Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...

Question

Question

Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000 for the period. It estimates that perce

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Requirement 1

Transaction	General Journal	Debit	Credit
(a)	Bad debts expense	$ 2,820.00
	Allowance for doubtful accounts		$ 2,820.00
	(To record bad debts expense)

The adjusted balance is left as it is when recording bad debts expense. In credit sales percentage method the estimated % to be lost are directly recorded as bad debts.

.Requirement 2

Transaction	General Journal	Debit	Credit
(b)	Bad debts expense	$ 3,490.00
	Allowance for doubtful accounts		$ 3,490.00
	(To record bad debts expense)

.Working for part 2

Estimated balance of allowance for uncollectables	$ 3,900.00	Cr
Balance in Allowance for uncollectable account (Cr)	$ 410.00	Cr
Total bad debts to be recorded	$ 3,490.00	Cr

Add a comment

Answer 2

Similar Homework Help Questions

Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods...

Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estimates that 1 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,000 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of...
Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that...

Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,900 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $400. Prepare the...
Which of these methods is required by GAAP? Aging of accounts receivables Percentage of credit sales Either the per...

Which of these methods is required by GAAP? Aging of accounts receivables Percentage of credit sales Either the percentage of credit sales or aging of accounts receivables Assume that Simple Co. had credit sales of $290,000 and cost of goods sold of $170,000 for the period. It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts...

Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000...

Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,000. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $250. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense
Assume that Simple Co. had credit sales of $253,000 and cost of goods sold of $153,000...

Assume that Simple Co. had credit sales of $253,000 and cost of goods sold of $153,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,300. Before the end of period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $280. What amount of Bad Debt Expense would the company record as an end of period adjustment? Bad Debt Expense
Assume that Simple Co. had credit sales of $246,000 and cost of goods sold of $146,000...

Assume that Simple Co. had credit sales of $246,000 and cost of goods sold of $146,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2,600. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $210. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the a...

Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,900. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $340. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for...

Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $150. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense
Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for...

Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $150. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Assume Simple Co. had credit sales of $255,000 and cost of goods sold of $155,000 for...

Assume Simple Co. had credit sales of $255,000 and cost of goods sold of $155,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $300. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?

Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...

Homework Answers

Add Answer to:
Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...

Post as a guest

Earn Coins

Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods...

Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that...

Which of these methods is required by GAAP? Aging of accounts receivables Percentage of credit sales Either the per...

Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000...

Assume that Simple Co. had credit sales of $253,000 and cost of goods sold of $153,000...

Assume that Simple Co. had credit sales of $246,000 and cost of goods sold of $146,000...

Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the a...

Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for...

Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for...

Assume Simple Co. had credit sales of $255,000 and cost of goods sold of $155,000 for...

Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...

Homework Answers

Add Answer to: Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...

Post as a guest

Earn Coins

Add Answer to:
Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...