱46,000=₱10,000

Q: Larkspur Inc.’s unadjusted trial balance at December 31, 2020, included the following accounts:…

A: Bad Debt Expense = 1.5% of Net Sales   Net Sales = $2,065,000 - $61,300 - $3,900 = $1,999,800

Q: Bonita Company’s unadjusted trial balance at December 31, 2020, included the following accounts.…

A: Allowance for the doubtful account is considered as a contra asset account. It is used to decrease…

Q: Metlock, Inc. had net sales in 2020 of $1,482,700. At December 31, 2020, before adjusting entries,…

A: Estimated Uncollectible = 9% of Accounts Receivables   This means the ending balance of Allowance…

Q: Doll Company provided the following data for the current year: Allowance for doubtful accounts-…

A: Allowance for doubtful accounts before adjustment  = Allowance for doubtful accounts- January 1 -…

Q: The following information relates to Excellent Inc. for the year 2021: Sales for 2021 (90% on…

A: Req-A        Date   Accounts and Explanation   Debit   Credit   June 15 Accounts Receivable…

Q: salance, Age of Accounts March 31 Uncollectible 2020 2019 Current $78,000 $75,000 2% 1-30 days past…

A: The financial accounting term allowance method refers to the process of an uncollectible account…

Q: A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts…

A: Lets start with understanding of bad debt and allowance for doubtful accounts, Bad debt means a debt…

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.…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.