Question

Use the following information to answer the next 2 questions At December 31, 2017 before any year-end adjustments, the Accoun

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Uncollectible accounts = 1% of sales

Balance in allowance for bad debt on December 31, 2017 = 600,000 x 1%

= $6,000

Hence, correct option is a.

Kindly comment if you need further assistance. Thanks‼!

Add a comment
Know the answer?
Add Answer to:
Use the following information to answer the next 2 questions At December 31, 2017 before any...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • 14. On December 1. On December 31, 2017. James Company has an accounts receivable balance of...

    14. On December 1. On December 31, 2017. James Company has an accounts receivable balance of $324,000 Beton any year-end adjustments. The Allowance for Doubtful Accounts has a $1,100 credit balance The company prepares the following aging schedule for accounts receivables Total Balance $324,000 Percent uncollectible 1-30 days $157,000 1% 31-60 days $89,000 2% 61-90 days $51,000 4% over 90 days $27,000 21% What is the Uncollectible-Account Expense at December 31, 2017? A) $1,570 B) $9,960 C) $11,060 D) $12,160...

  • NAME B) At December 31, 2018 before any year-end adiustments, the Accounts Receivable balance of Houston...

    NAME B) At December 31, 2018 before any year-end adiustments, the Accounts Receivable balance of Houston Inc. is $330,000. The Allowance for Uncollectible Accounts has a $15,400 credit balance. Houston prepares the following aging schedule for Accounts Receivable: Days Outstanding 1-30days 31-60days 61-90days Over 90 days Estimated Uncollectible 0.6% 3.0 % 5.0% 40.0% Balance $130,000 $100,000 $ 70,000 $30,000 REQUIRED: Make the entry required by the aging schedule and prepare a T-account for the allowance. Also, show how Houston will...

  • Hovak Company has credit sales of $4,500,000 for year 2017. At December 31, 2017, the company's...

    Hovak Company has credit sales of $4,500,000 for year 2017. At December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted debit balance of $3,400. Hovak prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. Expected Percent Uncollectible December Age of 31, 2017, Accounts Receivable Accounts Receivable $396,400 Not yet...

  • Jarden Company has credit sales of $2,300,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $18,370

    Jarden Company has credit sales of $2,300,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $18,370. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 460,000 Not...

  • [The following information applies to the questions displayed below.] At December 31, 2018, Hawke Company reports...

    [The following information applies to the questions displayed below.] At December 31, 2018, Hawke Company reports the following results for its calendar year. Required information (The following information applies to the questions displayed below.] At December 31, 2018, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,478,710 3,022,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $915,666 debit 20,920 debit Required: 1. Prepare the adjusting entry...

  • Sunland, Inc. had net sales in 2017 of $1,476,200.At December 31, 2017, before adjusting entries, the...

    Sunland, Inc. had net sales in 2017 of $1,476,200.At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $257,500 debit, and Allowance for Doubtful Accounts $1,877 debit. Assume that 11% of accounts receivable will prove to be uncollectible. Prepare the entry to record bad debt expense. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do...

  • Jarden Company has credit sales of $2,300,000 for year 2017. On December 31, 2017, the company’s...

    Jarden Company has credit sales of $2,300,000 for year 2017. On December 31, 2017, the company’s Allowance for Doubtful Accounts has an unadjusted credit balance of $18,370. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 460,000 Not...

  • At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Solar Power Manufacturing,...

    At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Solar Power Manufacturing, Inc., is $330,000. The Allowance for Uncollectible Accounts has a[n) $18,000 credit balance. Solar Power Manufacturing prepares the following aging schedule for Accounts Receivable: Click the icon to view the aging schedule.) Read the requirements Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? First, calculate a revised allowance for uncollectible...

  • The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,900,000...

    The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,900,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $21,359. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable $...

  • Required information [The following information applies to the questions displayed below.] Jarden Company has credit sales...

    Required information [The following information applies to the questions displayed below.] Jarden Company has credit sales of $2,600,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,066. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts...

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