3. Suppose you have the following information Accounts Receivable balance 50,000. Estimated uncollectable accounts 4% of accounts receivable. previous allowance for doubtful accounts credit balance 2,500. prepare the necessary adjusting journal entry. *
Q: At the end of the current year, Accounts Receivable has a balance of $515,000; Allowance for…
A: Adjusting entry refers to the changes made in the already recorded journal entries to ensure the…
Q: At the end of the current year, Accounts Receivable has a balance of $800,020; Allowance for…
A: Calculation of Bad Debt expense: Net sales = $ 3785000 Estimated at 1/2 of 1% net sales.…
Q: McKensie Company’s Accounts Receivable balance at December 31 was $100,000, and there was a negative…
A: Adjusted balance of allowance for uncollectibles accounts = $100,000*3% Adjusted balance of…
Q: Spade Agency separates its accounts receivable into three age groups for purposes of estimating the…
A: The Accounts uncollectible are those receivables, loans, or different obligations that have…
Q: At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for…
A: Sales = $3,500,000 Allowance for Doubtful Accounts = $5,500 (Credit balance) Bad Debts Expense is…
Q: sted trial balance shows accounts receivable of $99,000, allowance for doubtful ollectibles are…
A: The allowance for doubtful accounts balance at the end of the year should be 1.50% of the accounts…
Q: At the end of the current year, Accounts Receivable has a balance of $162,430 Allowance for Doubtful…
A: Formulas: Net realizable value of accounts receivable = Accounts Receivable - Allowance for…
Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of…
A: a. Adjusting entry = Balance of doubtful account - Allowance for doubtful account Adjusting entry =…
Q: Accounts receivable (beginning balance) $162,000 Allowance for doubtful accounts (beginning…
A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…
Q: Sequoia, Inc. has given you the following information from its aging of Accounts Receivable. Using…
A: Ageing Amount Percentage of Uncollectible Estimated Amount of Uncollectible Accounts Current $…
Q: A company has accounts receivable of $1,000,000 at 12/31 and estimates that the allowance for…
A: Allowance for bad debts is the provision created for the purpose of having sufficient funds if the…
Q: LaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories…
A: Allowance for bad debts: When a company is not sure of collecting it's receivable then it create an…
Q: At the end of the current year. Accounts Receivable has a balance of $4,375,000; Allowance for…
A: a.Detremine the amount of adjusting entry for uncollectible accounts.
Q: It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are…
A:
Q: Windsor Corp. had the following balances in receivable accounts at October 31, 2022 (in thousands):…
A:
Q: At the end of the current year, Accounts Receivable has a balance of $194,550; Allowance for…
A:
Q: At the end of the current year, Accounts Receivable has a balance of $750,000, Allowance for…
A: Journal: Recording of a business transactions in a chronological order.
Q: Using the following accounts, complete all journal entries: Accounts Receivable Allowance for…
A: The companies record uncollectible using different methods of recording bad debts.
Q: Assume that accounts receivable and the allowance for doubtful accounts (AFDA) ending balances were…
A: Uncollectibles=Accounts receivables×5%=OMR 500,000×5%=OMR 25,000
Q: Assume the following unadjusted account balances at the end of the accounting period for Chocolate…
A: Adjusting entries are the entries made at the end of accounting period to adjust the revenues and…
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: After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a…
A:
Q: The general ledger account for Accounts Receivable shows a debit balance of $50,000. Allowance for…
A: Under the aging method, first the post adjustment in allowance for doubtful accounts is computed.…
Q: At the end of the current year, Accounts Receivable has a balance of $765,000, Allowance for…
A: Formula: Net realizable value = Accounts receivable - Allowance for doubtful accounts
Q: еBook Show Me How Analysis of Receivables Method At the end of the current year, Accounts Receivable…
A: Computation of amount of adjusting entry of uncollectible accounts The balance for allowance for…
Q: At the end of the current year, Accounts Receivable has a balance of $665,000; Allowance for…
A: Bad debt expense is the term which is described as the expense that is recognized when receivable is…
Q: the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for Doubtful…
A: Answers: (a) Amount of the adjusting entry for uncollectible accounts = Net sales x Percentage…
Q: A. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include…
A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…
Q: At the end of the current year, Accounts Receivable has a balance of $4,770,000, Allowance for…
A: Adjusting entry for uncollectible accounts = Sales*3/4*1% Adjusted balance of allowance for doubtful…
Q: At the end of the current year, Accounts Receivable has a balance of $2,450,000, Allowance for…
A: The bad debt expense is the amount of money that an organization is not able to collect from its…
Q: At the end of the current year, Accounts Receivable has a balance of $700,000; Allowance for…
A: working notes: 1.( $ 3,500,000 * 0.50 % ) = $ 17,500 2.( $5500 + $17500 ) = $ 23,000
Q: At the end of the current year, Accounts Receivable has a balance of $195,120; Allowance for…
A: Answer 1) Adjusting Entry for bad debts expense Account Titles and Explanation Debit Credit…
Q: Accounts Receivable has a debit balance of $2,500, and the Allowance for UncollectibleAccounts has a…
A: Net realizable value = Accounts Receivable - Allowance for Uncollectible Accounts
Q: Analysis of Receivables Method At the end of the current year, Accounts Receivable has a balance of…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Candle Stix estimates that 2% of the $100,000 balance in accounts receivable is uncollectible. Prior…
A: Estimated uncollectible amount = Accounts receivable x 2% = $100,000 x 2% = $2,000
Q: A company that uses the allowance method, writes - off a receivable of $3,000 Prior to the journal…
A: Receivables are written off from the books when it seems that they will not be collected in future…
Q: At the end of the current year, Accounts Receivable has a balance of $926,220 Allowance for Doubtful…
A: Allowance for doubt full debt means a provision which is made for bad debts in future on the basis…
Q: A company has $80,000 in outstanding accounts receivable and it uses the allowance method to account…
A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…
Q: Q Company has the following information on December 31, 20x1 before any year-end adjustments: Net…
A: Note: In this question, bad debts are calculated monthly as well as annually. Firstly we should…
Q: Nichols Company uses the percentage of receivables method for recording bad debts expense. The…
A: Entries are used to document cost transactions. Every general ledger journal entry will include the…
Q: At the end of the current year, Accounts Receivable has a balance of $94,790; Allowance for Doubtful…
A: Solution a: Sales 1099000 *% of sales (1%) 1.00% Amount of Adjusting entry 10990
Q: Candle Stix estimates that 5% of the $100,000 balance in accounts receivable is uncollectible. Prior…
A: Adjusted Allowance of doubtful account = Accounts receivable * Uncollectible percentage Adjusted…
Q: Before adjusting for uncollectible accounts, Minderman Company has accounts receivable of $90,000…
A: The correct answer is Option (C).
