Problem 5-13 (AICPA Adapted) Namesake Company reported the following unadjusted balances at year-end: Debit Credit Accounts receivable Allowance for doubtful accounta Net credit sales 3,000,000 10,000 8,000,000 The entity estimated that 3% of the gross accounts receivable would become uncollectible. What amount sbould be reported as doubtful accounts expense for the current year? a 240,000 b. 100,000 90,000 d. 80,000 c. Problem 5-14 (AICPA Adapted) Bestial Company reported the following accounts at year-end before adjustments: Debit Credit Allowance for doubtful accounts Sales Sales return 5,000 7,200,000 200,000 The entity estimated uncollectible accounts receivable at 2% of net sales. What amount of doubtful accounts expenoe ahould be reported for the current year? a. 140,000 b. 145,000 e. 141,000 d. 144,000

Problem 5-13 (AICPA Adapted) Namesake Company reported the following unadjusted balances at year-end: Debit Credit Accounts receivable Allowance for doubtful accounta Net credit sales 3,000,000 10,000 8,000,000 The entity estimated that 3% of the gross accounts receivable would become uncollectible. What amount sbould be reported as doubtful accounts expense for the current year? a 240,000 b. 100,000 90,000 d. 80,000 c. Problem 5-14 (AICPA Adapted) Bestial Company reported the following accounts at year-end before adjustments: Debit Credit Allowance for doubtful accounts Sales Sales return 5,000 7,200,000 200,000 The entity estimated uncollectible accounts receivable at 2% of net sales. What amount of doubtful accounts expenoe ahould be reported for the current year? a. 140,000 b. 145,000 e. 141,000 d. 144,000

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 2SEA: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES Rossins Racers has total credit sales for the year of...

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Aging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayces accounts receivable Cindy indicates that the $121,100 of accounts receivable identified in the table does not include $4,600 of receivables that should be written off. Required: 1. Journalize the $4,600 write-off. 2. Determine the desired post adjustment balance in allowance for doubtful accounts (round each aging category to the nearest dollar). 3. If the balance in allowance for doubtful accounts before the $4,600 write-off was a debit of $700, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.
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