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 journal entry to record the end-of-period adjustment for bad debts under the (a) percentage of credit sales method and (b) aging of accounts receivable method. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.
Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that...
Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000 for the period. It estimates that 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 $3,900 when it uses the aging method. Before the end of period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $410. 1....
Check my work Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. It estimates that 1 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 $3,000 when it uses the aging method. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of...
Which of these methods is required by GAAP? Aging of accounts receivables Percentage of credit sales Either the percentage of credit sales or aging of accounts receivables Assume that Simple Co. had credit sales of $290,000 and cost of goods sold of $170,000 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...
Assume that Simple Co. had credit sales of $259,000 and cost of goods sold of $159,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,900. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $340. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $150. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense
Assume that Simple Co. had credit sales of $250,000 and cost of goods sold of $150,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,000. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $250. What amount of Bad Debt Expense would the company record as an end-of-period adjustment? Bad Debt Expense
Assume that Simple Co. had credit sales of $253,000 and cost of goods sold of $153,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $3,300. Before the end of period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $280. What amount of Bad Debt Expense would the company record as an end of period adjustment? Bad Debt Expense
Assume Simple Co. had credit sales of $240,000 and cost of goods sold of $140,000 for the period. Simple uses the percentage of credit sales method and estimates that 1 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $150. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Assume Simple Co. had credit sales of $255,000 and cost of goods sold of $155,000 for the period. Simple uses the percentage of credit sales method and estimates that 2 percent of credit sales would result in uncollectible accounts. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $300. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?
Assume that Simple Co. had credit sales of $246,000 and cost of goods sold of $146,000 for the period. Simple uses the aging method and estimates that the appropriate ending balance in the Allowance for Doubtful Accounts is $2,600. Before the end-of-period adjustment is made, the Allowance for Doubtful Accounts has a credit balance of $210. What amount of Bad Debt Expense would the company record as an end-of-period adjustment?