An aging of a company's accounts receivable indicates that $5,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for the period will require a O debit to Allowance for Doubtful Accounts for $4,100. credit to Allowance for Doubtful Accounts for $5,000. debit to Bad Debt Expense for $4,100. debit to Bad Debt Expense for $5,000.

An aging of a company's accounts receivable indicates that $5,000 is estimated to be uncollectible. If Allowance for Doubtful Accounts has a $900 credit balance, the adjustment to record bad debts for the period will require a O debit to Allowance for Doubtful Accounts for $4,100. credit to Allowance for Doubtful Accounts for $5,000. debit to Bad Debt Expense for $4,100. debit to Bad Debt Expense for $5,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 84BPSB: Aging Method Bad Debt Expense Carol Simon, the manager of Handy Plumbing has provided the following...

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Bad Debt Expense: Aging Method Glencoe Supply had the following accounts receivable aging schedule at the end of a recent year. The balance in Glencoes allowance for doubtful accounts at the beginning of the year was $58,620 (credit). During the year, accounts in the total amount of $62,400 were written off. Required: 1. Determine bad debt expense. 2. Prepare the journal entry to record bad debt expense. 3. If Glencoe had written off $90,000 of receivables as uncollectible during the year, how much would bad debt expense reported on the income statement have changed?
Entries for bad debt expense under the direct write-off and allowance methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel 21,550 Lee Drake 33,925 Jenny Green 27,565 Mike Lamb 19,460 Total 102,500 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days 715,000 1% 31-60 days 310,000 2 61 -90 days 102,000 15 91-120 days 76,000 30 More than 120 days 97,000 60 Total receivables 1,300,000 A. Journalize the write-offs under the direct write-off method. B. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of 95,000 and the company uses the analysis of receivables method. C. How much higher (lower) would Seaforth International s net income have been under the allowance method than under the direct write-off method?
Estimating allowance for doubtful accounts Evers Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.
Aging Method Bad Debt Expense Cindy Bagnal, the manager of Cayce Printing Service, has provided the following aging schedule for Cayces accounts receivable Cindy indicates that the $121,100 of accounts receivable identified in the table does not include $4,600 of receivables that should be written off. Required: 1. Journalize the $4,600 write-off. 2. Determine the desired post adjustment balance in allowance for doubtful accounts (round each aging category to the nearest dollar). 3. If the balance in allowance for doubtful accounts before the $4,600 write-off was a debit of $700, compute bad debt expense. Prepare the adjusting entry to record bad debt expense.
Tines Commerce computes bad debt based on the allowance method. They determine their current years balance estimation to be a credit of $45,000. The previous period had a credit balance in Allowance for Doubtful Accounts of $12,000. What should be the reported figure in the adjusting entry for the current period? A. $12,000 B. $45,000 C. $33,000 D. $57,000
QUESTION 10 An aging of a company's accounts receivable indicates that $100,000 are estimated to be uncollectible. The Allowance for Doubtful Accounts has a $32,000 debit balance (the allowance account is short by $32,000). Calculate the required adjustment to record bad debt expense for the period.
Question 15 A company has provided the following information for Allowance for Doubtful Accounts: Allowance for Doubtful Accounts Beginning Balance = $2,700 Wrote-off $2,100 of uncollectible accounts Allowance for Doubtful Accounts Ending Balance = 3,200 How much did the company record as Bad Debt Expense? $3,800 None of these are correct. $2,600 $500 O $1,600
Question 8 of 33 -/6 E VICW FUICics Current Attempt in Progress Oriole Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $ 603000 and credit sales are $ 273000O. Management estimates that 4% of accounts receivable will be uncollectible. What adjusting entry will Oriole Company make to record bad debt expense if the Allowance for Doubtful Accounts has a $ 4500 credit balance before adjustment? Bad Debt Expense 24120 Accounts Receivable 24120 Bad Debt Expense 19620 Allowance for Doubtful 19620 Accounts Bad Debt Expense 19620 Accounts Receivable 19620 op
An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $4,269. If Allowance for Doubtful Accounts has a $1,349 credit balance, the adjustment to record the bad debt expense for the period will require a Oa. debit to Bad Debt Expense for $4,269. Ob. debit to Bad Debt Expense for $2,920. Oc. debit to Bad Debt Expense for $5,618. Od. credit to Allowance for Doubtful Accounts for $1,349.
Question 8 At January 1, 2025, XYZ Company had an allowance for doubtful accounts with a $39,300 credit balance. XYZ Company reported the following information for 2025: 4 Sales revenue Cash collections from customers Write-offs of uncollectible accounts Recoveries of previously written-off accounts Bad debt expense In order to estimate the bad debt expense, XYZ Company prepared the following aging schedule at December 31, 2025: not past due 1-30 days past due 31-60 days past due 61-90 days past due over 90 days past due total accounts receivable $392,800 $307,500 ? Accounts Receivable % Uncollectible 3% 7% 11% 24% 46% $181,000 $ 36,000 $ 42,000 $ 14,600 $ 31,090 $ 21,000 $ 13,000 $293,000 Calculate XYZ Company's accounts receivable balance at January 1, 2025.
An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $5,249. If Allowance for Doubtful Accounts has a $1,383 credit balance, the adjustment to record the bad debt expense for the period will require a Oa. debit to Bad Debt Expense for $3,866. Ob. credit to Allowance for Doubtful Accounts for $5,249. Oc. debit to Bad Debt Expense for $1.383. Od. debit to Bad Debt Expense for $5,249. Das
PROBLEM 9 Robin Company uses the following allowance method of accounting for bad debts. The following summary schedule was prepared from an aging of accounts receivable outstanding on December 31, 2021. No. of Days Outstanding 0-30 days 31-60 days Over 60 days The following information is available for the current year: Net credit sales for the year Allowance for uncollectible accounts, January 1, 2021 Allowance for uncollectible accounts, December 31, 2021 (before adjustment) Amount P500,000 200,000 100,000 Probability of Collection 98% 90% 80% P4,000,000 5,000 (cr.) 2,000 (dr.) Explain how to get the Uncollectible accounts expense Explain the allowance for uncollectible accounts reported in word's financial statements for 2021.