Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Question

Question

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method

At the end of the current year, Accounts Receivable has a balance of $465,000; Allowance for Doubtful Accounts has a debit balance of $4,000; and sales for the year total $2,090,000. Bad debt expense is estimated at 1/4 of 1% of sales

a. Determine the amount of the adjusting entry for uncollectible accounts

b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense

Accounts Receivable	$
Allowance for Doubtful Accounts	$
Bad Debt Expense

c. Determine the net realizable value of accounts receivable

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #1

a) Amount of the adjusting entry = 2090000*1%*1/4 = 5225

b) Account receivable = 465000

Allowance for doubtful accounts = 5225-4000 = 1225

Bad debt expense = 5225

c) Net realizable value = 465000-1225 = 463775

Add a comment

Answer 2

Similar Homework Help Questions

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $805,000; Allowance for Doubtful Accounts has a debit balance of $7,000; and sales for the year total $3,620,000. Bad debt expense is estimated at 3/4 of 1% of sales a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable Allowance...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $595,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,680,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $600,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,700,000. Bad debt expense is estimated at 3/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $3,750,000, Allowance for Doubtful Accounts has a credit balance of $22,750, and sales for the year total $48,400,000. Bad Debt Expense is estimated at ¾ of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts Receivable $...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $900,000; Allowance for Doubtful Accounts has a debit balance of $8,000; and sales for the year total $4,050,000. Bad debt expense is estimated at 1/2 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ 20,250 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance Debit (Credit) Accounts...
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $400,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and sales for the year total $1,800,000. Bad debt expense is estimated at l/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts 4,500 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $510,000; Allowance for Doubtful Accounts has a credit balance of $4,500; and sales for the year total $2,300,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for un-collectible accounts. $ 2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful...
Module 2 Assignment Percent of Sales Method At the end of the current year, Accounts Receivable...

Module 2 Assignment Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $540,000; Allowance for Doubtful Accounts has a credit balance of $5,000; and sales for the year total $2,430,000. Bad debt expense is estimated at 3/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. $ 18,225 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Adjusted Balance...
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,310,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,600. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable...

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance...

Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $495,000; Allowance for Doubtful Accounts has a debit balance of $4,500; and sales for the year total $2,230,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $19,800. a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance...

Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Homework Answers

Add Answer to:
Percent of Sales Method At the end of the current year, Accounts Receivable has a balance...

Post as a guest

Earn Coins