Company X recorded the following adjusting entries to their accounts at the end of the year: 1. Decreased their deferred revenue from 208 to 93. 2. Decreased their prepaid insurance from 46 to 34. 3. Recorded $20 of accrued interest that will be paid next month. 4. Recorded $14 of depreciation expense. What is the total effect on income from these adjustments? Enter your answer as a positive if income increases and a negative if income decreases.

Company X recorded the following adjusting entries to their accounts at the end of the year: 1. Decreased their deferred revenue from 208 to 93. 2. Decreased their prepaid insurance from 46 to 34. 3. Recorded $20 of accrued interest that will be paid next month. 4. Recorded $14 of depreciation expense. What is the total effect on income from these adjustments? Enter your answer as a positive if income increases and a negative if income decreases.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Similar questions

A business like NetSolutions estimates customer refunds and allowances for each year’s sales that might be owed to customers the following year. The year-end balance is recorded on the ___________ as a ______________. Group of answer choices Statement of Owner's Equity; decrease in owner's equity Income Statement; current liability (Customer Refunds Payable) Balance Sheet; current liability (Customer Refunds Payable) Statement of Cash Flows; Operating Activity
The estimated loss from uncollectible accounts can be based on the net credit sales for the year or the ____________________ balance at the end of the year.
1. What is the adjusting entry for the doubtful accounts expense for the current year? 2. What is the net realizable value of accounts receivable at year-end? Please include solutions with the answers. Thank you!
At the beginning of 2020, Tanham Company discovered the following errors made in the preceding 2 years: Reported net income was 27,000 in 2018 and 35,000 in 2019. The allowance for doubtful accounts had a zero balance at the beginning of 2018. No accounts were written off during 2018 or 2019. Ignore income taxes. Required: 1. What is the correct net income for 2018 and 2019? 2. Prepare the adjusting journal entry in 2020 to correct the errors.
Record the adjusting entry for Bad Debt Expense under the following independent scenarios (assume net sales of $300,000 for the year and A/R balance of $50,000). Please also specify the balance in the allowance account after adjustment: The allowance account before adjustment has a credit balance of $3,000. Bad debt expense is estimated at 2% of net sales. The allowance account before adjustment has a credit balance of $3,000. An aging analysis of A/R indicates uncollectible accounts of $7,500. The allowance account before adjustment has a debit balance of $4,000. Bad debt expense is estimated at 3% of net sales. The allowance account before adjustment has a debit balance of $4,000. An aging analysis of A/R indicates uncollectible accounts of $7,500.
At the end of the current year, Accounts Receivable has a balance of $4,375,000; Allowance for Doubtful Accounts has a debit balance of $21,300; and sales for the year total $102,480,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $205,000. 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 Allowance for Doubtful Accounts $ $ Bad Debt Expense c. Determine the net realizable value of accounts receivable.
A business has been accounting for its bad A/R using the Allowance Method. For the last 5 years, the business has used the % of net sales estimation method for estimating the adjusting entry at year-end. After 5 years, the balance of the Allowence for Doubtful Accounts has grown very large in relationship to the total balance in A/R. What are 2 possible explanations as to how this could have occurred?
At the end of the current year, Accounts Receivable has a balance of $4,770,000, Allowance for Doubtful Accounts has a debit balance of $17,230, and sales for the year total $63,800,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $380,000. a. Determine the amount of the adjusting entry for uncollectible accounts.$fill in the blank 1 b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $fill in the blank 2 Allowance for Doubtful Accounts $fill in the blank 3 Bad Debt Expense $fill in the blank 4 c. Determine the net realizable value of accounts receivable.$fill in the blank 5
A business has been accounting for its bad A/R using the Allowance Method. For the last 5 years, the business has used the % of net sales estimation method for estimating the adjusting entry at year-end. After the 5 years, the balance of the Allowance for Doubtful Accounts has grown very large in relationship to the total balance in A/R. Provide 2 distinct, possible explanations as to how this could have occurred?
Williams Company’s Accounts Receivable Account has a balance of $900,000, and the Allowance for Doubtful Accounts has a negative balance of $2,000 at the end of the year before adjustment. An analysis of their customers' accounts estimates that 2% of year end account receivable will be uncollectible. The adjusting entry for doubtful accounts will include: Select one: a. An increase to Allowance for Doubtful Accounts, $16,000 b. An increase to Bad Debt Expense $20,000 c. An increase to Bad Debt Expense $16,000 d. An increase to Allowance for Doubtful Accounts, $18,000
Prepare the year-end adjusting entry for bad debts according to each of the following scenarios: a. Bad debt expense is estimated to be 5% of credit sales for the year. b. Bad debt expense is estimated by adjusting the allowance for uncollectible accounts to the balance that reduces the carrying value of accounts receivable to the amount of cash expected to be collected. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in the accounts receivable. c. For scenarios a and b above, what would be the net amount of accounts receivable reported in the 2019 balance sheet?
At the end of the current year, Accounts Receivable has a balance of $635,000; Allowance for Doubtful Accounts has a debit balance of $5,500; and sales for the year total $2,860,000. Using the aging method, the balance of Allowance for Doubtful Accounts is estimated as $22,500. a. Determine the amount of the adjusting entry for uncollectible accounts. $? Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable $ Allowance for Doubtful Accounts $ Bad Debt Expense c. Determine the net realizable value of accounts receivable. $?