Homework Answers
1.
Computation bad debt expense is:
Bad debt expense = Balance of uncollectible account - Credit balance of allowance for doubtful account
= $10,000 - $600
= $9,400
Hence, the expense of bad debt is $9,400.
Working Note:
Computation the balance of uncollectible account is:
Balance of uncollectible account = Accounts receivable * Percentage of uncollectible account
= $100,000 * 0.10
= $10,000
Hence, the balance of uncollectible account is $10,000.
2.
Computation of bad debt expense is:
Bad debt expense = Balance of uncollectible account + Debit balance of allowance for doubtful account
= $10,000 + $500
= 10,500
Hence, the expense of bad debt is $10,500.
Working Note:
Computation the balance of uncollectible account is:
Balance of uncollectible account = Accounts receivable * Percentage of uncollectible account
= $100,000 * 0.10
= $10,000
Hence, the balance of uncollectible account is $10,000.
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Question 10 Compute bad debt expense based on the following information: RLF Company estimates that 10%...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $606,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,150. *(a) Your answer is correct. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $606,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,150. *(a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Brief Exercise 8-6 Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense. It...
Brief Exercise 8-6 Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $450,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,140. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit...
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Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable b...
Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Dorothy Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? 10,000 Bad Debt Expense 10,000 Accounts Receivable 5,000 Bad Debt Expense 5,000 Allowance for Doubtful Accounts 12,500 Bad Debt Expense 12,500 Allowance for Doubtful Accounts 17,500 Bad...
Rode Company estimates bad debt expense at 1% of credit sales. The company reported accounts receivable...
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19. Tanning Company analyzes its receivables to estimate bad debt expense The accounts receivable balance is...
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Dejavu Company has been in business for several years and has the following information for its operations in the current year: Total credit sales Bad debts written off in the year Accounts receivable balance on December 31 (after writing off the bad debts above) $3,081,000 80,000 510,000 Assume that DejaVu Company decides to estimate its bad debts expense at 2% of credit sales. i. What amount of bad debts expense will the company record if it has a credit balance...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $606,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,150. *(a) Your answer is correct. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $606,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,150. *(a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Brief Exercise 8-6 Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $450,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,140. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit...
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Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $250,000 and credit sales are $1,000,000. Management estimates that 6% of accounts receivable will be uncollectible. What adjusting entry will Dorothy Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? 10,000 Bad Debt Expense 10,000 Accounts Receivable 5,000 Bad Debt Expense 5,000 Allowance for Doubtful Accounts 12,500 Bad Debt Expense 12,500 Allowance for Doubtful Accounts 17,500 Bad...
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