On 31 Dec, Blue Ocean Pte Ltd's unadjusted trial balance includes the following items: Accounts Receivables Allowance For Doubtful Accounts $210,000 debit $2,500 credit There was objective evidence that 15% of a $20,000 debt owed by a debtor, Red Sea Logistics, would most probably be uncollectible. An aging analysis of the rest of the accounts receivables indicated that an estimated 5% of these accounts would not be collectible. The company uses the allowance method to value its accounts receivable. Present the adjusting entry to record Bad Debt Expenses. Show narration and workings. Explain why using the allowance method is better than the direct write-off method.
Q: please answer with proper introduction explanation computation steps clearly and completely for all…
A: The question is asking you to compare the cost of manufacturing a component in-house with the cost…
Q: On March 15, 2022, Helen purchased and placed in service a new Escalade. The purchase price of the…
A: To calculate the total depreciation deduction for the vehicle in 2022, we need to consider two…
Q: Hansaben
A: To calculate the capital gain recognized on the sale and distributions from Lone Star, we need to…
Q: Required information Convers Corporation (calendar year-end) acquired the following assets during…
A: Depreciation amounts with 100% bonus depreciation.Machinery: $108,000Computer equipment: $48,000Used…
Q: Alpesh
A: Certainly! Let's break down the analysis of whether Futura Company should make or buy the starters…
Q: Required information [The following information applies to the questions displayed below.]…
A: Total joint costs = $324,000 + $243,000 = $567,000 Grade Number 1:Sales = $486,000Cost of Goods Sold…
Q: Valmont Company has developed a new industrial piece of equipment called the XP-200. The company is…
A: Valmont Company 1. Determination of the price for XP-200 using absorption cost-plus pricing: Unit…
Q: Instructions: 1. You MUST open the excel file attachment available in this HOMEWORK 1 assignment in…
A: The objective of the question is to prepare the opening journal entry on Dec. 1, 2023, prepare the…
Q: Perez Company established a predetermined fixed overhead cost rate of $37 per unit of product. The…
A: Given,Predetermined fixed overhead cost rate = $ 37 per unitPlanned units = 6,100 unitsActual fixed…
Q: None
A: **Req 1A: Calculate the tax amounts for Regis Company:** 1. **FICA Social Security Tax:** - The…
Q: None
A: Detailed explanation:Absorption costing method shows the product costs which includes direct…
Q: Give me correct answer and explanation.vd
A: Part 2: Explanation:Step 1: Calculate the ending inventory at cost for each year by dividing the…
Q: HELP ASAP ^
A: **Diamond Level:** - Total gross margin: Diamond level customers contribute the most to the total…
Q: Ch E HW 3 Employee Earnings Record eBook Mary's Luxury Travel uses a weekly federal income tax…
A: The objective of the question is to calculate the earnings record for Andrew Cole for the week ended…
Q: Rebecca Smith has employment income of $100,290. Her employer deducted the following amounts from…
A: In the provided tax scenario for Rebecca, we initially calculated her tax liability based on her…
Q: None
A: Step 1: To calculate the return on investment (ROI), you can use the formula: ROI = (Net Income /…
Q: Vinubhai
A: Let's break down the process step by step:1. Understanding Depreciable Base:The depreciable base is…
Q: None
A: Part 2: Explanation:Step 1: Determine the Principal Amount BorrowedThe principal amount borrowed is…
Q: If a company’s quarterly production budget is for 54,000 units to be produced, its beginning…
A: Step 1: Understanding the information givenProduction = 54,000 unitsBeginning Inventory = 14,400…
Q: You are testing the null hypothesis that there is no relationship between two variables, X and Y.…
A: Ans:a) To get the FSTAT from the given information: Sum of Squares due to Regression ( SSR) =…
Q: A direct material standard cost is: Group of answer choices The cost of direct materials that…
A: The objective of the question is to understand the concept of direct material standard cost in…
Q: Rahul
A: Inventory: Debited for $125,625, reflecting the received materials at the market price (37,500…
Q: Calculate the asset turnover from the information given below. Sales $30,000 Property 14,000…
A: The objective of this question is to calculate the asset turnover ratio, which is a measure of a…
Q: During the month, the company had $28,000 in revenue from products it provided to customers. All…
A: Journal Entries for HI Palms (Perpetual Inventory Method)1. Sales of Products on Account:Date: Any…
Q: Sagar
A: Part 2: Explanation:Step 1: Calculate the total units available for sale.- Beginning inventory: 540…
