djustedCredit000ableatsProblem 5-18 (AICPA Adapted)Ladd Company provided the following information for thecurrent year:Allowance for doubtful accounts-January 1Sales-all on creditSales discountSales returns and allowancesAccounts written off as uncollectibleRecovery of accounts written offThe entity recorded doubtful accounts expense at the rate of5% of net credit sales.What amount should be reported as allowance for doubtfulaccounts on December 31?a. 450,000b. 625,000c. 600,000d. 550,000200,0009,500,0001,000,000500,000100,00050,000Problem 5-19 (AICPA Adapted)Effective with the current year, Hall Company adopted anew accounting method for estimating the allowance fordoubtful accounts at the amount indicated by the year-endaging of accounts receivable.Allowance for doubtful accounts, January 1Provision for doubtful accounts during the yearat 2% on credit sales of P10,000,000Accounts written off during the yearEstimated uncollectible accounts per aging, December 31a. 220,000b. 205,000c. 200,000d. 175,000What amount should be reported as doubtful accountsexpense for the current year?Galaxy S21+ 5G147250,000200,000205,000220,000000,000,0

Bad debt means where the amount receivable from debtor is not expected to realize and hence it…

Problem 5-18 (AICPA Adapted) Ladd Company provided the following information for the current year: Allowance for doubtful accounts-January 1 Sales-all on credit Sales discount Sales returns and allowances Accounts written off as uncollectible Recovery of accounts written off 200,000 9,500,000 1,000,000 500,000 100,000 50,000 The entity recorded doubtful accounts expense at the rate of 5% of net credit sales. What amount should be reported as allowance for doubtful accounts on December 31? a. 450,000 b. 625,000 c. 600,000 d. 550,000

Problem 5-18 (AICPA Adapted) Ladd Company provided the following information for the current year: Allowance for doubtful accounts-January 1 Sales-all on credit Sales discount Sales returns and allowances Accounts written off as uncollectible Recovery of accounts written off 200,000 9,500,000 1,000,000 500,000 100,000 50,000 The entity recorded doubtful accounts expense at the rate of 5% of net credit sales. What amount should be reported as allowance for doubtful accounts on December 31? a. 450,000 b. 625,000 c. 600,000 d. 550,000

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 25E

See similar textbooks

Similar questions

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.
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.
Entries for bad debt expense under the direct write-off and allowance methods The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: A. Journalize the transactions under the direct write-off method. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: C. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
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.
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Effective with the current year, Fateful Company adopted a new accounting method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging of accounts receivable. Allowance for doubtful accounts, January 1 Provision for doubtful accounts during the year 250,000 (2% on credit sales of P10,000,000) Accounts written off during the year 200,000 205,000 220,000 Estimated uncollectible accounts per aging, December 31 What amount should be reported as doubtful accounts expense for the current year?
The allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $656 of accounts receivable are uncollectible. Allowance for Doubtful Accounts has a debit balance of $193. The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of Oa. $849 Ob. $656 Oc. $193 Od. $463
SIPAG Company provided the following accounts abstracted from the unadjusted trial balance at year- end: - Accounts Receivable (debit) 5,000,000 Allowance for doubtful accounts (credit) - 40,000 - Net credit sales (credit) 20,000,000 The entity estimated that 3% of the gross accounts receivable will become uncollectible. What amount should be recognize as doubtful accounts expense for the current year?
5. Guernsey Company began operations on January 1, 2021. On December 31, 2021, the entity provided doubtful accounts based on 1% of annual credit sales. On January 1, 2022, the entity changed the method of determining the allowance for doubtful accounts by aging of accounts receivable. Days past invoice date Percent uncollectible 0 - 30 31 90 91 - 180 Over 180 1 5 20 80 In addition, the entity wrote off all accounts receivable that were over 1 year old. The entity provided the following additional information: 0 - 30 31 - 90 91 - 180 Over 180 Credit sales Collections, including recovery Accounts written off Recovery of accounts previously written off Days past invoice date at December 31 2022 2021 3,000,000 2,800,000 2,915,000 2,400,000 27,000 7,000 300,000 80,000 60,000 25,000 None None 250,000 90,000 45,000 15,000 a. What is the allowance for doubtful accounts on December 31, 2021? b. What is the allowance for doubtful accounts on December 31, 2022? c. What amount should be reported…
From inception af aperations. XYZ Company pravided for uncollectible accounts receivable under the allowance method using the percentage of sales method. The balance in the allowance for doubtful accounts was on January 1, 2020. During the current year, credit sales totaled interim provisians for doubtful accounts were made at 2% of credit sales, P300,000 af bad debts were written off, and recaveries of accounts previously written off amounted to PS0,00. The aging of accounts receivable showed the following summary Collectible Classification November to December July to October | January to June Priar to January 1, 2020 Balance 5.000,000 95% 2.000,000 1.500.000 400.000 90% 75% 25% Based on the review of collectibility of the account balances in "prior to January 1, 2020 aging category, additional accounts totaling P100,000 are to be written off on December 31, 2020. Effective with the year ended December 31, 2020, the entity adopted a new accounting method for estimating the alowance…
Required information [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles Accounts Receivable $ 880,000 352,000 70, 400 35, 200 14, 080 View transaction list X X Date December 31 X Percent Uncollectible (#.##%) X Record entry Required information [The following information applies to the questions displayed below.] Note: Enter debits before credits. On…
The allowance for doubtful accounts had a credit balance of Dreamer Company reported the "Receivables" account with Problem 4-1 (IAA) Deeamer Company reported the "Receivables" account with a debit balance of P2,000,000 at year-end. of P50,000 on same date. Subsidiary details revealed the following: le Trade accounts receivable Trade notes receivable Installments receivable, normally due 1 year to two years Customers' accounts reporting credit 775,000 100,000 300,000 ts. balances arising from sales return Advance payments for purchase of merchandise 30,000) 150,000 ad Customers' accounts reporting credit balances arising from advance payments Cash advance to subsidiary for Claim from insurance entity Subscriptions receivable due in 60 days Accrued interest receivable ( 20,000) 400,000 15,000 300,000 10,000 2,000,000 Required: cho a. Prepare one compound entry to reclassify the receivables account. b. Compute the amount to be presented as "trade and other receivables" under current…