Leonard had credit sales of $1,200,000, a balance in accounts receivable of $250,000 and an allowance for uncollectible accounts of a $2,100 credit balance. How much will Bad Debt Expense be if: Leonard estimates uncollectable at 2% of credit sales: Leonard estimates uncollectible at 10% of accounts receivable:

Leonard had credit sales of $1,200,000, a balance in accounts receivable of $250,000 and an allowance for uncollectible accounts of a $2,100 credit balance. How much will Bad Debt Expense be if: Leonard estimates uncollectable at 2% of credit sales: Leonard estimates uncollectible at 10% of accounts receivable:

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 1CE

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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.
Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Matu Inc. has the following information during the year: sales 2,000,000sales discounts 30,000Accounts receivable, beginning 250,000collections from all customers 2,100,000allowance for doubtful accounts, beginning 5,000customer accounts written off 2,000 If all sales are credit sales, and privision for bad debts is equal to 2% of net credit sales, compute the following:- Bad debt expense- Net relizable value, ending If 20% of sales are cash sales, and provision for bad debts is equal to 2% of net credit sales, compute the following:- Bad debt expense- Net reliazable value, ending 30% of sales are cash sales, provision for bad debts is equal to 2% of net credit sales, and Php10,000 from collections from customers are recovery of bad debt previously written off, compute the following:- Bad debt expense- Net reliazable value, ending
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Flyer Company has provided the following information:· Cash sales, $150,000· Credit sales, $450,000· Selling and administrative expenses, $110,000· Sales returns and allowances, $30,000· Gross profit, $490,000· Accounts receivable, $110,000· Sales discounts, $14,000· Allowance for doubtful accounts credit balance, $1,200How much is bad debt expense assuming that 5% of accounts receivable is estimated to be uncollectible? Group of answer choices A)$5,500 B)$6,700 C)$4,240 D)$4,300
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Company A has accounts receivable of $100,000, and it estimates that $5,000 will not be collected. What is the net realizable value of accounts receivable?
The Malibu Corporation has annual credit sales of $28 million. The average collection period is 30 days. What is the average investment in accounts receivable as shown on the balance sheet? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)