The Exam Fun Co. had Accounts Receivable of $100,000 and a credit balance of $2.000 in Allowance for Doubtful Accounts on 12/31/10. The company estimates that 5% of the receivables will not be collected. Which of the following is the correct journal entry for recording the estimate of bad debt expense? A dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3.000 B. dr. Bad Debt Expense 5,000 and or Accounts Receivable 3,000 O O C. dr. Bad Debt Expense 5,000 and or Allowance for Doubtful Accounts 5,000 D. dr. Bad Debt Expense 7,000 and cr. Allowance for Doubtful Accounts 7,000

The Exam Fun Co. had Accounts Receivable of $100,000 and a credit balance of $2.000 in Allowance for Doubtful Accounts on 12/31/10. The company estimates that 5% of the receivables will not be collected. Which of the following is the correct journal entry for recording the estimate of bad debt expense? A dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3.000 B. dr. Bad Debt Expense 5,000 and or Accounts Receivable 3,000 O O C. dr. Bad Debt Expense 5,000 and or Allowance for Doubtful Accounts 5,000 D. dr. Bad Debt Expense 7,000 and cr. Allowance for Doubtful Accounts 7,000

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 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.
Wolfe, Inc. had credit sales for the period of $146,000. The balance in Allowance for Doubtful Accounts is a debit of $663. If Wolfe estimates that 5% of credit sales will be uncollectible, what is the required journal entry to record estimated uncollectible accounts? O A. Debit Bad Debt Expense, $7,300; credit Allowance for Uncollectible Accounts, $7,300. O B. No entry is required. O C. Debit Bad Debt Expense, $6.637; credit Allowance for Uncollectible Accounts, $6.637. O D. Debit Bad Debt Expense, $7,963; credit Allowance for Uncollectible Accounts, S7,963.
Nichols Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 4% of accounts receivable and 1% of credit sales will be uncollectible. What adjusting entry will Nichols Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? Group of answer choices DR Bad Debt Expense and CR Allowance for Doubtful Accounts $10,000 DR Bad Debt Expense and CR Allowance for Doubtful Accounts for $7,500 DR Bad Debt Expense and CR Accounts Receivable for $7,500 DR Bad Debt Expense and CR Allowance for Doubtful Accounts for $7,000
Bidiyah Co. estimates that RO 8,000 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 1,200 debit balance, the company should record a: Select one: O a debit to Bad Debt Expense for RO 8,000. O b. debit to Bad Debt Expense for RO 6,800. O c cedit to Allowance for Doubtful Accounts for RO 8,000. O d. None of the answers are correct O e. debit to Bad Debt Expense for RO 9,200.
Gabby Renovation has a total accounts receivable of $600,000. Its analysis indicates that $30,000 of accounts receivable will be uncollectible. The Allowance for Doubtful Accounts has a credit balance of $8,000. What is the adjusting entry to the Allowance for Doubtful Accounts? O a Debit of $30,000 Credit of $22,000 Credit of $30,000
Bidiyah Co. estimates that RO 8,000 of its accounts receivable to be uncollectible. If Allowance for Doubtful Accounts has a RO 1,200 debit balance, the company should record a Select one: O a debit to Bad Debt Expense for RO 8,000. O b.debit to Bad Debt Expense for RO 6,800. O credit to Allowance for Doubtful Accounts for RO 8,000. O d. None of the answers are correct O e debit to Bad Debt Expense for RO 9,200.
The following information concerns Complex, Inc.: Accounts receivable, 12/31/X7 $56,000 Credit sales during X7 $189,000 Allowance for doubtful accounts, 12/31/X7 $1,500 credit Bad debt expense is determined using the percentage of sales method. The company believes that 4% of sales will never be collected. What would be the balance in allowance for doubtful accounts after the adjusting entry? Select one: O a. $9,060 O b. $7,560 O c. $1,500 O d. $6,060 Oe. $2,240
Whispering SA reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue No. Account Titles and Explanation (a) Dr. €140,800 (b) Prepare the journal entry to record bad debt expense assuming Whispering estimates bad debts at (a) 4% of accounts receivable assuming Allowance for Doubtful Accounts has the balance given in the problem data, and (b) 4% of accounts receivable assuming Allowance for Doubtful Accounts has a € 1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Cr. €2,480 816,800 Debit Credit
The following balances were gathered from ZAP Company's trial balance: Credit sales 2,000,000 Accounts receivable, beg 200,000 Accounts receivable, end 1,200,000The company's policy is to recognize doubtful accounts as 5% of accounts receivable.Determine the amount of bad debt expense that should be recognized for the period.
Accounting XYZ Company had the following account balances: Accounts Receivable $20,000, Allowance for Doubtful Accounts $2,000, and Net Credit Sales $100,000. The company estimates that 5% of credit sales will be uncollectible. Prepare the adjusting journal entry to record the estimated bad debt expense.
Blossom Company uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $310000 and credit sales are $3110000. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Blossom Company make if the Allowance for Doubtful Accounts has a credit balance of $3100 before adjustment?