You are preparing financial statements and need to make the adjustment to bad debts. You have...
You are preparing financial statements and need to make the adjustment to bad debts. You have sales of $100,000 and sales returns of $20,000. You calculate bad debts to be 1% of gross sales. What is the adjustment needed in the allowance if before the adjustment you have a debit balance in the allowance of $200?
Select one:
a. $1,000
b. $800
c. $1,200
d. 0
Homework Answers
Answer
--Adjustment required = 1% of Gross sales = 1% of $ 100000 = $ 1000
--Correct Answer = Option 'a' $ 1,000.
--Debit balance of Allowance account would not make a difference as bad debt are to be calculated on the basis of % of sales.
Add Answer to:
You are preparing financial statements and need to make the adjustment to bad debts. You have...
Cr E7-9 (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swi...
Cr E7-9 (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Accounts Receivable $90,000 Allowance for Doubtful Accounts 1,750 Sales Revenue (all on credit) $680,000 Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a...
As an alternative to the percent of revenue or sales method, which focuses on estimating the...
As an alternative to the percent of revenue or sales method, which focuses on estimating the expense of uncollectible accounts, companies may estimate the amount of the adjusting entry to record uncollectible accounts expense using the percent of receivables method. The A/R method of estimating the amount of uncollectible accounts is done by taking a percent of the outstanding receivables balance. The percentage is frequently based on a combination of factors such as historical experience, conditions of the economy, and...
E7-7 (L03) (Recording Bad Debts) Duncan Company reports the following financial information before adjustments. Dr. Cr....
E7-7 (L03) (Recording Bad Debts) Duncan Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $100,000 Allowance for Doubtful Accounts $ 2,000 Sales Revenue (all on credit) 900,000 Sales Returns and Allowances 50,000 Instructions Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.
The trial balance before adjustment of Crane Company reports the following balances: Cr. Dr. $100,000 Accounts receivab...
The trial balance before adjustment of Crane Company reports the following balances: Cr. Dr. $100,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances $1,000 500,000 20,000 Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Assume that all the information above is...
A company ages its accounts receivables to determine its end of period adjustment for bad debts. At the end of the...
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 $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? 15,7501 Bad Debts Expense Allowance for Doubtful Accounts...
Requirements 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened...
Requirements 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts. 2. Assume the December 31, 2019, balance of Accounts Receivable is $135,000. Show how net accounts receivable would be reported on the balance sheet at that date. More Info - X 2018 Dec. 31 Estimated that bad debts expense...
A company ages its accounts receivables to determine its end of period adjustment for bad debts....
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 $29,250 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $825. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple Choice Bad Debts Expense 29,250 29,250 Bad...
QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the...
QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the adjusting entry for bad debts expense. Aher analyzing the accounts in the accounts receivable subsidiary ledgerusing the aging of-receivables method, the company's management estimates that uncofect ble accounts will be $14.700. What will be the balance of the Allowance for Bed Debts reported on the balance et $23.000 $13.230 $14,700 56,400 QUESTION 7 On March 18, James Smith purchased $5,000 of furniture from Home...
On January 1, 2019, the balance in Tabor Co's Allowance for Bad Debts account was $13,364....
On January 1, 2019, the balance in Tabor Co's Allowance for Bad Debts account was $13,364. During the first 11 months of the year bad debts expense of $21,756 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9.923 Required: 2. What was the total of accounts written off during the first 11 months? (Hint Make a T-account for the Allowance for Bad Debts account.) Bad debts witool b. As the result of...
On January 1, 2019, the balance in Tabor Co. Allowance for Bad Debts account was $13,666....
On January 1, 2019, the balance in Tabor Co. Allowance for Bad Debts account was $13,666. During the first 11 months of the year, bad debts expense of $21,018 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,941 Required: 0. What was the total of accounts written off during the first 11 months? (Mint Make a T-account for the Allowance for Bad Debts account) Bad debts write-On b. As the result of...
Cr E7-9 (L03) (Computing Bad Debts and Preparing Journal Entries) The trial balance before adjustment of Taylor Swift Inc. shows the following balances. Dr. Accounts Receivable $90,000 Allowance for Doubtful Accounts 1,750 Sales Revenue (all on credit) $680,000 Instructions Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a...
E7-7 (L03) (Recording Bad Debts) Duncan Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $100,000 Allowance for Doubtful Accounts $ 2,000 Sales Revenue (all on credit) 900,000 Sales Returns and Allowances 50,000 Instructions Prepare the journal entry to record Bad Debt Expense assuming Duncan Company estimates bad debts at (a) 5% of accounts receivable and (b) 5% of accounts receivable but Allowance for Doubtful Accounts had a $1,500 debit balance.
The trial balance before adjustment of Crane Company reports the following balances: Cr. Dr. $100,000 Accounts receivable Allowance for doubtful accounts Sales (all on credit) Sales returns and allowances $1,000 500,000 20,000 Prepare the entry for estimated bad debts assuming that doubtful accounts are estimated to be 5% of gross accounts receivable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Assume that all the information above is...
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 $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? 15,7501 Bad Debts Expense Allowance for Doubtful Accounts...
Requirements 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts. 2. Assume the December 31, 2019, balance of Accounts Receivable is $135,000. Show how net accounts receivable would be reported on the balance sheet at that date. More Info - X 2018 Dec. 31 Estimated that bad debts expense...
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 $29,250 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $825. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense? Multiple Choice Bad Debts Expense 29,250 29,250 Bad...
QUESTION 9 The Allowance for Bad Debts account has a credit balance of 58,300 before the adjusting entry for bad debts expense. Aher analyzing the accounts in the accounts receivable subsidiary ledgerusing the aging of-receivables method, the company's management estimates that uncofect ble accounts will be $14.700. What will be the balance of the Allowance for Bed Debts reported on the balance et $23.000 $13.230 $14,700 56,400 QUESTION 7 On March 18, James Smith purchased $5,000 of furniture from Home...
On January 1, 2019, the balance in Tabor Co's Allowance for Bad Debts account was $13,364. During the first 11 months of the year bad debts expense of $21,756 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9.923 Required: 2. What was the total of accounts written off during the first 11 months? (Hint Make a T-account for the Allowance for Bad Debts account.) Bad debts witool b. As the result of...
On January 1, 2019, the balance in Tabor Co. Allowance for Bad Debts account was $13,666. During the first 11 months of the year, bad debts expense of $21,018 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2019, was $9,941 Required: 0. What was the total of accounts written off during the first 11 months? (Mint Make a T-account for the Allowance for Bad Debts account) Bad debts write-On b. As the result of...
Most questions answered within 3 hours.
-
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 1 hour ago -
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 1 hour ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 3 hours ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 4 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 4 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 6 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 7 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 7 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 8 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 8 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 8 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 8 hours ago