XYZ Co.'s trial balance before adjusting entries shows the following balances: Debits Credits Accounts Receivable ...
XYZ Co.'s trial balance before adjusting entries shows the following balances:
| Debits | Credits | |
|---|---|---|
| Accounts Receivable | $180,000 | |
| Allowance for Doubtful Accounts | 3,500 | |
| Sales (all on credit) | $1,000,000 |
What is the entry to bad debt expense, assuming that the allowance
is to provide for doubtful accounts on the basis of 5% of gross
accounts receivable?
Select one:
a. $9,000 credit
b. $12,500 credit
c. $9,000 debit
d. $3,500 credit
Homework Answers
Allowance for Doubtful Accounts = Accounts Receivable * 5%
= $180,000 * 5% = $9,000
Bad debt expense = $9000 + 3500 = $12,500 Credit
Option b. is correct answer.
Add Answer to:
XYZ Co.'s trial balance before adjusting entries shows the
following balances:
Debits
Credits
Accounts Receivable
...
XYZ Co.'s trial balance before adjusting entries shows the following balances: Debits Credits Accounts Receivable ...
XYZ Co.'s trial balance before adjusting entries shows the following balances: Debits Credits Accounts Receivable $180,000 Allowance for Doubtful Accounts 3,500 Sales (all on credit) $1,000,000 What is the entry to bad debt expense, assuming that the allowance is to provide for doubtful accounts on the basis of 1% of net sales? Select one: a. $13,500 credit b. $1,000 credit c. $10,000 credit d. $100,000 credit
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he trial balance before adjustment of Windsor, Inc. shows the following balances: Dr. Cr. Accounts r...
he trial balance before adjustment of Windsor, Inc. shows the
following balances:
Dr.
Cr.
Accounts receivable
$104,800
Allowance for doubtful accounts
1,970
Sales revenue (all on credit)
$672,000
Sales returns and allowances
29,100
Give the entry for bad debt expense for the current year
assuming the allowance should be 4% of gross accounts receivable.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles...
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The trial balance before adjustment for Pina Company shows the following balances. Cr. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue Dr. $84,700 2,700 $462,400 Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) 1. To obtain additional cash, Pina factors without recourse $23,300 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored. 2. To obtain a 1-year loan of $61,600, Pina pledges...
he trial balance before adjustment of Windsor, Inc. shows the
following balances:
Dr.
Cr.
Accounts receivable
$104,800
Allowance for doubtful accounts
1,970
Sales revenue (all on credit)
$672,000
Sales returns and allowances
29,100
Give the entry for bad debt expense for the current year
assuming the allowance should be 4% of gross accounts receivable.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles...
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