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Question 7 Concord Corporation had record sales in 2020. It began 2020 with an Accounts Receivable balance of $490,000 and an Allowance for Doubtful Accounts of $36,000. Concord recognized credit sales during the year of $6,665,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,500 of accounts that were deemed to be uncollectible, although one customer whose $4,300 account had been written...
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Problem 7-03 (Part Level Submission) Monty Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $460,000 and an Allowance for Doubtful Accounts of $32,000. Monty recognized credit sales during the year of $6,695,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,100 of accounts that were deemed to be uncollectible, although one customer whose $3,600 account...
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Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $170000 and credit sales are $1710000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Cheyenne Corp. make if the Allowance for Doubtful Accounts has a credit balance of $3400 before adjustment? Bad Debt Expense 5100 Allowance for Doubtful Accounts 5100 Bad Debt Expense 5100 Accounts Receivable 5100 34200 Bad Debt Expense 34200 Accounts Receivable Bad Debt...
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At the end of the current year, the accounts receivable account
has a balance of $2,875,000 and sales for the year total
$34,500,000.
Determine the amount of the adjusting entry to provide for
doubtful accounts under each of the following independent
assumptions:
a. The allowance account before adjustment has
a negative balance of $(18,500). Bad debt expense is estimated at ½
of 1% of net sales.
$
b. The allowance account before adjustment has
a negative balance of $(18,500). An...
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Blue Spruce Corp. had net sales in 2020 of $2.1 million. At December 31, 2020, before adjusting entries, the balances in selected accounts were as follows: Accounts Receivable $237,600 debit; Allowance for Doubtful Accounts $2,600 debit. Assume Blue has examined the aging of the accounts receivable and has determined the Allowance for Doubtful Accounts should have a balance of $28,800, prepare the December 31, 2020 journal entry to record the adjustment to Allowance for Doubtful Accounts. (Credit account titles are...
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Providing for Doubtful Accounts
At the end of the current year, the accounts receivable account
has a debit balance of $1,154,000 and sales for the year total
$13,090,000.
The allowance account before adjustment has a credit balance of
$15,600. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a credit balance of
$15,600. An aging of the accounts in the customer ledger indicates
estimated doubtful accounts of $49,900.
The allowance account before...
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At January 1, 2020, the credit balance of Sarasota Corp.’s
Allowance for Doubtful Accounts was $409,000. During 2020, the bad
debt expense entry was based on a percentage of net credit sales.
Net sales for 2020 were $80 million, of which 89% were on account.
Based on the information available at the time, the 2020 bad debt
expense was estimated to be 0.80% of net credit sales. During 2020,
uncollectible receivables amounting to $505,500 were written off
against the allowance...
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At the end of the current year, the accounts receivable account
has a debit balance of $895,000 and sales for the year total
$10,150,000.
a. The allowance account before adjustment has a credit balance
of $12,100. Bad debt expense is estimated at 1/2 of 1% of
sales.
b. The allowance account before adjustment has a credit balance
of $12,100.An aging of the accounts in the customer ledger
indicates estimated doubtful accounts of $38,700.
c. The allowance account before adjustment has...
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At the end of the current year, the accounts receivable account
has a debit balance of $725,000 and sales for the year total
$8,220,000.
The allowance account before adjustment has a debit balance of
$9,800. Bad debt expense is estimated at 3/4 of 1% of sales.
The allowance account before adjustment has a debit balance of
$9,800. An aging of the accounts in the customer ledger indicates
estimated doubtful accounts of $31,400.
The allowance account before adjustment has a credit...
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Estimating and Recording Bad Debt Estimates and
Write-offs; Reporting of Accounts Receivable
At December 31, 2020, its annual year-end, the accounts of Sun
Systems Inc. show the following.
1. Sales revenue for 2020, $288,000, of which one-sixth was on
account.
2. Allowance for doubtful accounts, balance December 31, 2019,
$1,440 credit.
3. Accounts receivable, balance December 31, 2020 (prior to any
write-offs of uncollectible accounts during 2020), $28,880.
4. Uncollectible accounts to be written off, December 31, 2020,
$1,680.
5....
Question 7 Concord Corporation had record sales in 2020. It began 2020 with an Accounts Receivable balance of $490,000 and an Allowance for Doubtful Accounts of $36,000. Concord recognized credit sales during the year of $6,665,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,500 of accounts that were deemed to be uncollectible, although one customer whose $4,300 account had been written...
Problem 7-03 (Part Level Submission) Monty Corp. had record sales in 2020. It began 2020 with an Accounts Receivable balance of $460,000 and an Allowance for Doubtful Accounts of $32,000. Monty recognized credit sales during the year of $6,695,000 and made monthly adjusting entries equal to 0.5% of each month's credit sales to recognize bad debt expense. Also during the year, the company wrote off $36,100 of accounts that were deemed to be uncollectible, although one customer whose $3,600 account...
Cheyenne Corp. uses the percentage of receivables method for recording bad debts expense. The accounts receivable balance is $170000 and credit sales are $1710000. Management estimates that 5% of accounts receivable will be uncollectible. What adjusting entry will Cheyenne Corp. make if the Allowance for Doubtful Accounts has a credit balance of $3400 before adjustment? Bad Debt Expense 5100 Allowance for Doubtful Accounts 5100 Bad Debt Expense 5100 Accounts Receivable 5100 34200 Bad Debt Expense 34200 Accounts Receivable Bad Debt...
Blue Spruce Corp. had net sales in 2020 of $2.1 million. At December 31, 2020, before adjusting entries, the balances in selected accounts were as follows: Accounts Receivable $237,600 debit; Allowance for Doubtful Accounts $2,600 debit. Assume Blue has examined the aging of the accounts receivable and has determined the Allowance for Doubtful Accounts should have a balance of $28,800, prepare the December 31, 2020 journal entry to record the adjustment to Allowance for Doubtful Accounts. (Credit account titles are...
Estimating and Recording Bad Debt Estimates and
Write-offs; Reporting of Accounts Receivable
At December 31, 2020, its annual year-end, the accounts of Sun
Systems Inc. show the following.
1. Sales revenue for 2020, $288,000, of which one-sixth was on
account.
2. Allowance for doubtful accounts, balance December 31, 2019,
$1,440 credit.
3. Accounts receivable, balance December 31, 2020 (prior to any
write-offs of uncollectible accounts during 2020), $28,880.
4. Uncollectible accounts to be written off, December 31, 2020,
$1,680.
5....