Q: At the end of the current year, Accounts Receivable has a balance of $750,000; Allowance for…
A: This numerical has covered the concept of Accounts Receivable. By Solving this numerical we are able…
Q: Spade Agency separates its accounts receivable into three age groups for purposes of estimating the…
A: Compute the total estimated uncollectible.
Q: At the end of the current year, Accounts Receivable has a balance of $815,000; Allowance for…
A: Bad debt expenses means expenses that is due to uncollectibility of the account receivables. When…
Q: At the end of the current year, Accounts Receivable has a balance of $425,000, Allowance for…
A: Formula: Estimated bad debts expense = Sales x Bad debts Percentage on sales
Q: ABC Co. has the following information on December 31, 20x1 before any year-end adjustments. Net…
A: 8. Balance of the allowance for doubtful accounts on January 1, 20x1 = Allowance for doubtful…
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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- Required:1. Prepare journal entries for each transaction.2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on theinformation presented and balance off each account.3. Prepare the balance sheet extract as at Dec 31 to show the net realizable value for theAccounts Receivable.4. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 311. From page 5-4 of the VLN, when using the percent of receivables method, the math of multiplying accounts receivable by the percent of uncollectible accounts directly calculates: Group of answer choices A. The ending balance of the allowance for uncollectible accounts. B. Bad debt expense C. Net accounts receivable D. The amount to use in the adjusting entry to recognize bad debt expense 2. From page 5-4 of the VLN, what is the appropriate amount to record for bad debt expense when the company records the adjusting entry on 12/31? 3. Using the data from page 5-4 of the VLN, assume that instead of having a $500 credit balance in the Allowance for Uncollectible Accounts (AUA), the company had a $600 credit balance in the account. How would that affect the ending balance in the AUA after the company prepared the adjusting entry and posted it to the AUA? Group of answer choices A. The higher balance before the adjusting entry would cause the ending balance in the AUA to…(c) What is the balance of accounts receivable on it December 31 balance sheet? Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $ 180,000 1% 31-60 days past due 40,000 2 61-120 days past due 22,000 5 121-180 12,000 10 Over 180 days past due 8,000 25 Total accounts receivable $ 262,000
- How do you adjust this: (Adjusting entry) Accounts Receivable 150000 Allowance for Doubtful Accounts 5000 Allowance for doubtful accounts is ascertained to be 5% of the outstanding accounts receivableDuring its first year of operations, Pharoah Company had credit sales of $2,751,000, of which $366,200 remained uncollected at year-end. The credit manager estimates that $19,200 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectibles. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT INTERACTIVE TUTORIAL INTERACTIVE TUTORIAL Prepare the current assets section of the balance sheet for Pharoah Company, assuming that in addition to the receivables it has cash of $85,350, merchandise inventory of $189,550, and supplies of $12,900. (List current assets in order of liquidity) Pharoah Company Balance Sheet (partial) $Using the following accounts, complete all journal entries: Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense Credit Card Expense Sales Discount Sales Revenue For the year 2019, Bristax Corporation recorded $1,385,660 in credit sales and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. PLEASE NOTE: You must enter the account names exactly as written in the table above and all whole dollar amounts using "$" with commas as needed and rounded to two decimal places (i.e. $12,345.67). Record the year-end adjusting entry for 2019 bad debt using the income statement method. DR CR Record the year-end adjusting entry for 2019 bad debt using the balance sheet method. DR CR Assume there was a previous credit balance in Allowance for Doubtful Accounts of $37,430, record the year-end adjusting entry for bad debt using the income…
- Required:1. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31Accounts Receivable has a debit balance of $2,500, and the Allowance for UncollectibleAccounts has a credit balance of $500. A $70 account receivable is written off. What is theamount of net receivables (net realizable value) after the write-off?a. $2,430b. $1,930c. $2,000d. $2,070Brickman’s ending balance of Accounts Receivable is $19,500. Use the data in the preceding question to compute the net realizable value of Accounts Receivable at year-end. $16,800 $19,500 $17,400 $17,900
- Write a journal entry for the following beginning balance: “accounts receivable (net of allowance of 5200) 235,884"Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balance in each case. a. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $7,040. Amount added Ending balance b. Credit balance of $460 in Allowance for Doubtful Accounts just prior to adjustment. Uncollectible receivables are estimated at 3% of credit sales, which totaled $1,009,000 for the year. Amount added Ending balance1. Record the January 1 credit balance of $26,000 in a T account for Allowance for Doubtful Accounts. 2. Journalize the transactions. Post each entry that affects the following selected T ac- counts and determine the new balances: Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31. bacing the provision for uncollectible accountsS on an