Q: HELP ASAP #
A: Rutland Business Services (RBS) - Income Statement (August)Revenue from Clients:Total Billable Hours…
Q: Ginger, Incorporated, has declared a $8 per share dividend. Suppose capital gains are not taxed, but…
A: The term "ex-dividend" refers to the period of time during which a stock is traded without the right…
Q: None
A: Part 2: ExplanationStep 1: Materials Inventory- Debit the Materials Inventory account for the total…
Q: On June 15, 2024, Perfect Furniture discarded equipment that had a cost of $8,000, a residual value…
A: Step 1:AnswerDate Particulars ExplanationDebit CreditJun15Accumulated depreciation…
Q: Ashvinn
A: Steps :- Thad's qualified business income deduction (QBI) for tax year 2022.Here's how:Taxable…
Q: Post the transactions to t- account ( post entries in the order of information presented in the…
A: Detailed explanation:T accounts are accounting tools used to record the business transactions.Every…
Q: Please do not give solution in image format thanku so
A: Step 1:To calculate the predetermined overhead rates, we need to determine the total budgeted…
Q: Assume that on September 1, Office Depot had an inventory that included a variety of calculators.…
A: Step 1:Journal Entries as follows ; DateAccount titles and…
Q: Which of the following line items will not be found in the absorption costing income statement?…
A: The objective of the question is to identify which line item among the given options will not be…
Q: Please do not give solution in image format thanku
A: Sheridan Company - Production Budget (January & February 2022)Accounting Period January…
Q: Vishnu
A:
Q: Please do not give solution in image format thanku
A: Average Total Asset = (Beginning total asset + Ending total asset)/2…
Q: Required information Problem 24-2A (Algo) Payback period, accounting rate of return, net present…
A: It appears you're encountering two different problems:Problem 24-2A (Algo): This problem deals with…
Q: Crane Corp. is considering purchasing one of two new diagnostic machines. Either machine would make…
A: Machine B:Original cost (Initial Cost) = $186,000Estimated annual cash inflows (CFt) =…
Q: Zaria Inc. provides the following cost information for producing 10,000 units of inventory during…
A: The objective of the question is to calculate the product cost per unit under variable costing…
Q: The company is planning to use a new material throughout 2023. This will reduce variable costs by…
A: Step 1: To analyze whether the company should proceed with the plan, we can use cost-volume-profit…
Q: Employee Earnings Record Mary’s Luxury Travel uses a weekly federal income tax withholding table.…
A: The objective of the question is to calculate the earnings record for Andrew Cole for the week…
Q: PART ONE Assume that you have the following investment alternatives are at your disposal, shown with…
A: 1. Expected Return (ER)Treasury Bill (Risk-Free Rate) = 0.5% (given)Stock AER_A = (0.1 * -22%) +…
Q: Coe Parts applies fixed overhead at the rate of $6.82 per unit. Budgeted fixed overhead was…
A: The objective of the question is to calculate the fixed overhead price and production volume…
Q: Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2, 20Y8.…
A: Part 2: Explanation:Step 1: Calculate Gross Earnings- For Arnett: $3,800 * 12 = $45,600- For Cruz:…
Q: The following transactions were completed by Emmanuel Company during the current fiscal year ended…
A: Part 2: Explanation:1.Journalize the transactions: a. January 29: - Debit: Cash (40% of $17,000…
Q: Solomon Company has two divisions, A and B. Division A manufactures 6,600 units of product per…
A: Approach to solving the question: I have provided an explanation and reasoning for the values used…
Q: Crane Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an…
A: Calculating the total inventory value for Crane Company based on the provided information.Here's the…
Q: Please answer in typing format
A: To compute the cost per equivalent unit for direct materials and conversion, we need to use the…
Q: On April 12, 2023, Prism Ltd., a camera lens manufacturer, paid cash of $555,800 for real estate…
A: Step 1:Allocation of lumpsum cost to individual PPE asset: (a)(b)(c)PPE AssetAppraised ValuesRatio…
Step by step
Solved in 2 steps
- 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.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.A company uses the percent of receivables method to estimate doubtful accounts. At the end of the calendar year, it has the following unadjusted balances: Accounts Receivable, debit balance of Php 280,000 and Allowance for Doubtful Accounts, debit balance of Php 2,000, Assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible, what amount should be debited to Bad Debts Expense?
