PA 4. LO 9.2 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. Rekord 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.
PA 4. LO 9.2 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. Rekord 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.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...
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![PA 4. LO 9.2 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F472d6901-7a6d-4c7a-ab43-02f45871354f%2Fee1fb169-f3b5-4531-bcf7-9de447619bed%2F12t2rpb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PA 4. LO 9.2 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.
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Step 1: Introduction to bad debt expense under two methods:
VIEWStep 2: Adjusting entry under Income statement method and Balance sheet method:
VIEWStep 3: Adjustment of Previous debit balance in allowance with bad debt expense:
VIEWStep 4: Adjustment of previous credit balance in bad debt expense:
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