ankine Company estimates its bad debt expense by aging its accounts receivable and applying percentages to various age groups of the accounts. Rankine calculated a total of $4,000 possible credit losses as of December 31. ccounts Receivable has a balance of $128,000 and the Allowance for Doubtful Accounts has a credit balance of $500 before adjustment at December 31. /hat is the amount of the December 31 adjustment to provide for credit losses? /hat is the net amount of accounts receivable that should be included in current assets?
Q: At the end of the current year, the accounts receivable account has a debit balance of $1,184,000…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: Benson Company estimates its uncollectible accounts by aging its accounts receivable and applying…
A: When a receivable is no longer recoverable because a customer is unable to fulfil their…
Q: At the end of the current year, the accounts receivable account has a debit balance of $821,000 and…
A: Allowance for doubtful accounts is a contra asset for Accounts receivable and it must have credit…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…
Q: What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: Use the following information to answer the next two questions: Harris Company uses the allowance…
A: Allowance method: It is the method for accounting bad debt expense, where the amount of…
Q: Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable…
A: Estimated uncollectible amount = accounts receivable balance x 6% = 258000*6% = $15,480
Q: Metlock, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that…
A: Estimated uncollectible amounts = Accounts receivable at the end of the year x % uncollectible Bad…
Q: An aging of a company's accounts receivable indicates the estimate of uncollectible receivables…
A: Given that estimate of uncollectible receivables = $4458 Allowance for Doubtful Accounts = $ 1118
Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…
A: Bad debts expense is an expense caused due to non-payment by the accounts receivable or part payment…
Q: At the end of the current year, the accounts receivable account has a debit balance of $2,700,000…
A: Amount of adjusting entry For 1 st = sales × 1/2 ×1%
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: bad debt expense shows the amount of account receivables that a business does not expect to receive…
Q: Tanning Company analyzes its receivables to estimate bad debt expenses. The accounts receivable…
A: Calculate bad debt expense.
Q: An aging of a company's accounts receivable indicates the estimate of uncollectible receivables…
A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
Q: Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense and…
A: Accounts receivable: It refers to the amount that is owed by the customers from the business for the…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: It is provision created for the account receivable with default risk of payment. It is written in…
Q: Use the following information to answer the next two questions: Harris Company uses the allowance…
A: For this transaction, the Accounting equation is shown in the accompanying table. In this case, an…
Q: Randall company estimates it’s bad debts expense by aging its accounts receivable and applying…
A: The allowance for doubtful accounts is created to record estimated bad debt expense for the period.
Q: Tanning Company analyzes its recelvables to estimate bad debt expense. The accounts receivable…
A: Accounts Receivable Balance $3,70,000 Estimated uncollectible amount ($370000 * 7%) $25,900…
Q: Tanning company analyzes its receivables to estimate bad debt expense. The accounts receivable…
A: Allowance for doubtful debts is considered as the contra asset item i.e used to decrease the value…
Q: Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable…
A: Total balance required in Allowance for Doubtful Accounts = Accounts receivable*5% = $390,000*5% =…
Q: Sam’s Auto Parts uses the aging method to estimate bad debt expense. At the end of 2018, the company…
A: : Bad debt is an expense that a business incurs once the repayment of credit previously extended to…
Q: Whispering Winds Corp. uses the percentage-of-receivables basis to record bad debt expense and…
A: Bad debt expense refers to the amount of accounts receivables that become uncollectible by the…
Q: Using the % of aging-of-accounts receivable to estimate uncollectible accounts, The Valley…
A: An allowance for uncollectible account has been prepared on the basis of estimation of bad debts…
Q: During the current year, Witz Electric, Inc., recorded credit sales of $860,000. Based on prior…
A: Bad debt expense = $860,000 × 2% = $17,200
Q: Use the following information to answer the next two questions: Harris Company uses the allowance…
A: Answer: Option a $403,900 is the correct answer.
