Apple has an AR balance at the beginning of the year of $115 with an Allowance for Bad Debts of $6. During the year, it makes $530 of sales on account and collects $520 from its customers related to AR. In addition, one account of $8 known to be uncollectible is written-off. At the end of the year management estimates that the reserve for uncollectible accounts should be $9. Assuming these were the only transactions for the year complete the table below:
Balance
AR:
Bad Debt Expense:
Net Income:
Apple has an AR balance at the beginning of the year of $115 with an Allowance...
At year-end (December 31), Apple Company estimates its bad debts as 1.0% of its annual credit sales of $10,394,000. Apple records its Bad Debts Expense for that estimate. On the following March 1, Apple decides that the $1,650 account of M. Koncz is uncollectible and writes it off as a bad debt. On June 5, Koncz unexpectedly pays the amount previously written of 1. Prepare the journal entries for these transactions. Account Name Debit Credit Date At each calendar year-end,...
The Allowance for Bad Debts account had a balance of $6,100 at the beginning of the year and $7700 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $11,000 was recognized. Required: Calculate the total amount of past-due accounts receivable that were written off as uncollectible during the year. (Hint Make a T- account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the...
The Allowance for bad debt account had a balance of $19,200 at the beginning of the year and $24,400at the end of the year. During the year (including the year end adjustment), bad debts expense of $36,000 was recognized. Calculate the total amount of past due accounts receivable that were written off as uncollectible during the year. (hint: make a T-Account for the allowance for bad debts account, plug in the amounts that you know, and solve for the missing...
The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $310,000; allowance for uncollectible accounts at the beginning of the year, $20,000 (credit balance); credit sales during the year, $1,000,000; accounts receivable written off during the year, $11,000; cash collections from customers, $900,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance...
The Allowance for Bad Debts account had a balance of $7,100 at the beginning of the year and $9,700 at the end of the year. During the year (including the year-end adjustment), bad debts expense of $13,000 was recognized. Required: off as uncollectible during the year. (Hint Make a T-account for the Allowance for Bad Debts account, plug in the amounts that you know, and solve for the missing amount.) Bad debt write-offs
The following information relates to a company's accounts receivable: accounts recelvable balance at the beginning of the year $350,000; allowance for uncollectible accounts at the beginning of the year, $24,000 (credit balance); credit sales during the year, $1,200,000; accounts receivable written off during the year, $15,000: cash collections from customers, $1.100,000. Assuming the company estimates that future bad debts will equal 12% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts 2. Calculate...
The following information relates to a company's accounts receivable: accounts receivable balance at the beginning of the year $300,000, allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000, cash collections from customers, $1450,000 Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable 1. Calculate the year-end balance in the allowance for uncollectible accounts 2. Calculate...
At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful Accounts were $77,000 and $5,144 (credit), respectively. During the current year, credit sales were $463,000 and collections on account were $341,000. In addition, $3,800 in uncollectible accounts were written off, and $750 of accounts previously written off were collected during the year. If management estimates bad debts based on 3 percent of total credit sales, determine the net realizable value of accounts receivable at December 31,...
QUESTION 1 At the beginning of 2015, the balances for Accounts Receivable and Allowance for Doubtful Accounts were $77,000 and $5,144 (credit), respectively. During the current year, credit sales were $463,000 and collections on account were $341,000. In addition, $3,800 in uncollectible accounts were written off, and $750 of accounts previously written off were collected during the year. If management estimates bad debts based on 3 percent of total credit sales, determine the net realizable value of accounts receivable at...
0. Allowance for Doubtful Accounts on the balance sheet: a is offset against total current assets. b. increases the cash realizable value of accounts receivable. c appears under the heading "Other Assets." d. is deducted from accounts receivable. or a company with significant uncollectible receivables, the direct write-off method is unsuitable because: A) it overstates liabilities on the balance sheet. B) it violates the matching principle. C) direct write-offs would be immaterial. D) it is not allowed for tax reasons....