Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of...
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of credit sales will be uncollectible. On January 1, Allowance for Doubtful Accounts had a credit balance of $3,500. During the year, Abbott wrote off accounts receivable totaling $2,600 and made credit sales of $92,000. There were no sales returns during the year. After the adjusting entry, the December 31 balance in Bad Debt Expense will be
a.$3,660
b.$1,750
c.$6,260
d.$2,760
Homework Answers
d.$2,760
($92,000 x 3%)
Under % of credit sales will be uncollectible Bad Debt Expense would3%of total net sales, whatever be balance in the Allowance for Doubtful Accounts dose not matter.
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Abbott Company uses the allowance method of accounting for
uncollectible accounts. Abbott estimates that 3% of...
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of...
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 2% of credit sales will be uncollectible. On January 1, the Allowance for Doubtful Accounts had a credit balance of $3,800. During the year, Abbott wrote-off accounts receivable totaling $2,000 and made credit sales of $94,000. After the adjusting entry, the December 31 balance in Bad Debt Expense would be Select the correct answer. $1,880 $3,680 $5,680 $3,800
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The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable. During...
The Links Company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transactions occurred: September 7 Links Company determined that the $8,000 account receivable of the Rainier Company was uncollectible, and wrote it off. October 15 Links Company determined that the $3,500 account receivable of the Olympic Company was uncollectible and wrote it off. November 9 Rainier Company paid $6,000 of the amount owed to the Links Company. Links Company does...
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...
ter 7 Problems Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,330 at the beginning of 2021 and a $22,510 credit balance at the end of 2021 (after adjusting entries). If the direct write-off method had been used to account for uncollectible accounts (bad debt expense equals actual write-offs), the income statement for 2021 would have included bad debt expense of $17.200 and revenue of $2,300 from the collection of...
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