Q: At the end of the current year, the accounts receivable account has a debit balance of $2,700,000…
A: Bad debt expense refers to the amount recorded by the entity to account for the amount of…
Q: As of December 31, Frappe Company has a balance of $5,000 in accounts receivable. Of this amount,…
A: Bad Debts Expense: Bad Debts are accounts receivable that a company does not expect to collect and…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Compute amount of adjusting entry to provide for doubtful accounts under assumption 1 as shown…
Q: Lewis Company uses the allowance method for recording its expected credit losses. It estimates bad…
A: Answer: Option c $119,800 is the correct answer.
Q: Winstead & Company has accounts receivable of $120,000 and a negative balance of $1,000 in the…
A: Introduction: Accounts receivable: Its a current Asset Item which is to be shown in Balance sheet…
Q: the amount of bad debt expense is?
A: Allowance method:- In the allowance method bad debts are estimated even before they occur in…
Q: Shenzhen Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that…
A: Estimated uncollectible amount = Accounts Receivable x 1% = £420,000 x 1% = £4200 Bad debt expense…
Q: A company has the following unadjusted account balance at December 31 of the current year:…
A: Under Aging method, Estimated uncollectible amount computed is the amount of Allowance for Doubtful…
Q: Metlock, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that…
A: Estimated uncollectible accounts = Accounts receivable x 3% = $361,400 x 3% = $10,842
Q: a. The allowance account before adjustment has a negative balance of $(18,500). Bad debt expense is…
A: Solution:- Given, The accounts receivable account has a balance = $2,875,000 Sales for the year =…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: Given information, Accounts receivable=$955,000 Sales =$10,820,000
Q: Use the following information to answer the next two questions: Lewis Company uses the allowance…
A: The bad debt expenses needs to be computed as a percentage of credit sales.
Q: The company uses two aging categories to estimate uncollectible accounts. Accounts less than 60 days…
A: Uncollectible current accounts = current accounts x 3% = $34,600 x 3% = $10380
Q: Use the preceding analysis to compute the estimated amount of uncollectible receivable Prepare the…
A: S.No Balance (A) Ageing of Receivables Expected % uncollectible (B) Estimated Bad debts…
Q: Bonita Industries uses the percentage-of-receivables basis to record bad debt expense and concludes…
A: Bad debt expenses need to e recognised in the year of the sale of the goods based on estimated…
Q: An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts…
A: Bad Debts Expense to be recorded = Required credit balance in Allowance for Doubtful Accounts…
Q: Stello Co. uses the percentage of credit sales method to determine its bad debt expense. All sales…
A: Bad Debts Expense = Net credit sales x % of net credit sales to be uncollectible
Q: Dorothy Company uses the percentage-of-receivables method for recording bad debt expense. The…
A: Given the following information: Accounts receivable balance: $250,000 Credit sales: $1,000,000…
Q: Oriole Company uses the percentage-of-receivables basis to record bad debt expense and concludes…
A: If there is a debit balance in the allowance for doubtful accounts, its balance is added to the bad…
Q: Skysong, Inc. uses the percentage-of-receivables basis to record bad debt expense and concludes that…
A: Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account…
Q: Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has…
A: There exists two method of recording allowance for doubtful accounts, namely Percentage of…
Q: Florence Company had a debit balance of $1,500 in the Allowance for Doubtful Accounts account and a…
A: Answer: Bad debt expense is an expenses which company does not expect to receive and the company is…
Q: Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Lennon Electronics…
A: Under the aging method, first the post adjustment in allowance for doubtful accounts is computed.…
Q: At the end of the current year, the accounts receivable account has a debit balance of $2,700,000…
A: Bad debt represents the value of accounts receivable that is not recovered from the customers.
