The books of Hope Enterprises showed the following adjusting entries at the end of the period: Depreciation Expense 5,000 Accumulated depreciation 5,000 Bad debt expense 1,000 Allowance for bad debts 1,000 Unearned rent income 3,000 Rent income 3,000 Utilities expense 4,000 Accrued utilities expense 4,000 How much is the total amount for reversal at the start of the next fiscal year relating to these adjusting entries? (The reversing entry/ies serve/s as the solution for this problem)

The books of Hope Enterprises showed the following adjusting entries at the end of the period: Depreciation Expense 5,000 Accumulated depreciation 5,000 Bad debt expense 1,000 Allowance for bad debts 1,000 Unearned rent income 3,000 Rent income 3,000 Utilities expense 4,000 Accrued utilities expense 4,000 How much is the total amount for reversal at the start of the next fiscal year relating to these adjusting entries? (The reversing entry/ies serve/s as the solution for this problem)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 9PA: Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables....

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Before the year-end adjustment the Allowance for Doubtful Accounts has a debit balance of $5,000. Using the aging of receivables method, the desired balance of the Allowance for Doubtful Accounts is estimated as $35,000. a) What is the uncollectible accounts expense for the period? b) What is the journal entry required? c) What is the balance of the Allowance for Doubtful Accounts after adjustment? d) If the accounts receivable balance is $325,000, what is the net realizable value of the receivables after adjustment?
If necessary, record year-end adjusting entries for uncollectible accounts.Prepare the aging schedule for the following accounts receivable: Ageing classification (numbers of due days) Balance sheet as at 31 December Estimate of the percentage of the account that is uncollectible 0-30 days $120,000 1% 31-60 days 80,100 2 % 61-90 days 21,000 11% 91- 120 days 9,000 23% Más de 120 days 15,300 65% Total accounts receivable $245,400
At the end of the current year, the accounts receivable account has a debit balance of $6,800,000 and sales for the year total $81,500,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions:a. The allowance account before adjustment has a debit balance of $68,250. Bad debt expense is estimated at ¾ of 1% of sales.b. The allowance account before adjustment has a debit balance of $68,250. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $575,000.c. The allowance account before adjustment has a credit balance of $45,000. Bad debt expense is estimated at ½ of 1% of sales.d. The allowance account before adjustment has a credit balance of $45,000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $450,000.
At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts: Accounts not yet due = $72,000; estimated uncollectible = 7%. Accounts 1 to 30 days past due = $32,000; estimated uncollectible = 20%. Accounts more than 30 days past due = $8,000; estimated uncollectible = 50%. Required: Record the year-end adjusting entry for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible Accounts is $1,400 (debit). (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
At the end of the current year, using the aging of receivable method, management estimated that $15,750 of the accounts receivable balance would be uncollectible. Prior to any year-end adjustments, the Allowance for Doubtful Accounts had a debit balance of $375. What adjusting entry should the company make at the end of the current year to record its estimated bad debts expense?
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 December 31, 2018, the Leni Inc. account balances before the year-end adjusting entries are the following, Accounts receivable- P50000 Allowance for uncollectible accounts P4500 According to aging of accounts receivable, P6250 of the December 31 receivables are expected to be uncollectible. How much is the net realizable value of accounts receivable after adjustment?
Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Noren Company considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of $1,923,000 and sales for the year total $26,920,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: a. The allowance account before adjustment has a debit balance of $13,100. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a debit balance of $13,100. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $28,100. c. The allowance account before adjustment has a credit balance of $7,300. Bad debt expense is estimated at 1/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $7,300. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $60,600. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the…
Analysis of receivables methodAt the end of the current year, Accounts Receivable has a balance of$2,150,000; Allowance for Doubtful Accounts has a debit balance of$10,500; and sales for the year total $51,850, 000. Using the aging method,the balance of Allowance for Doubtful Accounts is estimated as $110,000.Determine (A) the amount of the adjusting entry for uncollectibleaccounts; (B) the adjusted balances of Accounts Receivable, Allowancefor Doubtful Accounts, and Bad Debt Expense; and (C) the net realizablevalue of accounts receivable.
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $764. During the year, previously written off accounts of $140 are reinstated and accounts totaling $736 are written off as uncollectible. The end-of-year balance (before adjustment) in Allowance for Doubtful Accounts should be?
Accounting Gowns, Inc. uses 'the percentage of receivables' basis to estimate its impairment loss. At December 31, 2020, per the accounts receivable aging report, Gowns estimates total uncollectible amounts in the future as $5,500. The beginning balance of allowance for impairment is $1,300. The accounts receivable balance at December 31, 2020 is $100,000. What is the amount of impairment loss for the year? Select one: $4,200 $5,500 $6,800 $1,300