Ans:Credit $3,275
Explanation:
Bad debt expense = Credit sales*4.5%
= $55,000*4.5% = $2,475
Allowance for Doubtful Accounts = Beg bal+Bad debt expense
=800+2475=3275 to be credited
Question 20 1.5 pts RC Mona has $55,000 in accounts receivable and a debit balance of...
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...
19) 20) Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $390,000 and credit sales are $1,300,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment? Bad Debt Expense 17,000 Allowance for Doubtful Accounts 17,000 Bad Debt Expense 19,500 Allowance for Doubtful Accounts 19,500 Bad Debt...
Accounts Receivable has a debit balance of $40,000 and Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is estimated at 3% of credit sales. If credit sales are $300,000, record the adjusting entry for the estimated uncollectible accounts in the journal provided.
Credit Debit $195,800 Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $ 1,480 903,200 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,290 of accounts receivable will be uncollectible. (b) Repeat part (a), assuming that instead of a credit balance there is a $1,480 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2023, a $2,270 account receivable is written off as uncollectible....
At each calendar year-end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, it has outstanding accounts receivable of $98,500, and it estimates that 5% will be uncollectible. Prepare the adjusting entry to record bad debts expense for the year ended December 31 under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,675 credit balance before the adjustment. (b) a $493 debit balance before the adjustment. Date General Journal...
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...
Problem 2-Uncollectible Accounts Receivable (10 points total) The Accounts Receivable balance for Crown Corporation is $960,000 as of December 31, 2019. Before calculating and recording 2019 Bad Debt Expense, the Allowance for Doubtful Accounts has a credit balance of $32,000. Credit sales for 2019 are $3,600,000, and over the past several years, 2% of net credit sales have proven uncollectible. An aging of Crown Corporation's Accounts Receivable results in a S110,000 estimate for the Allowance for Doubtful Accounts as of...
Aging Method On January 1, 2019, Smith, Inc., has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $376,000 Allowance for Doubtful Accounts (a credit balance) 4,200 During 2019, Smith had $2,860,000 of credit sales, collected $2,905,000 of accounts receivable, and wrote off $3,850 of accounts receivable as uncollectible. At year end, Smith performs an aging of its accounts receivable balance and estimates that $3,800 will be uncollectible. Cornerstone Exercise 5-28 (Algorithmic) Aging Method On January...
6. The following accounts were abstracted from Starr Co's unadjusted trial balance at December 31, 2016: Credit Debit $750,000 Accounts receivable Allowance for uncollectible accounts Net credit sales Starr estimates that 4.5% of the gross accounts receivable will become uncollectible. 8,000 $3,000,000 at December 31, 2016, the allowance for uncollectible accounts should After adjustment have a credit balance of A) S120,000. B) S112,000. C) $33,750. D) $30,000. 7. Wellington Corp, has outstanding accounts receivable totaling $1.27 million as of December...
Write-Off of Uncollectible Accounts The Rock has credit sales of $480,000 during 2019 and estimates at the end of 2019 that 2% of these credit sales will eventually default. Also, during 2019 a customer defaults on a $1,900 balance related to goods purchased in 2019. Required: 1. Prepare the journal entry to record the defaulted balance. Allowance for Doubtful Accounts Accounts Receivable Record write-off of defaulted account 2. Prepare the adjusting entry to record the bad debt expense for 2019....