ZuoTi.Pro
Question

PART B [3 marks) Shania Twain Ltd had Accounts Receivable of $215,000 and an Allowance for Doubtful Debts of $520 (Credit) at

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Closing balance of Accounts Receivable = $215000

Allowance for doubtful debts = $520 (Credit)

Bad debts written off = $700

Adjusted accounts receivable =

Closing balance of accounts receivable - Accounts written off

= $215000 - $700 = $214300

Balance of allowance for doubtful accounts =

$700 - $520 = $180 Debit

Provision for doubtful debts = $214300 x 3% = $6429

Credit

Total amount to be credited in allowance for doubtful accounts =

$180 + $6429 = $6609

Journal entry :

Date

Accounts Title and Explanation

Debit

Credit

Bad debts Expense

$6609

Allowance for doubtful accounts

$6609
0 0
Add a comment
Know the answer?
Add Answer to:
PART B [3 marks) Shania Twain Ltd had Accounts Receivable of $215,000 and an Allowance for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • PART C [2 marks] Shania Twain Ltd had purchased equipment on 1 January 2020 at a...

    PART C [2 marks] Shania Twain Ltd had purchased equipment on 1 January 2020 at a cost of $200,000. The equipment had a useful life of 6 years and an estimated residual of $35,000. The company decided to use the reducing balance method of depreciation at 30% per annum. Calculate the depreciation and prepare the necessary journal entry for the year ended 31 December 2021

  • At year-end Shifty Ltd had a balance of Accounts Receivable of $90 000 and an Allowance...

    At year-end Shifty Ltd had a balance of Accounts Receivable of $90 000 and an Allowance for Doubtful Debts of $4000. It was decided to write off the debt of Wriggler totalling $2500 as irrecoverable. It was further decided that the Allowance for Doubtful Debts should stand at 5% of Accounts Receivable. What was the journal entry needed to bring the Allowance for Doubtful Debts to the required level after writing off the debt of Wriggler? TE Select one: O...

  • A)Accounts receivable accounts B) Allowance for doubtful debts account. C) Statement of profit or loss (extract)....

    A)Accounts receivable accounts B) Allowance for doubtful debts account. C) Statement of profit or loss (extract). D) Statement of financial position(extract). Accounting for Accounts Receivable 15 & Suria commenced business on 1 January 20X0. At year end, 31 December 20X0, the accounts receivable balance was RM10,000. In addition, she found that it was necessary to create an allowance for doubtful debts of RM960. ro During the year ended 31 December 20X1, an amount totalling RM840 proved to be bad and...

  • AP6-8B (Accounts receivable and uncollectible accounts—aging of receivables method) Johnson Ltd. reported the following information on...

    AP6-8B (Accounts receivable and uncollectible accounts—aging of receivables method) Johnson Ltd. reported the following information on financial statements for the year ended December 31, 2019: $2,978,500 Accounts receivable 95,312 Allowance for doubtful accounts 152,305 Bad debts expense During 2020, the company had the following transactions related to receivables: a. Sales were $26,358,000, of which $21,086,000 were on account. b. Collections of accounts receivable were $19.923,000. c. Writeoffs of accounts receivable were $102,200. d. Recoveries of accounts previously written off as...

  • I understand part A, but I do not understand B and C. I only need B and C. If possible, can you give a detail solution. Thank you. Week 9: Accounts Receivable Lecture Demonstration Bad Debts Exercise...

    I understand part A, but I do not understand B and C. I only need B and C. If possible, can you give a detail solution. Thank you. Week 9: Accounts Receivable Lecture Demonstration Bad Debts Exercise Doubtful Debts-Net Credit Sales and Ageing Methods Recording transactions for bad and doubtful debts Transactions for Bradford Ltd's Accounts Receivable for the year ending 30 June 2018 are listed below. On 1 July of the previous year, the opening balance of the Allowance...

  • Wildhorse Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following...

    Wildhorse Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the below information. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable 166,400 71,700 37,800 32,600 15,700 $8,600 % uncollectible 1% 4% 5% 8% 20% Estimated Bad debts (b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts...

  • The following information is related to December 31, 2021 balances. • Accounts receivable $1400000 • Allowance...

    The following information is related to December 31, 2021 balances. • Accounts receivable $1400000 • Allowance for doubtful accounts (credit) (100000) • Cash realizable value 1000000 During 2022 sales on account were $350000 and collections on account were $200000. The company wrote off $20000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $140000. Bad debt expense for 2022 is: A. $60000. B.$140000. C.$20000. D.$40000.

  • At December 31, 2019, Gerald Company had accounts receivable of $1,500,000 and an allowance for doubtful...

    At December 31, 2019, Gerald Company had accounts receivable of $1,500,000 and an allowance for doubtful accounts of $8,250. On January 1, 2020, Gerald Company wrote off a $1,500 bad debt against the allowance for doubtful accounts. There were no other accounts receivable transactions on

  • 2. Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31,...

    2. Broadway Limited had an $800 credit balance in Allowance for Doubtful Accounts at December 31, 2018, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following (10 marks):                                                                                                           Estimated Percentage                                                                                                                 Uncollectible        Current Accounts........................................... $150,000                       1%        1-30 days past due.............................................. 15,000                       3%        31-60 days past due.............................................. 8,000                       6%        61-90 days past due.............................................. 5,000                     12%        Over 90 days past due....................................       6,000                     30%        Total Accounts...

  • EXERCISE 2 Brown Company had a $1,000 credit balance in Allowance for Doubtful Accounts at December...

    EXERCISE 2 Brown Company had a $1,000 credit balance in Allowance for Doubtful Accounts at December 31, 2020, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:               Estimated Percentage                              Uncollectible                   Current Accounts                                                         $100,000                               1%                                     1–30 days past due                                                         12,000                               3%                                          31–60 days past due                                                        10,000                               6%                                         61–90 days past due                                                         6,000                             25%                                      Over 90 days past due                                                      8,000                             50%                                                                                              Total Accounts Receivable    $136,000                          Instructions:                                                                             (a)   Prepare the adjusting entry on December 31, 2020, to recognize bad debts expense. (b)   Assume the same facts as above except...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT