Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $688,000 and sales for the year total $7,800,000. The allowance account before adjustment has a debit balance of $9,300. Bad debt expense is estimated at 1/2 of 1% of sales. The allowance account before adjustment has a debit balance of $9,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $29,800. The allowance account before adjustment has a credit balance of $6,000. Bad debt expense is estimated at 1/4 of 1% of sales. The allowance account before adjustment has a credit balance of $6,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $49,800. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

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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Providing for Doubtful Accounts

At the end of the current year, the accounts receivable account has a debit balance of $688,000 and sales for the year total $7,800,000.

  1. The allowance account before adjustment has a debit balance of $9,300. Bad debt expense is estimated at 1/2 of 1% of sales.
  2. The allowance account before adjustment has a debit balance of $9,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $29,800.
  3. The allowance account before adjustment has a credit balance of $6,000. Bad debt expense is estimated at 1/4 of 1% of sales.
  4. The allowance account before adjustment has a credit balance of $6,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $49,800.

Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.

a. $fill in the blank 1
b. $fill in the blank 2
c. $fill in the blank 3
d. $fill in the blank 4
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