Answer
Accounts title |
Debit |
Credit |
Bad Debt Expense [or Uncollectible account expense] |
$58,100 |
|
Allowance for Doubtful Accounts |
$58,100 |
--Working
Amount |
% uncollectible |
Uncollectible amount |
|
Accounts receivables |
$605,000 |
2% |
$12,100 |
Adjusted balance required of Allowance for Doubtful Account (A) |
$12,100 |
||
Unadjusted balance in the Allowance account (B) Credit (Debit) |
($46,000) |
||
Bad Debt Expese: (A - B) |
$58,100 |
Ending (adjusted) balance = $ 12,100 Credit
Cullumber Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending bala...
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Metlock, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $361,400 at the end of the year, and the allowance for doubtful accounts has a credit balance of $3,039. (a) Prepare the adjusting journal entry to record bad debt expense for the year. (b) If the allowance for doubtful accounts had a debit balance of $979 instead of a credit balance of $3,039, prepare the adjusting...
Ivanhoe Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $606,000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,150. *(a) Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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