View transaction list1 Bad debts are estimated to be 4% of credit sales.2 Bad debts are estimated to be 3% of total sales.3An aging analysis estimates that 7% of year-endaccounts receivable are uncollectible.EXEX: At December 31, a company reports the following results for its calendar year.Credit salesCash sales$ 3,851,000$ 1,642,320Also, its unadjusted trial balance includes the following items.Accounts receivableAllowance for doubtful accountsRequired:$1,166,853debit$ 28,260 credita. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated tobe 4% of credit sales.b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated tobe 3% of total sales.c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated tobe 7% of year-end accounts receivable.

Bad Debt Expense is a ledger used to record provision made for uncollectible accounts. For those…

At December 31, a company reports the following results for its calendar year. Credit sales Cash sales $ 3,851,000 $ 1,642,320 Also, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 1,166,853 debit $ 28,260 credit Required: a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 4% of credit sales. b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 3% of total sales. c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 7% of year-end accounts receivable.

At December 31, a company reports the following results for its calendar year. Credit sales Cash sales $ 3,851,000 $ 1,642,320 Also, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 1,166,853 debit $ 28,260 credit Required: a. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 4% of credit sales. b. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 3% of total sales. c. Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 7% of year-end accounts receivable.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 6MC: Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of...

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Doer Company reports year-end credit sales in the amount of $390,000 and accounts receivable of $85,500. Doer uses the income statement method to report bad debt estimation. The estimation percentage is 3.5%. What is the estimated balance uncollectible using the income statement method? A. $13,650 B. $2,992.50 C. $136,500 D. $29,925
McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of 1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. Prepare the journal entry to record bad debt expense for McKinney at the end of 2019.
Chapter 5: Receivables and Sales A company reports the following amounts at 12/31/YR2 (before any year-end adjustment). Management estimates 8% of the receivables will not be collectible. The company uses the percent-of-receivables method to determine bad debt expense. Credit sales for the year 1,000,000 Accounts receiyable (A/R) 90,000 Allowance for uncollectible accounts ("AUA") 1,800 Credit Bal. Estimated percent uncollectible. 6.0% Create T accounts for A/R, AUA and Bad debt expense to help with the following questions. Accounts Receivable AUA Bad Debt Expense How much of the Accounts Receivable does management not expect to collect? What amount will the company record as bad debt expense for the YR2? What amount will be shown on the 12/31 balance sheet for Net Accounts Receivable? 1 2 3 On January 5, YR3, the company writes off an A/R they determined is uncollectible. After the write off, what is the balance in AUA? The 4 amount of the write-off is: 200 After the write off, what…
Related data of V Company: Accounts receivable, beginning P395,200 Allowance for bad debts, beginning 8,500 Sales for the year 5,000,000 Collection 4,680,000 Percentage of Bad debts is 2% of Accounts receivable How much is the Net realizable value?
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16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
16. Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net credit sales, P2,000,000 Accounts receivable, December 31, P310,000 Allowance for doubtful accounts (before any year-end adjustments), P17,000 Percentage of credit sales 2% The aging of receivables is as follows: (days outstanding, receivable balances, and % uncollectible, respectively) 0-60 days, P90,000, 2% 61-120 days, P100,000, 3% Over 120 days, P120,000, 15% Q Company uses the percentage of credit sales in determining the bad debts monthly financial statements and aging of receivables for its annual financial statements. Accounts written off during the year amounted to P38,000 and accounts recovered amounted to P9,000. As of December 31, Q determined that P20,000 accounts receivable from a certain customer included in the “61-120 days outstanding group” is 94% collectible and P10,000 account included in the “over 120 days outstanding” group is worthless and needs to be written…
Related data of J Company: Accounts Receivable, Beginning 395,200 Allowance for Bad debts, beg. 8,500 Sales for the year. 5,000,000 Collection. 4,680,000 Percentage of Bad debts is 2% of Accounts Receivable How much is the net realizable value?
1 Calculate, record, post, and analyze the adjustment to recognize bad debt expense under the following information provided: Account DR CR Accounts receivable Allowance for doubtful accounts 365,000 15,000 Net credit sales 827,000 Amount % Estimated Total Estimated Number of Days Outstanding Receivable Uncollectible Uncollectible 0-30 175,000 1.00% 31-60 80,000 2.00% 61-90 50,000 42,000 18,000 5.00% Page 1 91-120 20.00% Over 120 40.00% TOTALS 365,000 Page 2 General Ledger Accounts Receivable A Allowance for Doubtful XA Bad Debt Expense E Debit Credit Debit Credit Debit Credit Transaction Analysis ASSETS LIABILITIES EQUITY REVENUES EXPENSES NET INCOME + General Journal DR CR 2 What is the net realizable value of Accounts receivable?
6) Brotherhood Company had the following information relating to its accounts receivable: Accounts receivable, 12/31/21 1,300,000 Credit sales for 2022 5,400,000 4,750,000 125,000 Collections from customers for 2022, excluding recovery Accounts written off 9/30/22 Collection of accounts written off in prior year (customer credit was not reestablished) Estimated uncollectible receivable per aging of receivable at 12/31/22 25,000 165,000 On December 31, 2022, the amortized cost of accounts receivable is a. 1,825,000 b. 1,800,000 c. 1,635,000 d. 1,660,000
Net realizable value $ 3. Marigold Co. provides for doubtful accounts based on 3% of gross accounts receivable. The following data are available for 2025. Credit sales during 2025 Bad debt expense Allowance for doubtful accounts 1/1/25 Collection of accounts written off in prior years (customer credit was reestablished) Customer accounts written off as uncollectible during 2025 What is the balance in Allowance for Doubtful Accounts at December 31, 2025? Allowance for doubtful accounts 12/31/25 $ Accounts receivable, net of allowance for doubtful accounts Customer accounts written off as uncollectible during 2025 Bad debt expense for 2025 $872,800 26,370 89.470 4. At the end of its first year of operations, December 31, 2025, Swifty Inc. reported the following information. O Search LOC 18 $3,343,800 DELL 57,040 16,760 7,930 30,830 19