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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
Homework Answers
| 1 | ||||
| Debit | Credit | |||
| a | Bad Debts expense | 5800 | =290000*2% | |
| Allowance for Doubtful accounts | 5800 | |||
| b | Bad Debts expense | 6350 | =6800-450 | |
| Allowance for Doubtful accounts | 6350 | |||
| 2 | ||||
| Either the percentage of credit sales or aging of accounts receivables | ||||
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Which of these methods is required by GAAP? Aging of accounts receivables Percentage of credit sales Either the per...
Assume that Simple Co had credit sales of $282,000 and cost of goods sold of $166,000...
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....
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Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $79,500, and it estimates that 2% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,352 credit balance before the adjustment. (b) a $398 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense...
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...
Blackhorse Productions, Inc. used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $20,150. The account had an unadjusted credit balance of $12,000 at that time. Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) a. The appropriate bad debt adjustment was recorded. D. Later, an account receivable for $1.200 was determined to be uncollectible...
E8-8 Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and Aging of Accounts Receivable Methods [LO 8-2) Innovative Tech Inc. (TI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $100,000 and estimated that of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging...
Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Alllowance for Doubtful Accounts should be $19,700. The account had an unadjusted credit balance of $12,000 at that time Required: Prepare journal entries for each of the following. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a. The appropriate bad debt adjustment was recorded b. Later, an account receivable for $1,200 was determined to be uncollectible...
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $126,500, and it estimates that 6% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,151 credit balance before the adjustment. (b) a $633 debit balance before the adjustment. View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense...
Mazie Supply Co. uses the percent of accounts receivable method On December 31, it has outstanding accounts receivable of $71,500, and it estimates that 6% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has (a) a $1,216 credit balance before the adjustment (b) a $358 debit balance before the adjustment View transaction list Journal entry worksheet Prepare the year-end adjusting entry to record bad debts expense...
Required information Exercise 5-20A Compare the percentage-of-receivables method and the percentage-of-credit-sales method (LO5-9) (The following information applies to the questions displayed below.) Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 Accounts Receivable, December 31, 2021 Allowance for Uncollectible Accounts, December 31, 2021 $ 250,000 45,000 1,000 (debit) Exercise 5-20A Part 2 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. Suzuki estimates 2% of credit ales will not...
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