Uncollectible Accounts-Percentage of Sales Rossin's Racers has total credit sales for the year of $280,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of $570. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Bad Debt Expense Dec. 31 Allowance for Doubtful Accounts - Feedback 2. Allowance for Doubtful Accounts has a debit balance of $360.

Uncollectible Accounts-Percentage of Sales Rossin's Racers has total credit sales for the year of $280,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated bad debt expense. Assume the following independent conditions existed prior to the adjustment: 1. Allowance for Doubtful Accounts has a credit balance of $570. Page: DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Bad Debt Expense Dec. 31 Allowance for Doubtful Accounts - Feedback 2. Allowance for Doubtful Accounts has a debit balance of $360.

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Description: Uncollectible Accounts-Percentage of SalesRossin's Racers has total credit sales for the year of $280,000 and estimates that 3% ofits credit sales will be uncollectible. Record the end-of-period adjusting entry onDecember 31, in general journal form

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Percent of sales method At year-end, December 31, Ying Company estimates its bad debts as 0.5% of its annual credit sales of $975,000. Ying records its Bad Debts Expense for that estimate. 1. Prepare the journal entry to record bad debts. 2. Compute the ending balance of the Allowance for Doubtful Accounts if it has a $5,000 beginning credit balance.
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Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Expected Percent Uncollectible 1.25% 2.00 6.50 Accounts Receivable Age of Accounts Receivable $ 830,000 Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 254,000 86,000 38,000 12,000 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Percent Uncollectible (#.##%) Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles X = = = |||| 32.75 68.00 Estimated Uncollectible $ 0
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