The Allowance for uncollectible accounts currently has a credit balance of $200. Thecompany's management estimates that 2.5% of net credit sales will be uncollectible. Netcredit sales are $115,000. What will be the amount of Uncollectible account expensereported on the income statement?

Q: Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable.…

A: The account receivables have the debit balance and allowance for doubtful accounts have credit…

Q: Ringo Company had the following information relating to net credit sales for 20X5:   Accounts…

A: Formula: Uncollectible account expense = Allowance for uncollectible accounts after adjustment -…

Q: 1. Kinney Corporation estimates its uncollectible accounts as a percentage of its credit sales. The…

A: Since amount of bad debts amount is not given, we can only pass a specimen entry. bad debt Dr. xxx…

Q: Jay Company provided the following data relating to accounts receivable for the current year:…

A: Total = Accounts receivable, Jan 1 + Credit Sale=650,000+2,700,000=3,350,000

Q: At the beginning of current year, had a credit balance of P260,000 in the allowance for…

A: Following is the answer to the given question

Q: Gu Company provided the following from the unadjusted trial balance at year end     Debit Credit…

A: Allowance for doubtful debts are created as a percentage of ending balance of accounts receivable.

Q: Accounts Receivable has a balance of $34,000, and the Allowance for Bad Debts has a credit balance…

A: Net realizable value =  Accounts Receivable -  Allowance for Bad Debts.

Q: As of January 1, 2021, NUBD Co. had an accounts receivable of P500,000. The sales for January,…

A: Given that, Opening balance of accounts receivables = P500000 Sales for the month of Jan = P1200000…

Q: At the end of the year, Bertha Enterprises estimates the uncollectible accounts expense to be 0.7…

A: Uncollectible accounts expense = Net sales x 0.7% =$15150000*0.7% = $106,050

Q: As of January 1, 2021, NUBD Co. had an accounts receivable of P500,000. The sales for January,…

A: The budget is prepared to estimate the requirements for the future period.

Q: At the beginning of the current period, Tamarisk, Inc. had balances in Accounts Receivable of…

A: Accounts Receivable- It is the amount which has not been received by the company from its customers…

Q: At the end of the current year, Accounts Receivable has a balance of $555,000; Allowance for…

A: Solution a:   Sales 2500000 *% of sales (1%*1/4) 0.25% Amount of Adjusting entry  6250…

Q: A company has a 30-day credit terms to its customers. It has a total of P120,000 in their accounts…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: JKL Company’s sales are $1,000,000 and 80% of those sales are on credit. The beginning and ending…

A: Average Collection Period: In terms of Accounts Receivable, the average collection time of the…

Q: Leonard had credit sales of $1,200,000, a balance in accounts receivable of $250,000 and an…

A: Bad debt expenses are the expenses written off to account for the uncollectible debtors. Allowance…

Q: The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for…

A: Under the aging method, first the post adjustment in allowance for doubtful accounts is computed.…

Q: In 2016, Winslow Company had net credit sales of $1,250,000. On January 1, 2016, Allowance for…

A: Estimated  uncollectible account = Accounts receivables x 10% = $360,000 x 10% = $36,000

Q: At the end of the year, Brinkley Incorporated’s balance of Allowance for Uncollectible Accounts is…

A:

Q: Martin Incorporated uses the percent-of-credit sales method to estimate uncollectibles. Total sales…

A: Bad debts expense = Credit sales x 5% Balance in allowance for uncollectible accounts after the…

Q: Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning…

A: Uncollectible Accounts Expense = Credit sales during the year  x 2% of all credit sales

Q: Castaway Company provided the following information for the current year: Allowance for doubtful…

A: Allowance for Doubtful Accounts: It estimates the percentage of accounts receivable  which  are…

Q: Lipovetsky Corp. has the following data relating to accounts receivable at the end of the current…

A: The net realizable value for accounts receivable is calculated as gross account receivables minus…

Q: Falafel Hut has sales of $512,630. The cost of goods sold is equal to 60 percent of sales. The…

A: The accounts receivable are the current assets of the company. The increase in the credit sales or…

Q: Louise Company has the following balances:     Net Credit Sales $ 1,200,000 Accounts…

A: Solution: Bad debt expense for the year is as follows: Beginning balance of Bad debt expense = 3,000…

Q: Accounts Receivable has a debit balance of $2,500, and the Allowance for UncollectibleAccounts has a…

A: Net realizable value = Accounts Receivable - Allowance for Uncollectible Accounts

Q: Nissan Inc. is using the percentage of receivables method, set at 5% of ending Accounts Receivable.…

A:

Q: The allowance for uncollectible accounts currently has a credit balance of $200 the company's…

A: Uncollectible accounts receivables are those account receivables to whom business has made credit…

Q: Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning…

A: Uncollectibles = Credit Sale ×2%=$425,000×2%=$8,500

Q: At the beginning of 2009, Pental Company had the following balances:   A/R = $122,000…

A: Given the following information: A/R Beginning balance: $122,000 Allowance for Uncollectible…

Q: Milo Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the…

A: Balance of allowance for uncollectible accounts after adjustments = $4,400 Less: wrote off old…

Q: Marr Co. had the following sales and accounts receivable balances, prior to any adjustments at year…

A: The allowance for doubtful accounts is established to record the estimated bad debts and further…

Q: Zyrah Co. has the following data relating to its accounts receivable durig the current year:…

A: Allowance for uncollectible accounts is provision made for those accounts receivables from which it…

Q: ABC Company had the following information relating to its accounts receivable at December 31, 2024…

A: Net realizable value of accounts receivable = Ending balance of accounts receivable - Ending balance…

Q: amount of net accounts receivable after adjusting entries for 20X5 would be:

A: Increase in allowance for uncollectible = Final amount of allowance for uncollectible required -…

Q: A company has net income of $196,000, a profit margin of 10.00 percent, and an accounts receivable…

A: The question is based on the concept of ratio analysis.

Q: Crimson Inc. recorded credit sales of $750,000, of which $600,000 is not yet due, $100,000 is past…

A: Allowance for Doubtful Accounts - Allowance Account is a contra assets prepare to record provision…

Q: Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning…

A: Uncollectible accounts are those accounts receivables from which amount due on credit sales will not…

Q: Spade Agency separates its accounts receivable into three age groups for purposes of estimating the…

A: Compute the total estimated uncollectible.

Q: If Vabasa, Inc. has an average collection period (ACP) of 52.5 days (assume a 360 day year) and…

A: Average Collection Period helps to know the trend of collection of dues. The formula of Average…

Q: Jefferson uses the percent of sales method of estimating uncollectible receivables. Based on past…

A: Bad debts expense = sales for the year * estimated uncollectible% = $5,550,000 *2% = $111,000

Q: As of January 1, 2021, NUBD Co. had an accounts receivable of P500,000. The sales for January,…

A: Solution: Accounts receivable balance as of March 31, 2021 = March credit sales * 40% = 1600000 *…

Q: Based on the account balances shown below, calculate "Net Sales". Normal Account Balance Account…

A: Net sales  = Sales revenue - Sales discount - Sales return

Q: ance for Sales Discounts $360 (credit). Of the receivables, $56,000 of them are within the 3%…

A: Since the discount of 1680 is expected in future and an allowance is made today, an expense will be…

Q: On June 30, Premier Party Planners had a $35,000 balance in AccountsReceivable and a $2,752 credit…

A:

Q: A company has net credit sales of $750,000 for the year and it estimates that uncollectible accounts…

A: Lets start with understanding of bad debt and allowance for doubtful accounts, Bad debt means a debt…

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.