Randall company estimates it’s bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Randall calculated a total of $3000 in possible credit losses as of December 31. Accounts receivable has a balance of $128,000 and the allowance for doubtful accounts has a credit balance of $500 before adjustment at December 31. ( The options of shaded blank descriptions are accounts receivable, allowance for doubtful accounts, bad debts expense.)A. What is the December 31 adjusting entry to provide for credit losses?B. What is the net amount of accounts receivable that should be included in current assets? Accounting for Doubtful AccountsRandall Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Randall calculated a total of $3,000in possible credit losses as of December 31. Accounts Receivable has a balance of $128,000, and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment atDecember 31.What is the December 31 adjusting entry to provide for credit losses?General JournalDescriptionDebitCredit÷L+What is the net amount of accounts receivable that should be included in current assets?$

The allowance for doubtful accounts is created to record estimated bad debt expense for the period.

Answered: Randall company estimates it’s bad…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 65E: Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared...

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Randall company estimates it’s bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Randall calculated a total of $3000 in possible credit losses as of December 31. Accounts receivable has a balance of $128,000 and the allowance for doubtful accounts has a credit balance of $500 before adjustment at December 31. ( The options of shaded blank descriptions are accounts receivable, allowance for doubtful accounts, bad debts expense.) A. What is the December 31 adjusting entry to provide for credit losses? B. What is the net amount of accounts receivable that should be included in current assets?

Accounting for Doubtful Accounts
Randall Company estimates its bad debts expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Randall calculated a total of $3,000
in possible credit losses as of December 31. Accounts Receivable has a balance of $128,000, and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment at
December 31.
What is the December 31 adjusting entry to provide for credit losses?
General Journal
Description
Debit
Credit
÷
L
+
What is the net amount of accounts receivable that should be included in current assets?
$

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