During the year, Bears inc. recorded credit sales of $520,000. Before adjustments at year-end, Bears has accounts receivable of $340,000, of which $54,000 is past due, and the allowance account had a credit balance of $2,700. Using the aging of receivables method, what would be the adjustment assuming Bears expects it will not collect 6% of the amount not yet past due and 30% of the amount past due? A. Bad Debt Expense Allowance for Uncollectible Accounts B. Bad Debt Expense Allowance for Uncollectible Accounts C. Bad Debt Expense Allowance for Uncollectible Accounts D. Allowance for Uncollectible Accounts Bad Debt Expense Multiple Choice O Option A Option Option C Option D 33,360 36,060 30,660 30,660 33,360 36,060 30,660 30,660

During the year, Bears inc. recorded credit sales of $520,000. Before adjustments at year-end, Bears has accounts receivable of $340,000, of which $54,000 is past due, and the allowance account had a credit balance of $2,700. Using the aging of receivables method, what would be the adjustment assuming Bears expects it will not collect 6% of the amount not yet past due and 30% of the amount past due? A. Bad Debt Expense Allowance for Uncollectible Accounts B. Bad Debt Expense Allowance for Uncollectible Accounts C. Bad Debt Expense Allowance for Uncollectible Accounts D. Allowance for Uncollectible Accounts Bad Debt Expense Multiple Choice O Option A Option Option C Option D 33,360 36,060 30,660 30,660 33,360 36,060 30,660 30,660

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 85APSA: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto...

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At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
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