E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) $90,000 1750 $680,000 Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4 of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1.700 cred balance.

E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) $90,000 1750 $680,000 Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4 of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1.700 cred balance.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5PA: The following accounts receivable information pertains to Luxury Cruises. A. Determine the estimated...

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E7-9 (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Estefan Inc. shows the following balances.InstructionsAccounts ReceivableAllowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and AllowancesDr. Cr.$80,000 1,750$580,000Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 1% of net sales.InstructionsAccounts ReceivableAllowance for Doubtful Accounts Sales Revenue (net, all on credit)
E7.9 (LO3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Estefan Inc. shows the following balances. Accounts Receivable $80.000 (D) Allowance for Doubtful Accounts $1.750 (D) Sales Revenue (net, all on credit) $580.000 (K) Instructions Give the entry for estimated bad debts assuming that the allowance is to providefor doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b)5% of gross, accounts receivables and allowance for Doubtful accounts has a$1,700 credit balance.
sheridan company uses the percentage of receiveables method for recording bas debt expense. the axcounts receiveable balance is 608000 and credit sales are 2620000z. management estimates 4% of accounts receiveable will be un collectible. what adjusting entry will sheidan comany make to record bad bedt expense if the allowance for doubtful accounts has 5500 balance
E7.9 (LO 3) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Cr.Accounts Receivable $90,000 Allowance for Doubtful Accounts 1,750Sales Revenue (all on credit) $680,000Instructions:Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,700 credit balance. (c) Company uses percentage of sales method. Bad debts are estimated at 2% of net credit sales. AFDA has a credit balance of 1,700. (d) Based on (c), what will be the ending balance in AFDA? What is net realizable value of A/R?