Jalan Tire Co. has net credit sales of RO 500,000 and estimates that uncollectible accounts will be 3% of sales. If Allowance for Doubtful Accounts has a debit balance of RO 2,000 prior to adjustment, its balance after adjustment will be a credit of Select one: O a. RO 21,000. O b. RO 150,000. O . None of the answers are correct. O d. RO 15,000. O e. RO 6,000.

Jalan Tire Co. has net credit sales of RO 500,000 and estimates that uncollectible accounts will be 3% of sales. If Allowance for Doubtful Accounts has a debit balance of RO 2,000 prior to adjustment, its balance after adjustment will be a credit of Select one: O a. RO 21,000. O b. RO 150,000. O . None of the answers are correct. O d. RO 15,000. O e. RO 6,000.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 4MC

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Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.
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.
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. $77,500
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The Maderite Furniture Company has an allowance for uncollectible accounts account with a PhP. 300 debit balance. Net credit sales for the period were PhP. 160,000. An aging process shows that PhP. 5,400 of the accounts receivable probably will be uncollectible. In addition, Maderite Furniture believes that 4% of all net credit sales are uncollectible. The percent-of-sales method is used to account for uncollectibles. What is the amount of the adjusting entry to record uncollectible-account expense and what is the balance in allowance for uncollectible accounts after the adjusting entry is made?