Let the credit sales be $100,000
It is given that 5% of credit sales is uncollectible.
Therefore the entry would be
General journal | Debit | Credit |
---|---|---|
Bad debts expense | 5,000 | |
Allowance for Doubtful Accounts | 5,000 |
(100,000*5%)
Assume that you have a company. And the management estimates that 5% of sales will be...
Assume that you have a company. And the management estimates that 1% of sales will be uncollectible. Give any amount of sales and prepare the journal entry using the percent of sales method.
Assume that you have a company. And the management estimates that 2.5% of sales will be uncollectible. Provide an amount of sales and prepare the journal entry using the percent of sales method?
please use a new word. thank you Assume that you have a company. And the management estimates that 2.5% of sales will be uncollectible. Provide an amount of sales and prepare the journal entry using the percent of sales method (I Mark).
Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that 2 percent of credit sales in uncollectible accounts when it uses the percentage of credit sales method and it estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $6,900 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $400. Prepare the...
Acompany rports the following account balances on December 31, before year-end adjusting journal entries have been prepared: Accounts Receivable Allowance for Doubtful Accounts Sales $3,000,000 (Dr.) 18,000 (Dr.) $40,000,000 (Cr.) Answer the following independent questions The company uses the Percent of Sales method to estimate bad debts. The company estimates that .5% (.005) of sales will be uncollectible. Prepare the entry to record the estimate of bad debts a. b. The company uses an analysis of accounts receivable to estimate...
Exercise 9-6 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.30 % of its annual credit sales of $969,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $485 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions....
A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 8% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 500,000 Accounts receivable (A/R) 35,000 Allowance for uncollectible accounts (“AUA”) 300 (credit) 1. How much of the Accounts Receivable does management not expect to collect? 2. What amount will the company record as bad debt expense for the year? 3. What amount...
A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 7% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 550,000 Accounts receivable (A/R) 45,000 Allowance for uncollectible accounts ("AUA") 450(credit) 1. How much of the Accounts Receivable does management not expect to collect? 2. What amount will the company record as bad debt expense for the year? 3. What amount will...
Exercise 9-5 Percent of sales method; write-off LO P3 At year-end (December 31), Chan Company estimates its bad debts as 0.40% of its annual credit sales of $940,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $470 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare the journal entries for these transactions. Note:...
CH. 7 Exercise The following information is available for SBS Co' sales on account and accounts receivable: Accounts receivable balance, January 1, 2016 $ 100,000 Allowance for doubtful accounts, January 1, 2016 $ (5.900) Sales on account, 2016 $ 800,000 Accounts receivable balance, Dec 31, 2016 $ 90,000 Write-off, 2016 $o Determine the bad debts expense for 2016. (a) using the percentage of credit sales method, if the company estimates that 10 percent of the credit sales will be uncollectible...