Greco Inc. has a debit balance in its Allowance account of $530 before the adjustment for...
-
Greco Inc. has a debit balance in its Allowance account of $530 before the adjustment for bad debts. The ending accounts receivable equal $49,000 and Greco estimates that 10% of these accounts receivable will be uncollectible. Which of the following is false?
A) The amount of the adjusting entry will be more than the balance in the Allowance for Doubtful Accounts account after adjustment.B) The ending Balance in the Allowance for Doubtful Accounts account will be $4,900
C) The existing balance in the Allowance for Doubtful account will be used in determining the amount for the adjusting entryD) Allowance for Doubtful Accounts will be credited for $5,430
E) The ending Balance in the Allowance for Doubtful Accounts account will be $5,430
Homework Answers
| Let us analyze the situation: | |||||||||
| It is estimated that 10% of these accounts receivable will be uncollectible | |||||||||
| Means the allowance for account receivable should have credit balance equal to = 10% *$49000 | |||||||||
| =$4900 | |||||||||
| Therefore statement B is correct. | |||||||||
| In the beginning, the allowance for a doubtful account has a debit balance of $530 | |||||||||
| therefore adjustment shall be made to have a credit balance of $4900 | |||||||||
| =$530+4900 | |||||||||
| =$5430 | |||||||||
| Therefore statement A, C, D is correct. | |||||||||
| Hence the statement E is incorrect. | |||||||||
| Hence the correct option is E | |||||||||
Add Answer to:
Greco Inc. has a debit balance in its Allowance account of $530
before the adjustment for...
accounts receivable has a debit balance of $150,000 allowance for doubtful accounts has a credit balance...
accounts receivable has a debit balance of $150,000 allowance for doubtful accounts has a credit balance of $5000 Sales on account as a credit balance of $400,000 sales returns/allowance has a debit balance of $50,000 The company estimates 5% of account receivable will be uncollectible with a balance sheet allowance method calculate the ending balance of the allowance for doubtful accounts in the amount recorded for bad debt expense what is an NRV of A/R after bad debt expense adjustment...
3)At December 31, 2010, the trial balance of Worcester Company contained the following amounts before adjustment...
3)At December 31, 2010, the trial balance of Worcester Company contained the following amounts before adjustment Debits $385,000 Credits Accounts receivable Allowance for doubtful accounts Sales $2,000 950,000 Based on the information given, which method of accounting for bad debts is Worcester Company using-the direct write-off method or the allowance method? Prepare the adjusting entry at December 31, 2010, for bad debts expense under each of the following independent assumptions (1) An aging schedule indicates that $11.750 of accounts receivable...
Patterson Co. had a debit balance of $1,000 in its Allowance for Doubtful Accounts account on...
Patterson Co. had a debit balance of $1,000 in its Allowance for Doubtful Accounts account on December 31,2015. Their net sales for the year totaled $700,000 and they had $100,000 in their Accounts Receivable account. If they estimate their Bad Debt for the year to be 10% of Accounts Receivable, their year end adjusting entry for Bad Debts would be: A. Debit Bad Debt Expense and credit Allowance for Doubtful Accounts for $9,000. B. Debit Bad Debt Expense and credit...
Credit sales for Sparrow Inc. during the year were $505,000. Management of Sparrow estimates that uncollectible...
Credit sales for Sparrow Inc. during the year were $505,000. Management of Sparrow estimates that uncollectible accounts are 2% of credit sales. The balance in the Allowance for Doubtful Accounts account before the adjustment for bad debts is a debit of $860. Which of the following is true? A) The ending balance in the Allowance for Doubtful Accounts account will be $10,100 B) The ending balance in the Allowance for Doubtful Accounts account will be $10,960 C) The ending balance...
Calculator Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the...
Calculator Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares an analys of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the bad debt expense for the year? a. debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200 b. debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200 c. debit...
At December 31, 2019, the trial balance of Larkspur Company contained the following amounts before adjustment....
At December 31, 2019, the trial balance of Larkspur Company contained the following amounts before adjustment. Credit Debit $377,000 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 1,100 955,800 Based on the information given, which method of accounting for bad debts is Larkspur Company using-the direct write-off method or the allowance method? (b) Prepare the adjusting entry at December 31, 2019, for bad debt expense, assuming an aging schedule indicates that $12.500 of accounts receivable will be uncollectible. (c)...
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows...
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $132,500, allowance for doubtful accounts of $945 (credit) and sales of $1,065,000. If uncollectible accounts are estimated to be 8% of accounts receivable, what is the amount of the bad debts expense adjusting entry?
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows A...
Craigmont uses the allowance method to account for uncollectible accounts. Its year-end unadjusted trial balance shows Accounts Receivable of $132,500, allowance for doubtful accounts of $945 (credit) and sales of $1,065,000. If uncollectible accounts are estimated to be 8% of accounts receivable, what is the amount of the bad debts expense adjusting entry?
Mazie Supply Co. uses the percent of accounts receivable method On December 31, it has outstanding...
Mazie Supply Co. uses the percent of accounts receivable method On December 31, it has outstanding accounts receivable of $71,500, and it estimates that 6% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has (a) a $1,216 credit balance before the adjustment (b) a $358 debit balance before the adjustment View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense...
The Allowance for Bad Debts account has a credit balance of $8,300 before the adjusting entry for bad debts expense. Aft...
The Allowance for Bad Debts account has a credit balance of $8,300 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $14,700. What will be the balance of the Allowance for Bad Debts reported on the balance sheet? a $6,400 b $13,230 c $14,700 d $23,000
3)At December 31, 2010, the trial balance of Worcester Company contained the following amounts before adjustment Debits $385,000 Credits Accounts receivable Allowance for doubtful accounts Sales $2,000 950,000 Based on the information given, which method of accounting for bad debts is Worcester Company using-the direct write-off method or the allowance method? Prepare the adjusting entry at December 31, 2010, for bad debts expense under each of the following independent assumptions (1) An aging schedule indicates that $11.750 of accounts receivable...
Calculator Allowance for Doubtful Accounts has a debit balance of $2,300 at the end of the year (before adjustment). The company prepares an analys of customers' accounts and estimates the amount of uncollectible accounts to be $31,900. Which of the following adjusting entries is needed to record the bad debt expense for the year? a. debit Bad Debt Expense, $34,200; credit Allowance for Doubtful Accounts, $34,200 b. debit Allowance for Doubtful Accounts, $34,200; credit Bad Debt Expense, $34,200 c. debit...
At December 31, 2019, the trial balance of Larkspur Company contained the following amounts before adjustment. Credit Debit $377,000 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 1,100 955,800 Based on the information given, which method of accounting for bad debts is Larkspur Company using-the direct write-off method or the allowance method? (b) Prepare the adjusting entry at December 31, 2019, for bad debt expense, assuming an aging schedule indicates that $12.500 of accounts receivable will be uncollectible. (c)...
Mazie Supply Co. uses the percent of accounts receivable method On December 31, it has outstanding accounts receivable of $71,500, and it estimates that 6% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has (a) a $1,216 credit balance before the adjustment (b) a $358 debit balance before the adjustment View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense...
Most questions answered within 3 hours.
-
Assume one of your finals has 50 questions on it, and
lucky for you, it's all...
asked 15 minutes ago -
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 1 hour ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 1 hour ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 2 hours ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 2 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 2 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 3 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 6 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 7 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 7 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 7 hours ago -
When a metal rod is heated, not only its resistance but also its
length and crossâsectional...
asked 7 hours ago