solve this please
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Determining Bad Debt Expense Using the Aging Method At the beginning of the year, Tennyson Auto Parts had an accounts receivable balance of $31,800 and a balance in the allowance for doubtful accounts of $2,980 (credit). During the year, Tennyson had credit sales of $624,300, collected accounts receivable in the amount of $602,700, wrote off $18,600 of accounts receivable, and had the following data for accounts receivable at the end of the period: Required: 1. Determine the desired post adjustment balance in allowance for doubtful accounts. 2. Determine the balance in allowance for doubtful accounts before the bad debt expense adjusting entry is posted. 3. Compute bad debt expense. 4. Prepare the adjusting entry to record bad debt expense.The following accounts receivable information pertains to Select Distributors. A. Determine the estimated uncollectible bad debt for Select Distributors in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $233,180; record the year-end entry for bad debt, taking this into consideration. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $199,440; record the year-end entry for bad debt, taking this into consideration. E. On March 21, 2019, Select Distributors identifies Aida Normans account as uncollectible in the amount of $10,890. Record the entry for identification.Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- The following accounts receivable information pertains to Luxury Cruises. A. Determine the estimated uncollectible bad debt for Luxury Cruises in 2018 using the balance sheet aging of receivables method. B. Record the year-end 2018 adjusting journal entry for bad debt. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $187,450; record the year-end entry for bad debt, taking this into consideration. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $206,770; record the year-end entry for bad debt, taking this into consideration. E. On January 24, 2019, Luxury Cruises identifies Landon Walkers account as uncollectible in the amount of $4,650. Record the entry for identification.Ink Records recorded $2,333,898 in credit sales for the year and $1,466,990 in accounts receivable. The uncollectible percentage is 3% for the income statement method and 5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $20,254; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.Earrings Depot records bad debt using the allowance, balance sheet method. They recorded $97,440 in accounts receivable for the year and $288,550 in credit sales. The uncollectible percentage is 5.5%. What is the bad debt estimation for the year using the balance sheet method?
- Average Uncollectible Account Losses and Bad Debt Expense The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts: Required: 1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018. 2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of loses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method. 3. CONCEPTUAL CONNECTION Do you believe this estimate of bad debt expense is reasonable? 4. CONCEPTUAL CONNECTION How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were What other action would management consider?Tonis Tech Shop has total credit sales for the year of 170,000 and estimates that 3% of its credit sales will be uncollectible. Allowance for Doubtful Accounts has a credit balance of 275. Prepare the adjusting entry at year-end for the estimated bad debt expense. (a) Based on an aging of its accounts receivable, Kyles Cyclery estimates that 3,200 of its year-end accounts receivable will be uncollectible. Allowance for Doubtful Accounts has a debit balance of 280 at year-end. Prepare the adjusting entry at year-end for the estimated uncollectible accounts.Funnel Direct recorded $1,345,780 in credit sales for the year and $695,455 in accounts receivable. The uncollectible percentage is 4.4% for the income statement method and 4% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $13,888; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
- Shimmer Products is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet method of receivables, and balance sheet aging of receivables method. If it uses the income statement method, bad debt would be estimated at 5.6% of credit sales. If it were to use the balance sheet method, it would estimate bad debt at 13.7% percent of accounts receivable. If it were to use the balance sheet aging of receivables method, it would split its receivables into three categories: 0–30 days past due at 5%, 31–90 days past due at 21%, and over 90 days past due at 30%. There is currently a zero balance, transferred from the prior years Allowance for Doubtful Accounts. The following information is available from the year-end income statement and balance sheet. There is also additional information regarding the distribution of accounts receivable by age. Prepare the year-end adjusting entry for bad debt, using A. Income statement method B. Balance sheet method of receivables C. Balance sheet aging of receivables method D. Which method should the company choose, and why?At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in Allowance for Doubtful Accounts. Martel has now been in business for three years and wants to base its estimate of uncollectible accounts on its own experience. Assume that Martel Co.s adjusting entry for uncollectible accounts on December 31, 20-2, was a debit to Bad Debt Expense and a credit to Allowance for Doubtful Accounts of 25,000. (a) Estimate Martels uncollectible accounts percentage based on its actual bad debt experience during the past two years. (b) Prepare the adjusting entry on December 31, 20-3, for Martel Co.s uncollectible accounts.Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.