- At 31 December 20X8, Small Ltd. reported gross accounts receivable of $2,481,800. Investigation showed the following: The credit balance in the allowance for doubtful accounts was $182,400 after write-offs for the year but before any bad debt adjustment. Bad debt expense is based on a percentage of receivables. Based on the latest available facts, $280,000 will not be collected due to collection issues. Terms of 1/10, n/30 were granted to all customers. Accounts receivable were recorded gross, and the discounts taken were recorded when taken by the customers in a discounts account, reported contra to the sales account. Estimated discounts inherent in the closing accounts receivable balance were $30,600. The allowance for sales discounts account was established at $29,800 last year and has not been adjusted since. Prepare year-end adjusting entries with respect to accounts receivable. Show how the net accounts receivable would appear on the statement of financial position on 31…On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,400; Allowance for Doubtful Accounts, credit balance of $1,081. What amount should be debited to Bad Debts Expense, assuming 5% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible? Multiple Choice $6,001. $2,947. $3,839. $1,081. $4,920.Blackhorse Productions, Inc., used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $23,550. The account had an unadjusted credit balance of $11,900 at that time. a. The appropriate bad debt adjustment was recorded. b. Later, an account receivable for $2,900 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction +for increase or -for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.) Assets Liabilities Stockholders' Equity
- On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $97,500; Allowance for Doubtful Accounts, credit balance of $991. What amount should be debited to Bad Debts Expense, assuming 6% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?Blackhorse Productions, Incorporated, used the aging of accounts receivable method to estimate that its Allowance for Doubtful Accounts should be $22,550. The account had an unadjusted credit balance of $11,400 at that time. The appropriate bad debt adjustment was recorded. Later, an account receivable for $2,400 was determined to be uncollectible and was written off. Required: For each transaction listed above, indicate the amount and direction (+ for increase or − for decrease) of effects on the financial statement accounts and on the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign.)Marigold Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become uncollectible. Accounts receivable are $416,900 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,545. (a) Prepare the adjusting journal entry to record bad debt expense for the year. If the allowance for doubtful accounts had a debit balance of $950 instead of a credit balance of $2,545, prepare the adjusting journal entry for bad debt expense. (b) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (a) (b)
- XZ company provided the following accounts abstracted from the unadjusted trial balance at year-end: A/R: 5,000,000(debit) Allowance for Doubtful Accounts: 50,000 (debit) Gross Credit Sales: 20,000,000 (credit) The entity estimated that 3% of the gross accounts receivable will become uncollectible. Assuming a P500,000 sales returns for the year, what amount should be recognized as doubtful accounts expense for the period?On December 31 of the current year the unadjusted trial balance of a company using the Percent of receivables method to estimate bad debt included in the following: Accounts receivable debt balance of 97,700; Allowance for doubtful accounts, credit balance of 1,011. what amount should be debited to bad debts expense, assuming 4% of outstanding account receivable at the end of the current year are estimated to be uncollectedThe following accounts were abstracted from Todd Company's unadjusted trial balance at December 31: Accounts Receivable Allowance for Doubtful Accounts Net Credit Sales Select one: Todd Company estimates that 2% of net credit sales will become uncollectible. After adjustment at December 31, the Bad Debt Expense should have a balance of: a. $26,000 Debit $800,000 b. $60,000 Dic. $70,000 Od. $32,000 e. $86,000 Credit 10,000 $3,000,000