Question

Use the following to answer questions 8-11 The following information pertains to JR, Inc. for the month of November: Credit sales Accounts payable Accounts receivable Allowance for Uncollectible accounts Cash sales $880,000 35,000 81,000 500 credit 200,000 JR uses the percent of receivables method and estimates it will not collect 5% of accounts receivable. Chapter 5 Page 5-1 Determine the ending balance for the Allowance for Uncollectible Accounts 9. S Determine the appropriate amount to record for Bad Debt expense 10.$_ Assuming the Allowance for Uncollectible accounts had a $100 debit balance instead, determine the amount to record for Bad Debt expense 11. $_ After recording bad debt expense the Net Accounts Receivable is:

Answer 1

8.
Ending balance for allowance for uncollectible accounts = Ending Accounts receivables * % Uncollectible = 81000 * 5%	4050
9.
Bad debts expense = Ending balance for allowance for uncollectible accounts - Unadjusted Credit balance of allowance for uncollectible accounts = 4050 - 500	3550
10.
Bad debts expense = Ending balance for allowance for uncollectible accounts + Unadjusted Debit balance of allowance for uncollectible accounts = 4050 + 100	4150

11.
Accounts receivables	81000
(-) Allowance for uncollectible accounts	4050
Net accounts receivables	76950