Answer 1 $15500
as
Sales return for current year to be shown = Current year + estimated sales return
= $7200 + $8300
= $15500
Answer 2 Total credit sales for the year
as
Percentage of sales method for accounting for uncollectible focuses on total credit sales during the year and uncollectibles are estimated as a percentage of credit sales for the year
Answer 3 Debit bad debt expense $4000 Credit Allowances for uncollectible accounts $4000
as
following journal entry is passed for this
Bad debt expense = Estimated amount of bad debts for future - credit balance in allowances for uncollectible accounts
= $6500- $2500
= $4000
Date | General journal | Debit | Credit |
31-Dec | Bad debts expense | $ 4,000 | |
Allowance for doubtful accounts | . | $ 4,000 | |
(Provision made for Allowances for Bad debts) |
Answer 4 The number of times a year that the average accounts receivables were collected
as
Receivable turnover ratio is the indicator of that how many times we are able to collect the average debtor in a year, or in other words how frequently debtors are collected
At the end of the current year, a company has the following amounts: During the Estimated current for next...
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is at managing sales and inventory. The relationship between sales and cost of goods sold. number of times during a year that the average accounts receivables were collected. 0 CA The relationship between cash sales and credit sales < Prev 25 of 30 Next > newcom ecucduUILCUNDU Help Save & Exit Saved uiz At the end of the year, Mark Inc. estimates future bad debts...
The unadjusted trial balance at year end for a company that uses the percent of receivables method to determine its bad debts expense reports the following selected amounts: Accounts receivable Allowance for Doubtful Accounts Net Sales $ 444,000 Debit 1,340 Debit 2,190,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.0% of ending account receivable to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable $ 426,000 Debit Allowance for Doubtful Accounts 1,440 Debit Net Sales 2,290,000 Credit All sales are made on credit. Based on past experience, the company estimates 2.0% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable Allowance for Doubtful Accounts Net Sales $ 435,000 Debit 1,250 Debit 2,100,000 Credit All sales are made on credit. Based on past experience, the company estimates 1% of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. 440,000 Debit Accounts receivable 1,300 Debit Allowance for Doubtful Accounts Net Sales 2,150,000 Credit All sales are made on credit. Based on past experience, the company estimates 3.0 % of credit sales to be uncollectible. What adjusting entry should the company make at the end of the current year to record...
MC Qu. 140 The following selected amounts... The following selected amounts are reported on the year-end unadjusted trial balance report for a company that uses the percent of sales method to determine its bad debts expense. Accounts receivable $ 435,000 Debit Allowance for Doubtful Accounts 1,250 Debit Net Sales 2,100,000 Credit All sales are made on credit. Based on past experience, the company estimates 1% of credit sales to be uncollectible. What adjusting entry should the company make at the...
A company has the following account balances at the end of the year: • Credit Sales = $400,000 • Accounts receivable = $80,000 • Allowance for Uncollectible Accounts = $400 debit The company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year's income statement? Multiple Choice $400. O O $2,800. O $3,200. O $3,600.
A company has the following account balances at the end of the year: 4 • Credit Sales - $400,000 • Accounts receivable - $80,000 • Allowance for Uncollectible Accounts = $400 debit eBook The company estimates future uncollectible accounts to be 4% of accounts receivable. At what amount would Bad Debt Expense be reported in the current year's income statement? Multiple Choice o $400 $2,800 O O $3,200. O O $3,600.
At the end of the year, the company estimates part of accounts receivables that customers won't pay in the future. What is the journal entry for this kind of estimation? Select one: a. Debit-Allowance for Uncollectible Receivables, Credit- Account Receivables X b. Debit - Allowance for Uncollectible Receivables, Credit - Bad debt expense. c. Debit-Bad Debt Expense, Credit- Allowance for Uncollectible Receivables. d. Debit- Account Receivables, Credit - Allowance for Uncollectible Receivables
Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of $735,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,310,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $28,600. a. Determine the amount of the adjusting entry for uncollectible accounts. $ b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable...