Homework Answers
Bad Debt Expense = $500,000 x 1% = $5000
| Allowance for Doubtful accounts | |||
| Beginning Balance | $ - | ||
| $ 5,000 | Bad Debt Expense | ||
| Ending Balance | $ 5,000 | ||
Estimated uncollectible accounts = $5000
| Account Titles | Debit | Credit |
| Bad Debt Expense | $ 5,000 | |
| Allowance for Doubtful accounts | $ 5,000 |
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PRACTICAL APPLIATION #5 B. Assume that Rankin Company's estimates uncollectible accounts at 1% of total net sales. T...
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2
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2
A company had net sales of $520,000, total sales of $670,000, and an average accounts receivable of $84,000. Its accounts receivable turnover equals: Multiple Choice 0.16 0.13 7.98 O.78 6.19 A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the current year, management estimated that $31,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a credit balance...
Show in T-Accounts and Journal. These entries related to
uncollectible accounts
Entries related to uncollectible accounts Chart of Accounts T Accounts Journal Final Questions Instructions The following transactions were completed by Daws Company during the current fiscal year ended December 31: Jan. 29 Received 35% of the $9,000 balance owed by Kovar Co., a bankrupt business, and wrote of the remainder as uncollectible Apr. 18 Reinstated the account of Spencer Clark, which had been written off in the preceding year...
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