The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $844 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $101. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of a.$743 b.$945 c.$844 d.$101

Required:1. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31

16 In “Percentage of accounts receivables method”, the uncollectable accounts receivables percentage is estimated based on ____________________. a. Past experience b. None of the given options c. The impact by current conditions such as economic trends and customer difficulties. d. Both past experience and the impact by current conditions such as economic trends and customer difficulties

. Which method of recording bad debt loss is consistent with accrual accounting? a. Allowance method b. Direct writeoff method c. Percent of sales method d. Percent of accounts receivable method - When the allowance method is used, the entry to record the writeoff of a specific account would Decrease both accounts receivable and the allowance b. Decrease accounts receivable and increase allowance Increase both accounts receivable and the allowance d. Increase accounts receivable and decrease the allowance 3. Under the allowance method, the journal entry to record the writeoff of a specific uncollectible account a. Affects neither net income nor working capital b. Affects neither net income nor accounts receivable c. Decreases both net income and working capital d. Decreases both net income and accounts receivable 4. Under the allowance method, the entries at the time of collection of an account previously written off would a. Decrease the allowance for doubtful accounts b. Increase net…

A B UD C |7. If bad debts expense is determined by estimating uncollectible accounts receivable, the entry to record the write-off of a specific uncollectible account would decrease: allowance for uncollectible accounts. net income. net book value of accounts receivable. bad debts expense. 8. If management intentionally underestimates bad debts expense, then net income is A overstated and assets are understated. B understated and assets are overstated C understated and assets are understated. D overstated and assets are overstated 9. Which of these items will not appear in the retained earnings statement? A Net Loss B Prior period adjustment, net of taxes с Cumulative effect on prior years of a change in accounting principles, net of tax D Dividends. E All of the above appear in the statement of retained earnings

The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $656 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $193. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of Oa. $849 Ob. $656 Oc. $193 Od. $463

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 42,000 Accounts receivable Percent uncollectible Total $ 600,000 0 $ 402,000 Req A 1% Req B and C 1 to 30 $ 96,000 Complete this question by entering your answers in the tabs below. 2% 5% 61 to 90 Exercise 7-15 (Algo) Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,600 credit. $ 24,000 7% c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,600 debit. Over 90 $ 36,000 10% Estimate the balance of the Allowance for Doubtful…

3 The aging of accounts receivable method uses __________________to estimate the allowance amount. a. None of the given options b. Current receivables information c. Both past and current receivables information d. Past receivables information

Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a.  Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $7,040. Amount added   Ending balance   b.  Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 3% of credit sales, which totaled $1,009,000 for the year. Amount added   Ending balance