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 81,000 500 200,000 credit JR uses the percent of receivables method and estimates it will not collect 5% of accounts receivable. Chapter 5 Page 5-1 8. $ Determine the ending balance for the Allowance for Uncollectible Accounts 9. $ _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

Statement showing Computations
Particulars	Amount
8) Accounts receivable	81,000.00
Allowance for uncollectible Accounts in %	5%
Ending balance for Allowance for uncollectible accounts = 81000*5%	4,050.00
9) Total Allowance required	4,050.00
Existing balance in uncollectible accounts Cr	500.00
Bad Debt Expense = 4050 - 500	3,550.00
10) Total Allowance required	4,050.00
Existing balance in uncollectible accounts Dr	100.00
Bad Debt Expense = 4050 + 100	4,150.00
11)
Accounts receivable	81,000.00
Allowance	4,050.00
Net Account receivable	76,950.00