True/False Indicate whether the statement is true or false, 1. Receivables from company owners and officers...
11. The two methods of accounting for uncollectible receivables are the allowance method and the a. direct write-off method b. interest method c. wawilinmethod d. cost method 12. Allowance for Doubtful Accounts has a debit balance of $2,500 at the end of the year before adjustment), and bad debt expense is estimated at 4% of net credit sales. If net credit sales are $800,000, the amount of the adjusting entry to record the estimate of the uncollectible accounts is a....
5. The Lowery Co. uses the direct write-off method of accounting for uncollectible accounts receivable. Lowery has a customer whose accounts receivable balance has been determined to likely be wrotestable The entry to write off this account would be which oflua following?: a. debit Sales Returns and Allowance, credit Accounts Receivable b. debit Bad Debt Expense; credit Allowance for Doubtful Accounts c. debit Allowance for Doubtful Accounts; credit Accounts Receivable. d. debit Bad Debt Expense; credit Accounts Receivable Abbott Company...
Multiple Choice Question 113 Blue Spruce Corp. uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $400000 and credit sales are $1600000. Management estimates that 6 % of accounts receivable will be uncollectible. What adjusting entry will Blue Spruce Corp. make if the Allowance for Doubtful Accounts has a credit balance of $4000 before adjustment? Bad Debt Expense 16000 Accounts Receivable 16000 Bad Debt Expense 20000 Allowance for Doubtful Accounts 20000 Bad Debt Expense 8000...
The unadjusted trial balance at year end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts Net Sales $ 444,000 Debit 1,340 Debit 2,190,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
Blazer Company has outstanding Accounts Receivables of $1,000,000 on December 31 based on Credit Sales of $3,000,000 for the year. Rich Carvajal, Chief Accountant at Blazer, estimates that 5% of their receivables will be uncollectible. He also determines that the Allowance for Doubtful Accounts has a $7,000 credit balance on December 31 prior to any adjustments. On March 1, Blazer determines that a $5,000 account owed by GTech Corp will be uncollectible. If Blazer uses the Direct Write Off Method...
Please help me to fill out this. DEMONSTRATION PROBLEM-Estimating Uncoectible Accounts Based on Aging of Receivables Bad Debt Expense Account Receivable When accountants estimate uncollectible accounts based on receivables, they determine what the balance of the allowance for doubtful accounts should be. Assume that an accountant determines that $2,000 of the current accounts receivable (aging receivables) will probably not be collected Also assume that the Allowance for Doubtful Accounts currently shows a $200 credit balance Why the Allowance for Doubtful...
The balance of Allowance for Doubtful Accounts prior to making the adjusting entry to record estimated uncollectible accounts a. is relevant to both bases of adjusting for uncollectible accounts. b. will never show a debit balance at this stage in the accounting cycle. c. is relevant when using the percentage of receivables basis. d. is relevant when using the direct write-off basis. 2. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a a. debit...
Receivables are often classified as accounts, notes, long-lived 33 a. b. accounts, notes, other accounts, otes, inventory none of the above. c. d. All of the following are "other receivables" escept petty cash interest receivable. income taxes refundable. advances to employees. 34 a. b. c. d. The method of accounting for bad debt expense, which conforms to GAAP is: 35 direct write-off method. a. allowance method. both a and b none of the above. d. An aging schedule of accounts...
12. Inte al control d protects from e guarantee the company will campo d ensure that business Information is one the bar 13. The amount of deposits in Hount of deposits in transit is included a. deduction from the balance the company's b. deduction from the balance perbank e n e addition to the balance per bank statement d. addition to the balance per company books 14. The bank reconciliation a. should be prepared by an employee who records castrech...
The receivable that is usually evidenced by a formal, written instrument of credit is a(n) a.trade receivable b.note receivable c.accounts receivable d.income tax receivable When does an account become uncollectible? a.there is no general rule for when an account becomes uncollectible b.at the end of the fiscal year c.when a discount is available on notes receivable d.when accounts receivable is converted into notes receivable Two methods of accounting for uncollectible accounts are the a.allowance method and the accrual method b.direct...