Maple Foods, Inc., experienced the following revenue and accounts receivable write-offs EEB (Click the icon to view the revenue and accounts recelvable write-off information.) Suppose Maple estimates that 4% of (gross) revenues will become uncollectible. Assume all revenues are on credit. Read the requirement. Begin by preparing the journal entry for service revenue for the month of March. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Requirement Date Accounts and Explanations Debit Credit Mar Accounts Receivable 4,400 Service Revenue 4,400 1. Journalize service revenue (all on account), uncollectible accounts expense and write-offs during March. Include explanations Recorded revenue on account Print Done Now, prepare the journal entry for uncollectible expense for the month of March. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journal Entry Date Accounts and Explanations Debit Credit Data Table Mar Service Accounts Receivable Write-Offs in Month Totals Month January 3,300 $ February March Revenue January February March 52 $ 146 135 110 391 94 3,100 4,400 110 $ 25 110 135 $ $10,800 $ 52 $ 204 $ Print Done

At the end of the current year, Accounts Receivable has a balance of 3,750,000, Allowance for Doubtful Accounts has a credit balance of 22,750, and sales for the year total 48,400,000. Bad debt expense is estimated at of 1% of sales. Determine (a) the amount of the adjusting entry for uncollectible accounts; (b) the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

Compare two methods of accounting for uncollectible receivables Cyber Space Company, which operates a chain of 65 electronics supply stores, has just completed its fourth year of operations. The direct write-otT method of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the firm is considering changing to the allowance method. Information is requested as to the effect that an annual provision of ½% of sales would have had on the amount of had debt expense reported for each of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts: Instructions Assemble the desired data, using (he following column headings:

Compare Two methods of accounting for uncollectible receivables Cyber Space Company, which operates a chain of 65 electronics supply stores, has just completed its fourth year of operations. The direct write-otT method of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the firm is considering changing to the allowance method. Information is requested as to the effect that an annual provision of ½% of sales would have had on the amount of had debt expense reported for each of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts: Instructions Experience during the first four years vi operations indicated that the receivables were either collected within two years or had to be written off as uncollectible. Does the estimate of ½% of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first two years? Explain.

The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Instructions 1. Record the January 1 credit balance of 26,000 in a T account for Allowance for Doubtful Accounts. 2. Journalize the transactions. Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31. 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of of 1% of the sales of 18,200,000 for the year, determine the following: a. Bad debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. c. Expected net realizable value of the accounts receivable as of December 31.

If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?

For several years, Xtreme Co.s sales have been on a cash only basis. On January 1, 20Y4, however, Xtreme Co. began offering credit on terms of n/30. The amount of the adjusting entry to record the estimated uncollectible receivables at the end of each year has been of 1% of credit sales, which is the rate reported as the average for the industry. Credit sales and the year-end credit balances in Allowance for Doubtful Accounts for the past four years are as follows: Laurie Jones, president of Xtreme Co., is concerned that the method used to account for and write off uncollectible receivables is unsatisfactory. She has asked for your advice in the analysis of past operations in this area and for recommendations for change. 1. Determine the amount of (a) the addition to Allowance for Doubtful Accounts and (b) the accounts written off for each of the four years. 2. a. Advise Laurie Jones as to whether the estimate of of 1% of credit sales appears reasonable. b. Assume that after discussing (a) with Laurie Jones, she asked you what action might be taken to determine what the balance of Allowance for Doubtful Accounts should be at December 31, 20Y7, and what possible changes, if any, you might recommend in accounting for uncollectible receivables. How would you respond?

A business has an ending balance in Accounts Receivable of 35,000; credit sales for the year of 300,000; and a credit balance in Allowance for Doubtful Accounts of 800. If the percentage of sales method is used and the percentage is estimated at 1% of credit sales, what is the amount to be entered for the adjusting entry? (a) 3,000 (b) 3,800 (c) 2,200 (d) 1,150

A business has an ending balance in Accounts Receivable of 35,000; credit sales for the year of 300,000; and a credit balance in Allowance for Doubtful Accounts of 800. If the percentage of sales method is used and the percentage is estimated at 1% of credit sales, what is the ending balance in Allowance for Doubtful after the adjusting entry? (a) 3,000 (b) 3,800 (c) 2,200 (d) 1,150

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.