Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,191,000 and sales for the year total $13,510,000. a. The allowance account before adjustment has a credit balance of $16,100. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,500. c. The allowance account before adjustment has a debit balance of $6,500. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $6,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $54,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. 17,675 X 51,500 X 101,325 ✔ 54,000 X a. b. C. d.
Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,191,000 and sales for the year total $13,510,000. a. The allowance account before adjustment has a credit balance of $16,100. Bad debt expense is estimated at 1/4 of 1% of sales. b. The allowance account before adjustment has a credit balance of $16,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $51,500. c. The allowance account before adjustment has a debit balance of $6,500. Bad debt expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a debit balance of $6,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $54,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above. 17,675 X 51,500 X 101,325 ✔ 54,000 X a. b. C. d.
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 5SEA: UNCOLLECTIBLE ACCOUNTSPERCENTAGE OF SALES AND PERCENTAGE OF RECEIVABLES At the end of the current...
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